AI agents keep giving confident wrong answers. The context layer is enterprise AI's next production problem.

Enterprise AI agents are producing confidently incorrect answers due to fragmented business logic across SQL, BI tools, and retrieval systems—a context layer problem that is becoming production-critical as hybrid retrieval adoption triples. Snowflake's Horizon Context and Cortex Sense establish a governed, shared semantic layer to ensure AI agents and tools operate from consistent data definitions, addressing what analysts now identify as the real battleground for enterprise agentic AI rather than model improvements. IT organizations must prioritize context and data governance infrastructure as foundational to AI agent reliability and trustworthiness, with significant implications for data architecture, metadata management, and cross-functional data stewardship.