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Business Ontology & Semantic Model

AI that understands your business, not just your data

A managed ontology and semantic model gives your AI agents shared business terms, rules and governed metrics. We build it from the systems you already run, then maintain it as your business changes.

A business ontology is a map of the things your business runs on, such as clients, invoices and contracts, and how they relate. A semantic model binds that map to your data and defines your metrics once. Together they help AI agents give grounded, consistent answers. Tekscape, a Managed Intelligence Provider (MIP), builds both from the systems you already run and maintains them as a managed service.

A gold knowledge graph of business entities connected above a compact server

Plain English

Ontology, semantic model, semantic layer: what each one does

These terms get used interchangeably. They are not the same thing. Here is how we use them.

How the three layers differ
TermWhat it isPlain-English example
OntologyThe things your business works with, and how they relate to each other.A Client has many Matters. A Matter has Documents. A Document can be Privileged.
Semantic modelThe ontology bound to real data, with metrics and business rules defined once."Active client" means a client with an open matter or an unpaid invoice. Everyone, and every agent, uses that definition.
Semantic layerThe governed access point that tools and AI agents query instead of raw tables.An agent asks for "revenue by client this quarter" and gets the approved number, not its own guess at a SQL join.

Raw tables tell an agent what columns exist. An ontology and semantic model tell it what those columns mean to your business.

Why it matters

Why AI agents need a model of your business

A language model knows a lot about the world and nothing about your firm. Point it at raw databases and it guesses. Guesses look confident. That is the problem.

  • Grounding

    Agents work from your entities and relationships, not from a best guess at what a column name means.

    • Less room for invented joins and fields
    • Answers trace back to named business objects
  • Shared definitions

    One definition of "client", "open matter" or "overdue invoice" for people, reports and agents.

    • Finance and operations work from one agreed definition
    • New agents inherit the same vocabulary
  • Governed metrics

    Metrics are defined, owned and versioned. Agents are set up to read the approved number, or say when there isn't one.

    • Access rules live in the model, not in each prompt
    • Changes are reviewed before agents use them

The evidence, with its caveat

One benchmark, one clear signal

In one published benchmark by researchers at data.world, a knowledge-graph vendor, GPT-4 answered questions over an enterprise SQL schema correctly 16% of the time. Over a knowledge-graph representation of the same database, accuracy rose to 54%.

Read that carefully. It is a single benchmark, in the insurance domain, from authors affiliated with a knowledge-graph vendor. Treat it as a vendor figure and as that paper's result, not a promise for your business. It points in a clear direction: models do better when they are given the meaning of the data, not just the tables.

Source: "A Benchmark to Understand the Role of Knowledge Graphs on Large Language Model's Accuracy for Question Answering on Enterprise SQL Databases" (arXiv), by researchers affiliated with data.world. Vendor figure; insurance domain only.

What it looks like

Your business as a graph, not a pile of tables

Each node is a business object. Each line is a relationship your people already understand. Agents follow the same lines.

Example: a Client has Contracts. Contracts generate Invoices. Invoices tie back to the work in Tickets. Ask an agent which clients have overdue invoices on an expiring contract, and it walks the graph instead of guessing at joins.

Example business ontology: it and professional servicesEntities: Client, Contract, Invoice, Ticket, Asset, Vendor, Employee role. Relationships: Client signs Contract; Contract bills through Invoice; Client opens Ticket; Ticket concerns Asset; Contract covers Asset; Vendor supplies Asset; Employee role resolves Ticket; Vendor is named in Contract.signsbills throughopensconcernscoverssuppliesresolvesis named inClientContractInvoiceTicketAssetVendorEmployee role
  • Client signs Contract
  • Contract bills through Invoice
  • Client opens Ticket
  • Ticket concerns Asset
  • Contract covers Asset
  • Vendor supplies Asset
  • Employee role resolves Ticket
  • Vendor is named in Contract
An ontology names the things your business runs on and how they relate, so an agent answers in your terms instead of guessing from table names.

How Tekscape builds it

From your systems to a managed model

  1. Inventory

    Inventory your systems

    We list the systems that hold your business data: practice management, ERP, accounting, CRM, ticketing, file stores and existing reports. We note who owns each one and which numbers people already trust.

  2. Model

    Model core entities and relationships

    We name the objects your business runs on and how they connect. We start small, with the entities your first AI agents need, and grow from there.

  3. Bind

    Bind the model to your data

    Each entity and metric maps to real fields in your systems. Business rules and access controls are written into the semantic model, so agents inherit them.

  4. Validate

    Validate with your team

    Your people check definitions and test answers against numbers they already know. Nothing goes live on our word alone.

  5. Maintain

    Maintain it as a managed service

    Businesses change. New matter types, new products, new systems. We update the ontology and semantic model on an ongoing basis, review changes before agents use them, and keep a change history.

Start from what you have

Start from the Power BI models you already have

Most firms already own part of a semantic model. It lives in Power BI datasets, finance reports and the spreadsheets everyone trusts. We start there, not from a blank page.

  • Power BI semantic models

    Your existing Power BI semantic models already define tables, relationships and measures. We reuse those definitions, reconcile conflicts and extend them for AI agents.

  • Microsoft Fabric IQ ontology (preview)

    Microsoft describes the Fabric IQ ontology as "a shared, machine-understandable representation of your business" that can be generated from existing Power BI semantic models. It is in preview, and manual review and data bindings are still required. We use it where it fits and do not promise an auto-generated ontology.

  • Your own systems of record

    Where no model exists yet, we build from the source systems directly. Where you choose private AI, the model runs alongside your data, on hardware you own or in your Azure subscription.

Examples by industry

What the core entities look like in practice

Illustrative starting entities; every business adds its own
IndustryCore entitiesQuestions an agent can answer once they are modeled
LegalMatter, Client, Document, PrivilegeWhich documents on this matter are privileged? Which clients have open matters with no activity this month?
HealthcarePatient, Encounter, ClaimWhich encounters have no claim submitted? Which claims are waiting on documentation?
FinanceAccount, Invoice, ContractWhich accounts have invoices outside contract terms? Which contracts are up for renewal with open balances?

These are illustrations of structure, not client work or results.

A familiar idea, sized for the mid-market

The approach large enterprises use, run for you

The idea is not new. Palantir describes its Ontology as representing "the complex, interconnected decisions of an enterprise, not simply the data." Microsoft is bringing the same concept into Fabric.

We apply the same principle to mid-market firms in New York and New Jersey, without an enterprise platform program. Tekscape is not affiliated with Palantir; we mention it only as a comparison.

As a Managed Intelligence Provider (MIP), we treat the ontology as part of the service, not a one-off project. It sits under the managed agent harness and the private AI we run on your hardware or in Azure, and we keep it current as your business changes.

FAQ

Frequently asked questions

What is the difference between an ontology and a semantic model?
An ontology defines what your business objects are and how they relate; a semantic model binds that definition to your actual data and adds governed metrics and rules. The ontology says a Client has Matters. The semantic model says which table holds matters and exactly how "open matter" is calculated.
Do AI agents really need an ontology?
AI agents that answer questions about your business need some model of it, or they guess. Without one, an agent infers meaning from column names and invents joins. With one, it works from named entities, approved definitions and access rules. One published benchmark by data.world researchers saw accuracy rise from 16% to 54% when the model was given a knowledge-graph view of the data. That is a single vendor-affiliated result in the insurance domain, so treat it as a vendor figure, not a prediction for your business.
Can you build on our existing Power BI semantic models?
Yes, existing Power BI semantic models are usually our starting point. They already hold tables, relationships and measures your team trusts. We reconcile conflicting definitions and extend the model for AI agents. Where it fits, we also use the Microsoft Fabric IQ ontology, which is in preview and still needs manual review.
Is the ontology a one-time project?
No, we run it as an ongoing managed service because your business keeps changing. New services, systems and rules mean the model has to change too. We review and version every update before agents use it, which keeps definitions consistent over time.
Where does the semantic model run, and who can see it?
Where you choose private AI, the semantic model runs alongside your data, on hardware you own or in your Azure subscription. Access rules are written into the model, so agents are limited to what the person or role they act for is allowed to see. Tekscape, as your Managed Intelligence Provider (MIP), operates it under those rules.

Sources

  1. arXiv: A Benchmark to Understand the Role of Knowledge Graphs on LLM Accuracy for Question Answering on Enterprise SQL DatabasesVendor-affiliated authors (data.world); insurance domain only. Vendor figure; source of the 16% and 54% figures.
  2. Microsoft Learn: What is Fabric IQ (preview)Fabric IQ ontology is in preview and can be generated from existing Power BI semantic models; manual review and bindings still required.
  3. Palantir Foundry documentation: The Ontology systemUsed as an analogy only; no affiliation implied.

Find out what your business model looks like to an AI agent

We review the systems and reports you already have and show you where a managed ontology and semantic model could make your AI agents more reliable.

Talk to Tekscape