How to Build an Enterprise Context Layer for AI [2026 Guide]

Emily Winks profile picture
Data Governance Expert
Updated:06/11/2026
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Published:06/11/2026
19 min read

Key takeaways

  • Reverse-construct context from SQL and pipelines. Context Agents bootstrap in days what documentation takes months.
  • Five steps: Data Graph, Context Agents, Knowledge Folders, Context Engineering Studio, Context Lakehouse.
  • Simulate-before-ship: test against 47+ auto-generated scenarios from real business questions before production.
  • One context substrate, many consumers: Context Lakehouse + MCP/A2A connects every agent runtime.

How do you build an enterprise context layer for AI?

Building an enterprise context layer takes 4-8 weeks for initial production value when teams follow a structured approach. Organizations that reverse-construct context from existing SQL queries, pipelines, and usage patterns, rather than starting documentation projects, see 10x faster time-to-value. The five-step approach covers building the Enterprise Data Graph, bootstrapping with Context Agents, integrating business knowledge via Knowledge Folders, engineering trusted agents in Context Engineering Studio, and scaling across runtimes with the Context Lakehouse.

The five implementation steps:

  • Build the Enterprise Data Graph - connect data sources, validate lineage, identify most-queried assets
  • Bootstrap with Context Agents - auto-generate Descriptions, README pages, and SQL Intelligence from existing usage
  • Integrate business knowledge - Knowledge Folders + Business Graph + Linked Assets fuse structured and unstructured context
  • Engineer trusted agents - Context Repositories (soul.md + Skills + Semantic models), simulate against real scenarios
  • Scale across runtimes - Context Lakehouse (Iceberg-native, BYOC) + MCP/A2A + App Framework

Is your AI context ready?

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Building an enterprise context layer typically takes 4–8 weeks for initial production value, though full maturity spans 6–12 months across four levels. Organizations that reverse-construct context from existing SQL, pipelines, and usage patterns - rather than starting documentation projects - see 10x faster time-to-value. This guide walks through five implementation steps: building the Enterprise Data Graph, bootstrapping with Context Agents, integrating unstructured business knowledge, engineering trusted agents, and scaling across runtimes.


Why does building a context layer matter right now?

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AI model intelligence has compounded 1000x in the last decade. Enterprise context has barely moved. The result: 56% of CEOs report zero financial benefit from AI investments.

The Performance Equation explains why: Performance = Intelligence × Context. You’ve invested heavily in the intelligence side - better models, more compute, larger context windows. But the business context of your organization - what your tables mean, what your metrics actually measure, how your teams use data - is still trapped in Slack threads, undocumented pipelines, and the heads of three people who’ve been around long enough to remember why things work the way they do. This is the institutional knowledge loss problem - and it compounds as AI agents multiply.

Every enterprise that takes AI seriously hits the same three walls, in order:

Wall What it feels like What it costs
Wall 1: Context Bootstrapping “Building the agent takes 5 minutes. Giving it business context takes 5 months.” This is the cold start problem. 3–5 engineers × months writing prompts and definitions
Wall 2: Testing Hell “We’ve tested for a month and a half and no one feels at the end of testing.” Months in QA with no definition of “done”
Wall 3: Scaling Trap “When one agent learns, it doesn’t pass it back to enterprise memory.” Every new agent is a from-scratch rebuild - the multi-agent scaling crisis

The five steps in this guide map directly to these walls. Steps 1–2 close Wall 1. Step 4 closes Wall 2. Step 5 closes Wall 3. If your team has at least one AI agent in production or planned, and you’ve realized documentation alone won’t scale - you’re ready to start.


What do you need before you start?

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Organizational prerequisites:

  • Executive sponsor (VP or C-level). The context layer crosses data, AI, and business teams - someone needs the horizontal mandate.
  • At least one target agent use case. Don’t build a context layer in the abstract. Anchor it to a real agent - customer support, financial reporting, sales coaching - that the business wants to ship.
  • Cross-functional alignment. Data engineering builds the graph. AI engineering builds the agents. Business stakeholders validate the meaning. All three contribute and consume.

Technical prerequisites:

  • Data warehouse or lakehouse with query history. The reverse-construction methodology reads existing SQL to generate context. No query history means no automated bootstrap.
  • Lineage-producing pipelines (dbt, Airflow, Spark, or equivalent). Lineage is the backbone of the Enterprise Data Graph.
  • Agent development environment (Cursor, VS Code, or Claude Code) with MCP server support.
  • Cloud storage (S3, GCS, or ADLS) for BYOC context lakehouse deployment.

Time commitment:

Phase Timeline
Planning and domain selection 1–2 weeks
Enterprise Data Graph setup 1–2 weeks
Context Agent bootstrap 1–2 weeks
Agent engineering and simulation 2–3 weeks
Production deploy and observe 1–2 weeks
Total (initial production) 4–8 weeks

Step 1: How do you build the Enterprise Data Graph?

Permalink to “Step 1: How do you build the Enterprise Data Graph?”

Connect your data estate to a unified Enterprise Data Graph that maps every table, column, pipeline, and dashboard into a traversable knowledge graph with full lineage. This is the foundation - without it, Context Agents have nothing to reverse-construct from.

Time required: 1–2 weeks

The Enterprise Data Graph is L1 of the context maturity model. It answers the most basic question: what data do you have, where does it come from, and where does it go? Every capability above this - Context Agents, Knowledge Folders, Context Engineering Studio - reads from the Data Graph.

1. Connect your data sources via native connectors. Deploy connectors to your warehouse (Snowflake, Databricks, BigQuery, Redshift), BI tools (Looker, Tableau, Power BI), and pipeline orchestrators (dbt, Airflow, Spark). Modern context platforms ship 300+ native connectors - the integration layer should take hours, not months. Start with the sources that feed your target domain only.

2. Validate automated lineage end-to-end. Once connectors are live, verify that lineage traces correctly from source tables through transformations to downstream dashboards. Walk a single metric - say net_revenue - from its source column through the dbt model that computes net_rev = gross_rev - returns - discounts to the Looker dashboard that displays it. Column-level lineage matters more than table-level for AI agent accuracy. Target ≥90% coverage on your initial domain’s critical assets.

3. Identify your most-queried assets. Use query history analysis to surface the tables and views your analysts and pipelines actually hit most. This creates the “Popular SQL Assets” collection - the starting point for Context Agent enrichment in Step 2. Rank by query frequency × distinct users, not just raw count. The top 50–100 assets in your initial domain are the right starting scope.

Validation: All primary data sources connected and syncing. Lineage traces correctly for ≥3 representative metrics. Column-level lineage coverage ≥90%. Popular SQL Assets collection created with top 50–100 assets.


Step 2: How do you bootstrap context with AI agents?

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Deploy Context Agents across your most-queried assets to auto-generate three layers of context: human-readable Descriptions grounded in lineage, README pages capturing how teams actually use each asset, and SQL Intelligence - a reverse-engineered library of every business question ever asked of your data.

Time required: 1–2 weeks

This step closes Wall 1 - the context bootstrapping problem. Instead of a 5-month documentation project, Context Agents reverse-construct context from what your company already produces. The principle is reverse-construct from reality: read the systems, not the docs.

1. Run the Descriptions workflow. The Descriptions agent generates column-level and table-level descriptions grounded in actual lineage, column-name semantics, existing glossary terms, and downstream usage patterns. A column called rev doesn’t get described as “total revenue” - it gets refined to “net recognized revenue after returns and discounts, computed in the finance_monthly_close dbt model” because the agent reads the actual transformation. Tide reports a 70% AI suggestion acceptance rate, meaning roughly 7 in 10 descriptions need no human editing.

2. Run the README workflow. README pages go beyond what a column is to document how teams use it. Marketing pulls ltv_12m for campaign targeting; finance uses it for cohort forecasting; data engineering treats it as a join key to subscription_events. The README captures all three perspectives - auto-updated as usage shifts. This is where user context first appears in the system.

3. Run the SQL Intelligence workflow. This is the most differentiated step. SQL Intelligence walks your query history and reverse-engineers every business question that’s been asked: the natural-language intent, the joins used, the filters applied, the related columns. Target ≥100 business questions per domain. Each question records the SQL pattern, so future agents don’t hallucinate join keys. This library becomes the eval set for agent testing in Step 4 - your company’s historical business questions are, as the Activate keynote put it, “the biggest IP of companies right now.”

Validation: Description coverage ≥80% on Popular SQL Assets. README pages generated for top 20 assets with team-specific usage. SQL Intelligence library contains ≥100 business questions. Human review completed - acceptance rate ≥60%.

Rocket Mortgage enriches 300–400 new tables per week via Context Agents. Tide cut quarterly metadata enrichment from 10 weeks to 5 hours. GitLab went from years of documentation debt to 95% coverage.


Step 3: How do you integrate unstructured business knowledge?

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Bring in Knowledge Folders - the SOPs, policy documents, escalation playbooks, and unstructured data that lives in Confluence, Drive, and SharePoint - and let Context Agents fuse them with the Data Graph to produce a Business Graph with Linked Assets bridging business concepts to underlying data.

Time required: 1–2 weeks

This step bridges L2 (AI-Ready Data) to L3 (AI-Ready Context). Your Data Graph tells agents what data exists. Knowledge Folders tell agents what the business does with it. The Business Graph is what emerges when Context Agents traverse both together.

1. Curate your Knowledge Folders. Identify the 10–20 canonical documents your business actually runs on. Not every page in Confluence - the ones that define how work gets done. Refund SOPs, customer-tier definitions, escalation matrices, SLA policies, metric methodology docs. Quality over quantity: 15 canonical documents beat 500 undifferentiated pages.

2. Run Context Agents across Knowledge Folders and Data Graph together. When Context Agents work a domain now, they traverse both layers. What emerges is the Business Graph: “subscription” becomes a business concept with a definition, a billing relationship to “invoice,” churn metrics calculated a specific way, and tier definitions from the policy doc. Linked Assets bridges every business concept to the underlying tables and columns that implement it - when an agent answers “what’s subscription health?”, Linked Assets points to the specific implementing data assets.

3. Validate the Business Graph with domain experts. Have your business domain expert review the top 10 generated business concepts. Are the metric definitions correct? Do the policy associations match reality? This is the human-on-the-loop checkpoint - 30 seconds per concept to confirm or correct. Corrections flow back and improve every future agent run.

Validation: 10–20 canonical Knowledge Folder documents ingested. Business Graph contains ≥10 business concepts with definitions and relationships. Linked Assets bridges every concept to ≥1 implementing data asset. Domain expert has validated top 10 concepts.


Step 4: How do you engineer and test trusted AI agents?

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Use Context Engineering Studio to build a Context Repository - a versioned directory containing soul.md (agent identity), Skills files (procedural knowledge), and Semantic models (schema-to-language mappings). Then simulate the agent against 47+ auto-generated test scenarios from your real business questions before it talks to a single user.

Time required: 2–3 weeks

This step closes Wall 2 (Testing Hell). Without structured testing, teams loop for months with no definition of “done.” Context Engineering Studio’s simulate-before-ship methodology gives you that definition: agent accuracy on the business questions your company actually asks.

1. Create a Context Repository. A Context Repository is a versioned, domain-scoped directory - think of it as a GitHub repo for context. Three artifacts:

Artifact What it encodes Example
soul.md Agent identity: voice, mission, policies “You are the finance analytics agent. You use net_recognized_revenue, never gross. Escalate forecast variance >5% to FP&A.”
Skills files (*.md) Procedural knowledge: how work gets done escalation_routing.md, metric_conflict_resolution.md, quarterly_close_process.md
Semantic models (*.yml) Schema-to-language mappings “When someone asks about MRR, query subscription_monthly using mrr_net with filter active_only = true

soul.md is the first thing to write. Enterprise Skills files are reusable across agents - metric_conflict_resolution.md written for the finance agent can be imported by the sales coaching agent. Semantic models bridge natural language to schema, preventing hallucinated join keys.

2. Simulate against real business scenarios. Context Engineering Studio auto-generates 47+ test scenarios from your SQL Intelligence library (Step 2) and dashboard definitions. These are the actual questions your business asks. Run the agent and measure accuracy. Target ≥70% before production deployment. Each failing scenario reveals a specific context gap - a missing Skill, an incomplete Semantic model, an ambiguous soul.md instruction.

3. Iterate: fix context gaps, re-simulate, converge. The simulate-fix-resimulate loop typically takes 3–5 iterations. Identify the failure category, determine whether it’s a missing Skill, wrong Semantic model, or soul.md ambiguity, fix it, re-run the full eval set. Track accuracy by question category - you may be 90% on simple lookups but 30% on multi-table joins.

4. Deploy to your target runtime. Push the Context Repository to Snowflake Cortex, Databricks, Claude (Cursor/VS Code), or an internal build. The repository is portable - same artifacts, same governed context, regardless of runtime. Deploy to one runtime first, observe for 1–2 weeks, then expand.

Validation: Context Repository created with soul.md, ≥3 Skills files, and ≥1 Semantic model. Simulation completed against ≥47 scenarios. Agent accuracy ≥70%. All P0 failures addressed. Deployed with observability enabled.

Elastic launched on Context Engineering Studio at Activate 2026: “Any team, any tool, same answer.”


Step 5: How do you scale context across agent runtimes?

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Deploy the Context Lakehouse (Iceberg-native, BYOC on your cloud) as the persistent substrate, connect MCP and A2A protocols so every agent runtime reads from and writes back to the same governed layer, and extend via the App Framework so partner integrations compound your context automatically.

Time required: 1–2 weeks (infrastructure); ongoing (ecosystem expansion)

This step closes Wall 3 (The Scaling Trap). Without a shared context substrate, each agent is a from-scratch rebuild. With the Context Lakehouse and open protocols, Agent 10 starts smarter than Agent 1.

1. Deploy the Context Lakehouse on your cloud. The Context Lakehouse stores all context - Enterprise Data Graph, Business Graph, Context Repositories, Knowledge Folders - in Iceberg-native format on your S3, GCS, or ADLS. BYOC means you control storage, governance, and sovereignty. Iceberg was chosen for ACID transactions, schema evolution, time travel, and SQL compatibility - your context is not locked to any vendor. Scale: 8 billion reads in the last 90 days across the Context Lakehouse, Context Agents, and MCP servers.

2. Connect MCP and A2A to your agent runtimes. MCP delivers governed context to any AI agent with quality and policy verification before execution. A2A lets agents write observations and quality signals back - making the system bidirectional and enabling context compounding at production scale. MCP servers exist for every major runtime: Cortex, Genie, Claude (Desktop/Cursor/VS Code/Windsurf/Claude Code), Codex, Agentspace, Gemini, LangGraph. Marketplace-approved in Cursor, published as a VS Code Extension. 75+ enterprises on the MCP server today.

3. Extend via the App Framework. Partner integrations compound your context. Data classification engines (Sierra) classify columns and flow sensitivity tags into the context layer. Policy enforcement platforms (Immuta) read those tags and dynamically enforce access. 20+ ISVs on the App Marketplace. Each partner enrichment lands without Atlan shipping the capability natively - the ecosystem does the work.

Validation: Context Lakehouse deployed with BYOC. MCP connected to ≥2 runtimes. A2A write-back enabled. Agent 2 demonstrably starts with context Agent 1 built.


What are the most common implementation pitfalls?

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The most common failure mode is starting with a documentation project instead of reverse-constructing from reality. Teams spend 5+ months writing descriptions nobody trusts, while Context Agents can bootstrap the same context in days from SQL and lineage that’s already running.

Testing with synthetic benchmarks instead of real questions. Teams generate 50 test questions in a brainstorm. Real business questions - the ones from SQL Intelligence - are harder and more diverse. Rebuild the eval set from query logs. The accuracy numbers will change dramatically.

Fragmenting context across runtimes. The Cortex team builds one set of definitions, the Cursor team builds another. Deploy the Context Lakehouse as the single substrate from Step 5. One layer, many consumers.

No feedback loop. Context flows to agents, but agent observations never flow back. Enable A2A write-back. When an agent discovers a wrong metric definition in production, that observation should update the context layer for every agent. Without this, Agent 10 is as uninformed as Agent 1 - the context drift problem in action.


What do successful implementations have in common?

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Four patterns separate teams that ship production context layers in weeks from teams that stall in pilots for quarters.

Reverse-construct from reality. The context that matters already exists in SQL queries, pipeline definitions, and dashboard semantics. Engine went from installed to production context in days by running Context Agents over their most-used assets. Documentation-first approaches are the leading cause of stalled initiatives.

Human on the loop, not in the loop. AI does the production work - generating descriptions, discovering metric conflicts, tracing lineage. Humans show up at decision points: which of three competing MRR definitions is canonical? That 30-second call becomes authoritative for every agent. Tide reports 70% AI suggestion acceptance - humans review, not produce.

Open and portable from day one. Your context is your IP. Iceberg-native storage, MCP/A2A protocols, and BYOC mean your context survives the next five years of platform churn. Mastercard runs hundreds of millions of assets on this architecture.

Design for compounding. Each Context Agent run starts smarter than the last. Descriptions feed metric definitions; metrics feed the ontology; the ontology makes every future agent better. GitLab went from years of documentation debt to 95% coverage through compounding enrichment cycles.


How Atlan streamlines building your context layer

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Without a purpose-built context platform, building a context layer means stitching together a data catalog for discovery, a separate tool for semantic definitions, a documentation platform for business knowledge, a custom testing framework, and a homegrown MCP implementation. Each tool produces context in its own silo. Nothing compounds.

Atlan ships the five steps in this guide as one integrated pipeline. 300+ native connectors build the Enterprise Data Graph. Context Agents (Descriptions, README, SQL Intelligence) bootstrap context from existing SQL and usage. Knowledge Folders, Business Graph, and Linked Assets fuse structured and unstructured knowledge. Context Engineering Studio with Context Repositories (soul.md, Skills, Semantic models) engineers and simulates trusted agents. The Context Lakehouse (Iceberg-native, BYOC) stores everything on your cloud with MCP/A2A connecting every runtime. Each stage feeds the next - connectors → Data Graph → Context Agents → Business Graph → Studio → Lakehouse → observability traces flow back in. The loop closes.

Engine launched at Activate 2026 and went from Context Agent bootstrap to governed, production-ready context in days. Elastic achieved “any team, any tool, same answer” across their AI stack. Workday is co-building their semantic layer on Atlan. Gartner named Atlan a Leader in the 2026 MQ for Data & Analytics Governance, citing the Iceberg-native architecture specifically.


What comes after your context layer is live?

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Once your first agent is in production with an active feedback loop, three things happen in parallel.

Expand domains. Repeat Steps 1–4 for the next business domain - each subsequent domain is faster because the context substrate is richer and the Context Agents start smarter. Context compounding in action.

Grow the agent fleet. Each new agent reads from the shared Context Lakehouse. The Context Repository pattern - soul.md + Skills + Semantic models - means new agents inherit proven Skills from existing ones. The reusable Skills library is what makes Agent 10 a one-week project instead of a one-quarter rebuild.

Close the compounding loop. Monitor production observability for context gaps. Every failure pattern that gets fixed in the context layer improves every agent simultaneously. The context layer becomes a living system that grows smarter with every interaction - not a database you populate, but an organism you grow.


FAQs about building an enterprise context layer

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1. How long does it take to build an enterprise context layer?

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Initial production value takes 4–8 weeks following the five-step approach: Enterprise Data Graph setup (1–2 weeks), Context Agent bootstrap (1–2 weeks), Knowledge Folder integration (1–2 weeks), agent engineering and simulation (2–3 weeks), and Lakehouse deployment (1–2 weeks). Full L1–L4 maturity typically spans 6–12 months across expanding domains. Organizations using reverse-construction see 10x faster timelines than documentation-first approaches.

2. Do I need to document all my data before starting?

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No - and that’s the single most important implementation principle. Reverse-constructing from reality means Context Agents read your existing SQL queries, pipeline definitions, and dashboard semantics to generate context automatically. Manual documentation projects are the primary cause of stalled context layer initiatives. Let agents draft, humans review.

3. What’s the difference between a context layer and a data catalog?

Permalink to “3. What’s the difference between a context layer and a data catalog?”

A data catalog was built for humans to find tables through a search box. A context layer is built for AI agents to traverse and reason over at machine speed - reading and writing back billions of times per day. The substrate includes enterprise skills and procedural knowledge, not just technical metadata. The activation layer speaks MCP, graph APIs, and vector search, not just a search interface.

4. Can I build a context layer without Atlan?

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You can assemble each component independently - a catalog for discovery, a semantic layer for definitions, a vector store for retrieval, a custom testing framework, a homegrown MCP implementation. What you lose is the compounding loop: each component produces context in isolation, nothing feeds the next stage automatically, and every new agent starts from scratch. The integration cost typically exceeds a purpose-built platform within the first two agents.

5. How many agents should I target before investing in a context layer?

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One. The context layer pays for itself on the first production agent by compressing the 5-month cold-start problem into weeks. But the real payoff shows at Agent 3 and beyond, when every subsequent agent inherits everything the previous ones learned instead of rebuilding from zero. If you wait until Agent 5 to build the shared layer, you’ve already built five silos.

6. What if my data quality is poor - should I fix that first?

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Data quality and context are complementary, not sequential. Context Agents surface quality issues as they enrich - conflicting metric definitions, stale lineage, ambiguous column names. Building the context layer doesn’t require perfect data; it accelerates the path to better data by making quality gaps visible and actionable.

7. Which agent runtime should I start with?

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Start with whatever your AI team is already building on - Snowflake Cortex, Databricks Genie, Claude via Cursor, or an internal framework. The Context Lakehouse and MCP protocols make the context layer runtime-agnostic, so the initial choice doesn’t lock you in. Pick the runtime with the strongest internal champion and expand from there.

8. How do I measure whether my context layer is working?

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Three metrics matter: agent accuracy on real business questions (target ≥70%, measured via the eval set from SQL Intelligence), context coverage on critical assets (target ≥80% description coverage), and context compounding rate (does Agent N+1 start with measurably better context than Agent N). Track these weekly in the first quarter.


Sources

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  1. Effective Context Engineering for AI Agents, Anthropic Engineering Blog, 2025
  2. Agentic Context Engineering: Evolving Contexts for Self-Improving Language Models, ICLR 2026 / arXiv, 2026
  3. Memory in the Age of AI Agents, arXiv, 2026
  4. Context Engineering: LLM Memory and Retrieval for AI Agents, Weaviate, 2025
  5. Context Engineering: Best Practices for an Emerging Discipline, Redis, 2025
  6. Model Context Protocol Introduction, Anthropic, 2025
  7. Announcing the Agent2Agent Protocol (A2A), Google Developers Blog, 2025
  8. Apache Iceberg: The Open Table Format for Analytic Datasets, Apache Software Foundation

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Atlan is the Context Layer for AI - a Leader in the Gartner Magic Quadrant for D&A Governance (2026) and the Forrester Wave for Data Governance (Q3 2025). Atlan unifies your data, business knowledge, and the meaning behind your terms into one Enterprise Data Graph that gives every team and every AI agent the trusted context they need. Trusted by Mastercard, Workday, General Motors, CME Group, HubSpot, FOX, Virgin Media O2, Elastic, and 400+ enterprises representing $10T+ in market cap.

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