More data products via Jevons paradox

Summary 
In this episode, I sit down with Gleb Mezhanskiy, CEO and co-founder of Datafold, to explore how agentic AI is reshaping data engineering. We unpack the leap from chat-assisted coding to truly agentic workflows where AI not only writes SQL and dbt models but also executes queries, debugs, runs tests, and ships production-ready outcomes. Gleb explains why teams that master this AI-first loop can see 10–50x gains, how security/compliance concerns can be addressed with platform-native LLM endpoints, and why the role of data engineers is shifting from code authors to operators of autonomous agents. We dig into the consolidation of the modern data stack, the economics driving more data products (Jevons paradox), and why product thinking, domain knowledge, and cross-functional skills will define the next wave of standout data professionals. We also cover practical steps for leaders and ICs: modernizing off legacy platforms, establishing safe AI adoption paths, codifying reusable “skills” and context for agents, and building validation utilities that keep the inner loop fast and trustworthy. Finally, Gleb shares how Datafold moved to fully AI-driven software delivery and why “outcomes over tools” is the emerging model for complex initiatives like data platform migrations—and how this reframes data quality for the AI era, emphasizing broad data access plus rich context over brittle human-centric tests. 
Announcements 

• Hello and welcome to the Data Engineering Podcast, the show about modern data management
• If you lead a data team, you know this pain: Every department needs dashboards, reports, custom views, and they all come to you. So you're either the bottleneck slowing everyone down, or you're spending all your time building one-off tools instead of doing actual data work. Retool gives you a way to break that cycle. Their platform lets people build custom apps on your company data—while keeping it all secure. Type a prompt like 'Build me a self-service reporting tool that lets teams query customer metrics from Databricks—and they get a production-ready app with the permissions and governance built in. They can self-serve, and you get your time back. It's data democratization without the chaos. Check out Retool at dataengineeringpodcast.com/retool today and see how other data teams are scaling self-service. Because let's be honest—we all need to Retool how we handle data requests.
• Your host is Tobias Macey and today I'm bringing back Gleb Mezhanskiy to talk about our predictions for the impact of AI on data engineering for 2026

Interview

• Introduction
• How did you get involved in the area of data management?
• What are the concrete steps that teams need to be taking today to take advantage of agentic AI capabilities?
• What are the new guardrails/constraints/workflows that need to be in place before you let AI loose on your data systems?
• How do you balance the potential cost savings and productivity increases with the up-front investment and variability in inference spend?

Contact Info
 

• LinkedIn

Parting Question
 

• From your perspective, what is the biggest gap in the tooling or technology for data management today?

Closing Announcements
 

• Thank you for listening! Don't forget to check out our other shows. Podcast.__init__ covers the Python language, its community, and the innovative ways it is being used. The AI Engineering Podcast is your guide to the fast-moving world of building AI systems.
• Visit the site to subscribe to the show, sign up for the mailing list, and read the show notes.
• If you've learned something or tried out a project from the show then tell us about it! Email hosts@dataengineeringpodcast.com with your story.

Links
 

• Blog Post
• Datafold
• Claude Opus 4.5
• Harry Potter - Muggles
• Jevon's Paradox
• Modern Data Stack
• Dagster Compass
• Gravity Orion
• MCP == Model Context Protocol
• Qwen

The intro and outro music is from The Hug by The Freak Fandango Orchestra / CC BY-SA