AI is supposed to make businesses more productive. But what happens when AI itself becomes one of the biggest expenses?
In this episode of ThinkData, Alex Hutchings is joined by Nikhil Mungil, Head of AI R&D at Cribl, to explore the growing challenge of AI sprawl, the true cost of enterprise AI adoption, and how businesses should think about AI investment as usage continues to accelerate.
Nikhil explains why the next phase of enterprise AI isn't simply about buying more tools or accessing better models. The real competitive advantage could come from how businesses harness that intelligence, integrate it into their own workflows, and measure whether it is actually creating value.
They discuss why AI budgets may eventually need to be managed more like payroll, with different teams receiving different levels of AI resource depending on their workloads and the value they generate. Nikhil argues that trying to measure AI ROI across an entire organisation can be misleading — the real measurement needs to happen much closer to individual teams, tasks and workflows.
Alex and Nikhil also explore how AI is already changing the structure of technical teams, with smaller groups increasingly supported by AI agents, copilots and AI-assisted development tools.
In this episode
- What AI sprawl means for enterprise technology teams
- Why organisations are struggling to measure AI ROI
- How businesses should think about AI token budgets
- Why AI spending could eventually be managed more like payroll
- The shift from standardised software towards intent-driven workflows
- Why enterprises may need to own more of their AI “harness”
- AI tools vs underlying intelligence
- How smaller teams can achieve more with AI agents and copilots
- Why AI investment needs to balance experimentation with measurable returns
- What CEOs should consider before investing millions into AI
One of Nikhil's central arguments is that businesses should “own as much of the harness as possible” — maintaining control over the workflows, evaluation and business logic surrounding AI, while retaining the flexibility to change underlying intelligence providers.
About Nikhil Mungil
Nikhil Mungil is Head of AI R&D at Cribl. His background spans companies including Substack, Splunk and ThoughtWorks, with much of his career focused on observability, security and large-scale machine data.
At Cribl, Nikhil established its AI research and development organisation across engineering and product, working on models for telemetry data alongside agentic products designed to help users turn huge volumes of machine data into useful insights.
About ThinkData
ThinkData brings together founders, executives and technology leaders shaping the future of data and AI.
Hosted by Alex Hutchings and brought to you by Dataworks, the podcast explores what it really takes to build, launch, and scale companies at the forefront of artificial intelligence and data.
About Dataworks
Dataworks helps Seed–Series B AI companies across the US and Europe build GTM, engineering, and data teams.
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