Why AI Agents Need Better Data With Steffen Hoellinger of Confluent

What if many of the problems businesses blame on AI are actually problems with their data? It's a question I wanted to examine when I sat down with Steffen Hoellinger, Field CTO EMEA at Confluent, during Current 2026 in San Francisco. After a year dominated by conversations about AI agents, I'm increasingly interested in the less glamorous work companies need to get right before these technologies can deliver anything useful.

Steffen works with enterprises across Europe, helping them manage real-time data and develop AI applications. Our conversation begins with the difficulties businesses face when information is scattered across departments, applications, and different locations. He explains why simply moving data between systems is no longer enough, and how processing, filtering, and preparing information as it moves can help applications make better decisions.

We also discuss Confluent's Streamhouse announcement and the growing role of Apache Kafka and Flink. Steffen explains how these technologies help businesses process information closer to where it originates, rather than waiting for scheduled transfers and reports. For companies trying to put AI agents into production, he argues that having the right information available when it is needed can make an enormous difference.

One of my favorite moments comes when our conversation turns to where this technology is actually being used. Steffen shares an unexpected example from the America's Cup, where Kafka helped exchange information between a racing yacht and a separate support boat. We also talk about factories and retail stores that can continue operating independently when their connection to the cloud is interrupted.

From there, we examine the particular challenges facing European companies. Data sovereignty, privacy, regulation, and concerns about relying too heavily on public cloud infrastructure all influence technology decisions. Steffen explains why open standards and the ability to operate across different environments matter to businesses that cannot afford extended downtime.

Another subject I wanted to challenge him on was the amount of money being spent on AI models. Steffen argues that companies shouldn't assume an expensive large language model is the answer to every problem. Traditional machine learning, event processing, and simpler analytical techniques can often perform particular jobs faster and at a lower cost. He explains how businesses can combine those approaches, using AI models only where they offer additional value.

We also discuss his experience founding Airy, which Confluent acquired in 2025, and what he's learned about moving from a startup to working with some of the world's largest enterprises. That leads to a wider conversation about governance, accountability, and what happens when organizations begin using large numbers of AI agents across their operations.

Steffen makes an interesting point about business processes that have historically depended on people and software working together. Introducing AI agents will require companies to reconsider how those processes operate, while retaining clear human accountability for the decisions being made.

Towards the end of our conversation, I ask what European CIOs should prioritize over the next 12 months. His advice is to concentrate on the data companies already control, understand where it comes from, establish consistent schemas and governance, and avoid committing too early to a single AI platform.

It's a useful conversation for anyone trying to separate the excitement surrounding AI from the practical work required to make it useful inside a business.

As more organizations prepare to introduce AI agents into everyday operations, are we spending too much time choosing models and not enough time understanding the information those models depend on? Listen to our conversation and share your thoughts.