Increasing Adoption of Cloud-Based Technology and Artificial Intelligence Propel the Advanced Analytics Market
Advanced analytics is an automated or semi-automated form of examination of data/ content by using techniques to create results that can be useful for developing insight, making predictions or generating recommendations. It involves organizing, cleaning, interpreting, and forecasting data to create useful information that can influence the business/organization’s strategy and plan. Advanced analytics includes various methods like data mining, pattern matching, semantic analysis, sentiment analysis, machine learning, forecasting, multivariate statistics, graph analysis, complex event processing, visualization, semantic analysis, and neural networks.
Advanced analytics is mainly used for Big Data analytics, which is the processing of extremely massive amounts of data to uncover information, such as hidden patterns, correlations, customer preferences and market trends, that can help organizations make informed decisions. Big data is an important part of advanced analytics or data analytics because it will provide more effective marketing techniques, new revenue opportunities, and improved operational efficiency, to an organization It also provides improved forecasts, and strategic guidance, reduces bias, and decreases risk by providing the stakeholders of a company with predictive models and perspective guidance.
Business Intelligence (BI) is a form of advanced analytics that is used by businesses to improve their decision-making and forecasting through the use of data analytics. Some tools that make use of advanced analytics include Power BI, Tableau, Python, and many others. These tools provide the user with features that allow them to use the data acquired and organize the data to form useful information that can benefit the business or person. The real-world applications of advanced analytics include Fraud detection, enhanced marketing insights and prediction for growth opportunities. For instance, Microsoft Azure is a Data Analysis tool that helps in the detection of real-time fraudulent activity. The solution uses advanced data analysis techniques in real-time to observe fraudulent transactions or any other abnormal activity in real-time, which is then relayed to the user of Microsoft Azure.
One of the major players in the growth of the advanced analytics market is the increase in the adoption of cloud technology and increased technology penetration. This is because of the increasing data being produced worldwide from the increasing internet usage, which will further enhance the generation of insights into customer preferences in the market. For instance, IBM Cognos Analytics is a business intelligence tool that will provide enhanced decision-making with the implementation of Artificial Intelligence. The system automatically identifies any issue in the existing data and suggests ways in which the different data can be combined. Allowing the user to adapt and customize the datasets and dashboards as per the user’s requirements. This integration with artificial intelligence and machine learning helps the user gain valuable information and data patterns and provides clear visibility of the methods used to generate the information and forecasts.
The implementation and growth of artificial intelligence is another major growth driver for the advanced analytics market. Artificial intelligence is a type of machine learning system that can mimic a real human being’s way of thinking. Artificial intelligence has a wide variety of applications, a few of which include advanced healthcare, analysis & and visualization, predictions, Natural Language Processing (NLP), personalization, and so much more.
With the help of artificial intelligence, a large number of clinical data can be collected, which includes research, and public health data, to identify patterns and trends in the Healthcare sector. This enhances public health planning and also aids in the surveillance of the conditions of the patients or the public. Due to the wide range of benefits provided by artificial intelligence, there have been many investments made by companies to promote and increase development in Artificial Intelligence around the world. For Instance, IBM and Palantir collaborated to help businesses implement powerful and open AI applications, which unlocked valuable data across hybrid cloud environments. This allowed a vast amount of data to be collected and increased the efficiency of analysis in the healthcare sector as a whole.
The North American region is expected to witness growth in the upcoming years, with the United States leading the growth. As per the data processed by OurWorldinData.org, it has been shown that North America has the highest implementation of artificial intelligence, which is 59% of the total 1843 companies surveyed in 2022. This is due to the presence of major global players like the Oracle Corporation and IBM dominating the AI market with cloud-based solutions. This will have an impact on the growth of advanced analytics due to their dependency on each other. It also shows that there has been an increase from US$162.92 billion in 2020 to US$220.83 billion in 2021 in investments globally, with the United States being the major contributor.
Figure 1: Annual Private Investments in Artificial Intelligence, United States, China and the United Kingdom, 2020 and 2021
(in Dollar Billions)
Source: Center for Security and Emerging Technology (2023), OurWorldInDara
Key Developments:
March 2023: NVIDIA has selected Oracle Cloud Infrastructure (OCI) as the first hyperscale cloud provider to offer NVIDIA DGX Cloud, an AI supercomputing service, at a large scale. In addition to this, NVIDIA has also added their generative AI cloud services known as NVIDIA AI Foundations, which are available through the DGX Cloud. This provided an opportunity for AI-driven innovation can transform every business and will be available to every enterprise for use.
March 2023: Luxoft and ITRS announced the launch of a strategic collaboration that was aimed at developing and delivering advanced monitoring tools for capital market platforms and banking. This combined solution provides a comprehensive view of the cloud-based systems that can help banks overcome the challenges of the ever-changing technological landscape and enables clients to mitigate risks, maintain compliance and enhance resilience.
November 2021: AWS and Goldman Sachs announced a collaboration to create a Data Management and Analytics Solution for Financial Services Organizations, dubbed Goldman Sachs Financial Cloud for Data with Amazon Web Services (AWS). This new suite contains cloud-based data and analytics solutions for financial institutions and helps clients in discovering, organising and analysing data in the cloud, which will provide rapid insights and drive informed investment decisions. This collaboration reduced the need for the investment firms to develop and maintain foundational data integration technology.
