Economic uncertainty increases need to use high-quality data for better insights, decision-making and enterprise value, ISG Provider Lens report says
Many enterprises in the U.S. are launching initiatives to realize the potential of generative AI (GenAI) for data-driven decision-making to maintain growth amid economic uncertainty, according to a new research report published by Information Services Group (ISG), a leading global technology research and advisory firm.
“Companies believe the new tools will help them generate value from data.”
The 2023 ISG Provider Lens™ Analytics Services report for the U.S. finds that most companies believe it is important to invest in GenAI over the next 24 months. Enterprises have begun the first two stages of GenAI adoption — knowledge management and functional process optimization — and will later move on to transforming products and reinventing their operational models around AI, ISG says.
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“The surge of enterprise activity around GenAI suggests many of the most successful implementations will be aimed at enhancing existing analytics investments,” said Shriram Natarajan, ISG Analytics lead for the Americas. “Companies believe the new tools will help them generate value from data.”
Enterprises have focused for years on gaining access to more data, and now their efforts have shifted to generating more business value from the data they have, the report says. GenAI is a key component of several 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 recognizing that good data is more important than big data when it comes to business relevance and impact, the report says. They increasingly seek service providers with strong data governance capabilities to ensure their data is trustworthy and cleared of incomplete or irrelevant results.
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More employees can now use data for insights and decision-making because self-service features, especially natural-language processing, are integrated into more analytics tools and services, ISG says. Non-technical professionals can gain insights from relevant data by asking questions in their own terms, bypassing IT departments.
“Many advanced analytics capabilities no longer require programming skills,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “With proper access controls, data democratization can unleash powerful innovations throughout an organization.”
Though GenAI has so far gone largely unregulated in the U.S., several types of legislation being considered at both the federal and state levels could impose more scrutiny on uses of the technology, the report says. In particular, laws addressing data privacy and accountability for AI algorithms and automated decision-making may require impact assessments of companies’ GenAI implementations.
The report also explores other trends in analytics services, including the rising importance of establishing data lineage and ongoing efforts to personalize customer experiences while keeping consumer data anonymous.
For more insights into the analytics challenges U.S. companies face, including the rising cost of analytics technology, and advice on how to overcome them, see the ISG Provider Lens™ Focal Points briefing here.
The 2023 ISG Provider Lens™ Analytics Services report for the U.S. evaluates the capabilities of 62 providers across eight quadrants: Data Science Services — Large Market, Data Science Services — Midmarket, Data Science Services — Specialist, Data Engineering Services — Large Market, Data Engineering Services — Midmarket, Data Engineering Services — Specialist, Data Management Services — Large Market and Data Management Services — Midmarket.
The report names Accenture, Apexon, Capgemini, Cognizant, Deloitte, Genpact, HARMAN Digital Transformation Solutions, HCLTech, Hexaware, Infogain, Infosys, Mphasis, Persistent Systems, TCS, Tech Mahindra, UST, Virtusa and Wipro as Leaders in three quadrants each. It names Encora, Fractal, HTC Global Services, MathCo, Quantiphi, Tiger Analytics and Tredence as Leaders in two quadrants each. Brillio, Impetus Technologies and ZS are named as Leaders in one quadrant each.
In addition, NTT DATA and Trianz are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants each. Sigmoid is named as a Rising Star in two quadrants.
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