In collaboration with Cleverbit Software.
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Wait, why are we talking about Business Intelligence tech?
If you’ve been following our trend reports for the last few years, you’ll notice that we’ve never broached the subject of Business Intelligence.
Because we’re not a tech or software company.
Our speciality is the translation of technical expertise and experience into clear communication. So far, our trend reports have translated our own knowledge and foresight, but we understand that businesses need more than just guidance on brand and communication to excel.
To extend the usefulness of these trend documents, we’ve collaborated with our tech partners at Cleverbit Software to deliver this report on a tool that can be the difference between surviving and flourishing for businesses of all sizes: BI. If you’re new to the field, we recommend taking a look at Cleverbit’s own content on the subject. They literally wrote the book on Business Intelligence.
But if you’re aware of the essentials, and are looking at what the next year has in store, keep reading.
Business Intelligence in 2024: Data Quality, Governance, and AI-Driven Trends
As we journey through 2024, the landscape of Business Intelligence (BI) is undergoing a transformation that is both profound and multi-dimensional. This transformation is not just about the adoption of advanced technologies; it’s an evolution in the very ethos of how businesses interact with data.
Businesses who have already invested in business intelligence software will have an edge above their other competitors, having been grandfathered into the functions of business intelligence before this point, however despite the significant expansion within the BI industry, 2024 makes it far more accessible to companies who haven’t yet taken the plunge – and a far greater need. Significantly more than in previous years, business intelligence software is no longer something that can be put aside because of the expense: the staggering quantity of data that is heading to business in 2024 is impossible to parse using humans.
Main BI Predictions for 2024
- Explainable AI to reinvigorate the way businesses consume and manage data.
- Natural language processing will increase the amount of data sets available.
- Collaborative BI technologies will be on the rise, leading to a greater proportion of cloud-based BI systems.
- Renewed importance for data quality and data governance.
- The unavoidable implementation of democratic data.
Trend 1: AI will reinvigorate the way businesses consume and manage data
AI has already made an indelible mark on the business intelligence industry, however in 2024 this is going to go a step further. As organisations gear up to adapt to an exponentially larger amount of data, AI is going to provide the much-needed clarity and understanding that organisations need. Explainable AI is easy to understand – flexible in how it is used and applicable to various use cases, allowing for any member of the organisation to understand the insights that the AI model provides and also how it came to those results.
The integration of AI in BI tools is not just about automating tasks; it’s about uncovering insights that would be impossible for humans to find. AI algorithms are now capable of identifying patterns in vast datasets, offering predictions and recommendations that guide strategic decisions. This AI-driven approach is transforming industries, from retail where it’s used for personalised marketing, to finance where it’s revolutionising risk assessment.
AI features in BI tools are a game-changer for businesses. Features like predictive analytics, AI-generated reports, and natural language queries are making it easier for users to interact with data and derive valuable insights. These tools are becoming more adaptive, learning from user interactions to provide more relevant insights, which in turn streamlines the decision-making process.
- By 2025, more than 60% of industries will adopt easy-to-understand AI techniques in their business intelligence processes.
- By 2027, the global AI market will grow at a CAGR of 40.5%.
- 84% of business leaders consider AI as fundamental to drive growth objectives.
Why is this important?
Data is always getting bigger, and as more AI models come into the fray, data is no longer just embedded in reports from integrated machines, but also in text, speech, images, and music. If it exists, an AI can analyse it – and at this stage, the amount of data available is so significantly larger that humans will struggle to know where to start, much less to analyse it.
Trend 2: Natural language processing widens the available data for most businesses
Natural language processing (NLP), a subfield of artificial intelligence, analyses natural language data such as texts, speech, and images; this then allows humans to ask questions of the system using natural language. Going hand in hand with the above trend, NLP in BI means that anyone across the organisation can take insights provided by BI software, and ask a few simple questions to get a few simple answers. It can understand user intent and interpret preferences according to the user, so any question can be answered within a few short seconds.
Why is this important?
A key issue of adopting any kind of new technology is the widening skills gap in employees; while businesses have the capacity to adopt as many new technologies as their budget allows, finding people who know how to efficiently and accurately use that same technology is a much harder matter, leading to the same issues that made them adopt those technologies in the first place. Without someone to interpret and explain those results, they are no closer to understanding their insights. This effectively makes it a non-issue, as anyone with even basic technical skills can understand NLP-based insights.
Trend 3: Collaborative BI technologies
Although it’s been a couple of years since COVID-19, the fallout is still very much impacting businesses. During the height of the pandemic, on-premises BI solutions couldn’t withstand the pivot to a largely remote workforce, necessitating the rapidfire adoption of cloud-based BI systems. At this stage, nearly all BI and data analytical elements have been shifted to the cloud, allowing your employees to access the data they need wherever they are.
- 40% of all workloads are already in the cloud.
- 45% of consumers consider cloud business intelligence critical.
- Cloud analytics solutions held 68% of revenue share, and this figure is slated to grow.
Why is this important?
The growing popularity of cloud-based systems opens up new opportunities for data analytics. As we move further and further away from the COVID-19 pandemic’s fallout, the changes to business will stay – especially the flexibility of cloud-based solutions.
Beyond flexibility, cloud analytics are also overall cheaper to run, which means SMEs may find it a more accessible option for business intelligence solutions. Additionally, the cloud-based model can work out cheaper for smaller businesses, as it would allow them to access their data and analytics with a cloud-based service pricing model, rather than creating an internal IT infrastructure from scratch.
Trend 4: Prioritising data quality governance and security
As data gains importance, so does the importance of its security and governance. Advanced encryption techniques, data masking, and access control mechanisms are being implemented to protect sensitive data. Additionally, with the advent of technologies like blockchain, data governance is becoming more transparent and secure, ensuring that data is not just safe but also ethically managed.
As a result, data quality management transcends basic accuracy. It’s about creating a framework where data is not only precise, but also fit for its intended use. With regulations like GDPR, the need for compliance adds another layer to data governance, making it a strategic priority for businesses. Advanced data governance tools are being leveraged to automate compliance, ensuring data is not only clean but also legally compliant.
Why is this important?
With every passing year, the amount and complexity of data that we have at our fingertips grows considerably, and so do the laws governing the use of that data. While legal ramifications take a longer time to catch up to the pace of technology, it always does eventually, and companies will need to comply with that data if they wish to remain in operation. Additionally, security issues can ruin a company – all it takes is one security breach, and a wealth of data will end up on the internet. As a result, companies need to prioritise both the quality of the data that they have, and maintain high security regulations to protect that data.
Just how critical is data quality?
For a business to run efficiently, ensuring its data quality is of the highest standards is essential to mitigate operational and decision-making risks. If the data is fragmented, biased, or lacks integrity, it can have a profound impact on the overall business success. Duplicate entries, inaccuracies, or inconsistencies can lead to bias and misunderstanding of the situation for the company, and decisions made can steer the business in the wrong direction
For businesses that need that data for decision-making, this can be catastrophic.
Trend 5: Democratic data
There are two ways in which data is democratised in 2024.
The first is the establishment of a data-driven culture: this requires more than just access to data; it requires a mindset shift. Businesses are investing in training programs to imbue their workforce with data literacy, ensuring that every decision, from the C-suite to the operational level, is backed by data.
The second are self-service analytics tools. Self-service analytical tools are breaking down barriers between data and decision-makers. These tools are becoming more intuitive, with user-friendly interfaces and natural language processing capabilities, enabling users to ask questions and receive insights in plain language.
Why is this important?
This is fostering a more agile decision-making process, where insights are not bottle-necked in the IT department but are accessible to all who need them. As a result, businesses heading into 2024 and beyond have a much greater portion of their employees involved and aware of the daily decision-making processes, which leads to better operations overall.
Conclusion
The BI landscape in 2024 is a blend of technological advancements and cultural shifts. It’s not just about adopting new technologies – it’s about embracing a new way of thinking about, and interacting with, data. By integrating AI, prioritising data governance, and democratising data access, businesses can unlock the full potential of their data, driving innovation and maintaining a competitive edge in a rapidly evolving digital world.
If you are looking for a tech partner to help you navigate the world of BI and data, get in touch with our partners at Cleverbit Software. Their team specialises in guiding businesses through their data analytics and visualisation journey, bringing tangible business insights to the forefront. Find out what a BI solution could do for your business with a no-strings-attached consultation and workshop with their team.
