2023 AI, Data and Analytics Network Trends and Spends Highlights
As we look ahead to 2023, the AI, Data and Analytics Network along with SAP have provided us with insights into the trends and spends of organizations investing in data programs to help us with our own digital planning.
Each year the AI, Data and Analytics Network put out a trends and spends report covering the data, analytics, and AI space. With the assistance of SAP, they’ve interviewed hundreds of data leaders to get their perspectives on the quickly transforming data landscape as well as the technologies they have and plan to use. We’ll take a look at some of the highlights from this year’s report and cover what to expect out of 2023.
Advanced analytics has come a long way in the past few years. Most companies originally began their advanced analytics journey to optimize operational efficiency, however, as their data and analytics programs became more advanced (pun intended), organizations are now beginning to use it to find new revenue opportunities. 43% of respondents say they use advanced analytics to identify and generate new revenue streams. This is an extreme increase compared to last year’s number of only 9%.
Even with this increase in advanced analytics initiatives and 73% of respondents saying they have an organizational data strategy in place, there are many who are struggling for a multitude of reasons. The top 3 being:
All of these come as no surprise to us as a technology consulting company, but seeing the large percentage that are affected by these inhibitors just confirms what we are seeing in the field.
Self-service analytics and bringing transparency of information across the entire business is something that has been growing over the past few years, but it seems we still have a way to go. Leaders say 50% or less of their company has access to use data and analytics. A desire to grow data and analytics programs in order to provide access for everyone could be the reason 73% of leaders plan to spend more on data and analytics in 2023.
As mentioned before, advanced analytics has come a long way, and as more organizations implement these initiatives with proper governance and training, we can see they are meeting, and even exceeding, expectations in a vast number of companies. Though the percentage of organizations seems fairly low (with 51% in the 26-50% range), this is quite the improvement from last year where 53.5% said that less than 25% of their initiatives were meeting or exceeding expectations.
Is your company still not sure exactly what advanced analytics is? We’ve got just the article for you.
Data Governance, Security, and Regulations
With the continuous increase of data being generated from businesses all across the globe, governments are taking more efforts to protect their citizens’ private data. This means more and more regulations, such as the General Data Protection Regulation (GDPR) the EU put in place in 2018, or the California Consumer Privacy Act (CCPA) also implemented in 2018. A huge majority of leaders surveyed know more regulations are coming within the next 12 months, and that they will be affected by them.
Because of these regulations, companies will no doubt be looking for assistance in the data governance and security areas as they try to keep up with both internal and external data standards and policies.
Artificial intelligence and machine learning are always a hot topic, and we are seeing more companies adopt some form of it whether it’s automating a few tasks or assisting with entire business strategies to predict consumer behavior. As you can see below, 67% of respondents have already implemented AI/ML development tools, 60% have implemented AI/ML monitoring solution, and 72% have implemented predictive & prescriptive analytics solutions.
However, there is still room for growth. 42% of respondents say they are only at the Awareness stage of the Artificial Intelligence Maturity Curve with only 3% at the Transformational stage. Over half of the data leaders surveyed say they expect their AI/ML budget to increase over the next year, suggesting that we’ll see more organizations moving up in the maturity curve. This is exciting for both businesses and tech consulting firms like us because together we get to take on more challenging innovations to help businesses grow.
It’s always interesting to see what companies have accomplished this year with their data, analytics, and AI programs, and what they are planning to achieve in 2023. You can view the full report from the AI, Data and Analytics Network here.
If you’re one of the many organizations looking to increase any of these initiatives mentioned above, feel free to contact us for an no obligation consultation. We can help you get started in the right direction and overcome the hurdles that might be holding you back.
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