AI and data: TGT ISG study reveals challenges and opportunities in the Brazilian analytics market

According to the new edition of the ISG Provider Lens study Advanced Analytics and AI Services 2024 for Brazil, produced and distributed by TGT ISG, companies in Brazil are making significant progress in the adoption of AI and showing greater maturity in their data-driven approaches. However, service providers still face two major challenges: adapting solutions to different levels of analytical maturity of customers and implementing effective data governance, also demonstrating return on investment.

The report reinforces that analytics service providers in Brazil are making significant progress in the adoption of AI. However, there are still challenges to be overcome, especially in relation to the diversity of analytical maturity levels of customers. “This year's study highlights the ability of service providers to deal with this diversity. In this context, maturity assessment methodologies have gained importance”, comments Marcio Tabach, distinguished analyst from TGT ISG and author of the study. According to him, service providers need to promote workshops and training so that customers achieve the expected results in projects. Data literacy training is crucial for the success of these initiatives.

“Advanced analytics and AI services have been widely debated in the media due to the potential to increase business efficiency and productivity, as well as risks for organizations and society. Much of this controversy comes from the rapid adoption of generative AI (GenAI). The discussion around AI plays a key role in transforming the business mindset in Brazil, evidencing a more advanced understanding of the relevance of data-driven decisions and the need for a data-driven approach to ensure the competitiveness of”, he explains.

The adoption of GenAI further increased the need for data governance programs, as the technology works with unstructured data such as contracts, emails, and call center recordings.When data science was restricted to structured data such as databases, it followed a certain level of governance, including information security, restricted access, and data lake storage.

“Last year's study already indicated that governance plays a key role in organizations' data journey.This year was no different. Many service providers reported challenges at different levels of their customers' analytical maturity.There are many cases where data is stuck in silos, in the cloud or on-premises, and some spread across different systems and files of the company”. Although data governance has a significant role in technology-based companies, much learning is still needed in non-technology companies.  

Another step toward modernization includes building GenAI agents that enable data navigation through natural language interfaces. “With these agents, users can ask data-related questions and obtain automated graphs and answers without the need for complex calculations or data manipulation. These modernization approaches can empower citizen data scientists, business professionals who use data to support” decision-making.

The ISG Provider Lens Report 2024 for Brazil evaluates the capabilities of 45 suppliers in six quadrants: Data Science and AI Services (Large, Data Science and AI Services 2024 for Brazil Advanced BI and Reporting Modernization Services 2024 for Brazil, Data Modernization Services (Midsize, Advanced BI and Reporting Modernization Services & Advanced BI and Reporting Modernization Services & Midsize.

The report names Accenture, BRQ, Cadastra, Compass UOL, Dataside, GFT, NTT DATA and Rox Partner as Leaders in three quadrants each. It names Deloitte, Falconi, Logicalis, MadeInWeb, Peers, Stefanini and TIVIT as Leaders in two quadrants each. A3Data, BRLink, Dedalus, Eleflow, IBM, Keyrus, Kumulus, Maxxi and UniSoma are named Leaders in one quadrant each.

In addition, DXC Technology, Eleflow, Falconi, Maxxi, PwC and Stefanini are named as Rising Stars & Companies with a promising “portfolio and “high potential future” by defining ISG & in one quadrant each.

Custom versions of the report are available at Dataside, Falconi, MadeInWeb, Maxxi, Peers and Rox Partner's.