U.S. Firms Start Aiming GenAI at Business Challenges
The 2023 ISG Provider Lens™ Analytics Services report for the U.S. reveals that many enterprises are investing in generative AI (GenAI) for data-driven decision-making amid economic uncertainty. The report highlights the importance of GenAI adoption, focusing on knowledge management, functional process optimization, and transforming products. It also emphasizes the significance of good data over big data, the role of GenAI in emerging use cases for analytics, the democratization of data, and the potential impact of upcoming legislation on GenAI implementations.
From the perspective of a Market Research Analyst, the integration of Generative AI (GenAI) in analytics services is a transformative trend for business operations. Companies are shifting focus from simply accumulating large data sets to extracting actionable insights through advanced analytics tools. The report indicates that enterprises are investing in GenAI to enhance decision-making and create enterprise value amidst economic uncertainty. This shift is significant as it suggests a move towards quality over quantity in data management. The emphasis on data governance capabilities by service providers also indicates a maturing market where data quality and trustworthiness are paramount.
Furthermore, the democratization of data through self-service features such as natural-language processing, which allows non-technical professionals to bypass IT departments for insights, is likely to accelerate innovation and operational efficiency. However, the potential increase in the cost of analytics technology poses a challenge for companies, which may need to balance innovation with cost management. Overall, the adoption of GenAI is poised to drive competitive advantage for companies that can effectively integrate it into their analytics strategies.
As a Legal Expert, the unregulated state of GenAI in the U.S. is a critical area for businesses to monitor. The report suggests that forthcoming legislation at federal and state levels could introduce new compliance requirements for AI algorithms and automated decision-making. Companies involved in GenAI will need to prepare for impact assessments and possibly adjust their practices to align with new data privacy and accountability laws. This evolving legal landscape could have significant implications for the cost and complexity of GenAI implementations.
Given the report's mention of data privacy and the importance of establishing data lineage, businesses must be proactive in understanding their data flows and the implications of potential regulations. This will be crucial for maintaining consumer trust and avoiding legal pitfalls in the future. Organizations may need to invest in legal and compliance expertise to navigate this area effectively.
Examining the report from a Financial Analyst's viewpoint, the adoption of GenAI is an indicator of where businesses are allocating their technology investments. The prioritization of GenAI over the next 24 months signifies that companies anticipate a return on investment through improved data analytics capabilities. This could lead to more accurate predictions, better customer experiences and ultimately, increased revenue.
The report's findings on the leadership positions of various providers in the analytics services market can also inform investment decisions. The distinction between 'Leaders' and 'Rising Stars' provides insight into the current market dynamics and where growth potential may lie. For stakeholders, understanding which companies are at the forefront of GenAI and analytics services could offer a glimpse into future market leaders and innovators.
01/22/2024 - 10:00 AM
Economic uncertainty increases need to use high-quality data for better insights, decision-making and enterprise value, ISG Provider Lens™ report says
STAMFORD, Conn. --(BUSINESS WIRE)--
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 today by Information Services Group (ISG ) (Nasdaq: III ), a leading global technology research and advisory firm.
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.
“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.
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.
Customized versions of the report are available from FactSpan , Hexaware , Impetus Technologies and Persistent .
The 2023 ISG Provider Lens™ Analytics Services report for the U.S. is available to subscribers or for one-time purchase on this webpage .
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe , as well as in the U.S. , Canada , Brazil , the U.K. , France , Benelux, Germany , Switzerland , the Nordics, Australia and Singapore /Malaysia , with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage .
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III ) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn. , ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240122867359/en/
Press Contacts:
Will Thoretz, ISG
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
isg@matternow.com
Source: Information Services Group, Inc.
What is the focus of the 2023 ISG Provider Lens™ Analytics Services report for the U.S.?
The report focuses on the adoption of generative AI (GenAI) for data-driven decision-making amid economic uncertainty.
What are the key stages of GenAI adoption mentioned in the report?
The report highlights knowledge management, functional process optimization, and transforming products as the key stages of GenAI adoption.
What is the significance of good data over big data according to the report?
The report emphasizes that good data is more important than big data when it comes to business relevance and impact.
What are some emerging use cases for analytics mentioned in the report?
The report mentions contextual searches, recommendation engines, predictive analytics, virtual assistant solutions, and synthetic data generation as emerging use cases for analytics.
How does the report describe the democratization of data?
The report states that non-technical professionals can gain insights from relevant data by asking questions in their own terms, bypassing IT departments.
What potential impact of legislation on GenAI implementations is mentioned in the report?
The report highlights that upcoming legislation may impose more scrutiny on uses of GenAI, particularly in relation to data privacy and accountability for AI algorithms and automated decision-making.
Which companies are named as Leaders in the report?
Accenture, Apexon, Capgemini, Cognizant, Deloitte, Genpact, HARMAN Digital Transformation Solutions, HCLTech, Hexaware, Infogain, Infosys, Mphasis, Persistent Systems, TCS, Tech Mahindra, UST, Virtusa, and Wipro are named as Leaders in the report.
Which companies are named as Rising Stars in the report?
NTT DATA, Trianz, and Sigmoid are named as Rising Stars in the report.
