The rise of the data-driven enterprise

In today's fast-paced business landscape, data is the new currency. Companies are racing to invest heavily in analytics and business intelligence (BI) tools.

What is the goal of their investment? To transform raw data into actionable insights that drive smarter decisions and fuel business growth.

Nearly 100% of organizations are increasing their BI investments

97% of organizations increased their investments in data analytics and BI last year, according to a recent Enterprise Strategy Group (ESG) report. ESG, a part of TechTarget, surveyed 375 data and IT professionals to gain insight into current data trends. These pros—from North America (US and Canada)—are responsible for evaluating, purchasing, managing, and building analytics and business intelligence solutions.

If so many enterprises are increasing their BI investment—how can organizations be sure they're maximizing their BI investments?

Empowering users with AI integration

BI comprises more than just collecting data. BI makes data accessible and usable for everyone in the organization. That's where artificial intelligence (AI) comes in. By integrating AI and machine learning (ML) into analytics and BI platforms, companies are empowering their employees. The results, according to the ESG report, Unleashing the Power of AI in Analytics and Business Intelligence, are impressive: 93% of organizations report that AI and ML have significantly boosted end-user adoption of these tools.

Now, every end user can become a data-savvy decision-maker.

Steps to increase use of AI among end users

Improved accuracy & productivity: The AI advantage

Nearly all organizations have seen improvements in their analytics and BI capabilities. This is because of their integration of AI, as evidenced by the ESG report. But it's not just about enhancing data management and analysis processes. AI for data analytics delivers tangible benefits such as improving forecasting accuracy, employee productivity, and business decisions and strategy.

Key benefits of AI in analytics & BI

Organizations increasingly look to AI to significantly transform the performance and effectiveness of their analytics and BI operations. In fact, 91% of organizations are actively pursuing more ways to leverage AI with analytics and BI. These organizations have noted the following key benefits of using AI in their analytics and BI platforms:

Efficiency & productivity:

• Improved forecasting accuracy (24%)

• Improved employee productivity (24%)

• Reduced cost of maintaining compliance (22%)

• Improved operational efficiency (22%)

Decision-making & strategy:

• Improved business decisions and strategy (23%)

• Improved ability to find new market opportunities (20%)

Innovation and growth:

• Increased customer spending by identifying upsell/cross-sell/deep-sell opportunities (22%)

• Improved quality of products/services delivered (21%)

The future of Business Intelligence: AI-powered insights

The AI revolution in business intelligence is just beginning. The ESG report reveals that nearly 40% of organizations are already planning to incorporate cutting-edge AI capabilities. This includes generative AI and augmented analytics. 

These technologies hold the promise of automating mundane tasks, uncovering hidden patterns within data, and delivering personalized recommendations. This ultimately makes data analysis faster, easier, and more accessible across the organization.

The data dilemma: more data, more problems

Every enterprise wants more data—but the ESG report reveals a surprising paradox. While investment in analytics and BI is soaring, organizations are struggling to turn data into timely action. In fact, 78% of firms admit it takes them too long to act on data insights, the report states.

This struggle is often because of the overwhelming volume of data available. The report notes, “The ever-increasing volume of distributed data available to the business overwhelms data-centric stakeholders."

In other words, the sheer abundance of data has become a barrier to decision-making, not an enabler.

Data Overload: The modern workplace hazard

Imagine your smartphone incessantly buzzing with beeps and pings. Most notifications are trivial, but a few demand immediate attention. The sheer volume makes it nearly impossible to distinguish between the two. This is the reality of "data overload" in today's workplace.

Employees are drowning in data, struggling to identify which insights are truly valuable. This leads to delayed decisions and missed opportunities. The fast-paced nature of modern business exacerbates this challenge, as the report emphasizes:

“With the rate of change in the business often being faster than the rate at which data can be collected and analyzed, organizations need help ensuring the timely delivery of accurate insights based on the current state of the business.”

The urgency of real-time insights

The fast-paced nature of modern business exacerbates this challenge. The report states that "the rate of change in the business is often faster than the rate at which data can be collected and analyzed.”

Organizations need solutions that can keep up with this rapid pace and deliver accurate insights in real-time.

Investing in Business Intelligence: A strategic imperative

Enterprises are turning to Business Intelligence (BI) as a potential solution to this urgent problem. BI tools uncover patterns, trends, and insights within data. This enables more strategic, data-driven decisions.

The ESG report confirms this trend, with 89% of organizations planning to increase their investment in BI tools. These investments are not just about acquiring more tools but also about integrating, accessing, and analyzing data more effectively. In fact, 73% of organizations already use at least three different BI tools. This highlights the complexity of the modern data landscape.

89% of organizations plan to allocate more money to tools

The growing importance of Artificial Intelligence

However, BI alone is not enough to conquer the data abundance. To fully address the challenges, businesses must enhance BI with AI. AI eliminates manual processes to improve efficiency, promote productivity, and democratizes analytics.

Augmented analytics or generative AI (GenAI) empowers executives to quickly and easily access, analyze, explore, and visualize data in a collaborative way. Implementing AI systems can lead to significant benefits in improving efficiency and decision-making across the organization.

Primary and top benefits of using generative AI for analytics and BI

Beyond efficiency: AI's strategic impact

These benefits clearly show that AI is not merely a tool for streamlining operations. AI is a strategic asset that can give organizations a competitive edge. It does this by enabling them to anticipate market trends, personalize customer experiences, and optimize operations.

The ability of AI to identify new market opportunities, improve product/service quality, and accelerate time to market is becoming increasingly apparent.

Seizing the AI Advantage: Empower your business with intelligent BI

The integration of artificial intelligence and business intelligence is not just a trend. This integration is a necessity in today's data-driven world. This is the key to unlocking the full potential of data and empowering organizations. This allows them to make smarter, faster, and more informed decisions.

Ready to transform your data into actionable insights and drive real business results? Download the ESG eBook, “The State of Analytics and Business Intelligence Platforms: Infusing AI into Analytics Final Results,” and learn how AI-powered BI can revolutionize your decision-making processes.