STAMFORD, Conn., January 22, 2024–Numerous U.S. enterprises are initiating efforts to harness the potential of generative AI (GenAI) for data-driven decision-making to sustain growth amidst economic uncertainty, as indicated by a new research report released today by Information Services Group (ISG) (Nasdaq: III), a prominent global technology research and advisory firm.
The 2023 ISG Provider Lens™ Analytics Services report for the U.S. reveals that a majority of companies consider it crucial to invest in GenAI over the next 24 months. Enterprises are currently in the initial stages of GenAI adoption, focusing on knowledge management and functional process optimization. Subsequently, they plan to advance to transforming products and reshaping operational models around AI, according to ISG.
“The upswing in enterprise activity related to GenAI suggests that many of the most successful implementations will be geared towards enhancing existing analytics investments,” remarked Shriram Natarajan, ISG Analytics lead for the Americas. “Companies anticipate that these new tools will aid in generating value from data.”
For years, enterprises have concentrated on acquiring more data, and now the focus has shifted to extracting more business value from the data at their disposal, the report states. GenAI plays a crucial role in various emerging use cases for analytics, including contextual searches, recommendation engines, predictive analytics, virtual assistant solutions, and synthetic data generation.
With GenAI-powered analytics tools, U.S. companies are realizing the significance of good data over big data when it comes to business relevance and impact, the report highlights. There is an increasing preference for service providers with robust data governance capabilities to ensure trustworthy data, free of incomplete or irrelevant results.
The integration of self-service features, particularly natural-language processing, into a growing number of analytics tools and services enables more employees to leverage data for insights and decision-making. Non-technical professionals can now gain insights from relevant data by asking questions in their terms, bypassing the need for IT department involvement.
“Many advanced analytics capabilities no longer necessitate programming skills,” noted Jan Erik Aase, partner and global leader at ISG Provider Lens Research. “With proper access controls, data democratization can unleash powerful innovations throughout an organization.”
While GenAI has remained largely unregulated in the U.S. so far, the report suggests that several types of legislation under consideration at both federal and state levels may impose increased scrutiny on the technology’s applications. Notably, laws addressing data privacy and accountability for AI algorithms and automated decision-making may necessitate impact assessments for companies’ GenAI implementations.
The report also delves into other trends in analytics services, including the growing importance of establishing data lineage and ongoing efforts to personalize customer experiences while maintaining consumer data anonymity.