This guide discusses the critical role of data observability in ensuring AI readiness. It outlines how many organizations face challenges in transitioning AI from pilot projects to reliable production use cases due to unreliable data. The document cites a Gartner prediction that 60% of AI projects will be abandoned by 2026 if not supported by AI-ready data. It emphasizes that AI systems operate under the assumption that data inputs are valid, which can lead to significant failures when the data is flawed. The guide details characteristics of AI-ready data, including accuracy, completeness, and continuous validation. It also presents a five-step roadmap for organizations to build a practical observability-first approach to AI-ready data, highlighting the need for continuous monitoring, automation of data quality issues, and integration of data health checks within AI workflows. The document concludes by stressing that most AI failures stem from data reliability issues rather than model failures, advocating for continuous verification of data health to enable trustworthy AI decision-making.