6 in 10 Enterprises Can't Find the Root Cause When Their AI Workloads Fail | Paul Appleby, Virtana

6 in 10 Enterprises Can't Find the Root Cause When Their AI Workloads Fail | Paul Appleby, Virtana

July 15, 2026 · 45 min · Episode 366

About this episode

Paul Appleby discusses the challenges enterprises face in identifying root causes of AI workload failures and the implications for AI infrastructure governance.

Companies are spending billions building AI factories, but most of them can't tell you why their AI workloads are failing, whether their GPUs are actually being used, or what their infrastructure is going to cost them when agents start running at scale. Paul Appleby, CEO of Virtana, joins Craig Smith to discuss the findings of their AI Factory Reality Check study, a research report that reveals a striking and underappreciated gap between the pace of AI infrastructure investment and the governance needed to run it safely and efficiently. Six in ten enterprises, the study found, cannot automatically identify root cause when an AI workload fails, a problem that compounds fast once you're running critical services on AI infrastructure at scale. The conversation covers the mechanics of Virtana's observability platform, capturing 20,000 metrics per second across the entire AI stack, correlating them in real time, and increasingly using agentic capabilities to remediate failures automatically, but its most important insights are structural. Appleby makes a sharp observation that cuts through a lot of AI optimism: token costs are falling, but token consumption is exploding, meaning the…

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