AI Transforms Analytics Into a Strategic Engine for Enterprise Decision-Making, ISG Research Finds
Analytics software is rapidly evolving into an AI-powered strategic asset that is reshaping how organizations compete, plan, and operate across industries. According to new research from Information Services Group (ISG), a global AI-focused technology research and advisory firm (Nasdaq: III), analytics platforms are no longer limited to reporting and dashboards. Instead, they are becoming intelligent systems that enable enterprises to prepare, interpret, and act on data with greater speed, accuracy, and autonomy.
ISG’s latest findings are detailed in the 2025 ISG Buyers Guide™ for Analytics, produced by ISG Software Research. The guide evaluates and ranks 21 analytics software providers across a broad spectrum of capabilities, reflecting the growing complexity and strategic importance of analytics in modern enterprises. Complementing this research is the Buyers Guide for Analytics Emerging Providers, which assesses 12 next-generation companies delivering innovative analytics solutions at the forefront of AI-driven development.
Expanding Scope of Business Intelligence
The research highlights a fundamental shift in enterprise expectations for analytics software. Business intelligence requirements now extend far beyond traditional reporting and visualization. Organizations increasingly expect analytics platforms to support data sourcing, team collaboration, predictive and prescriptive insights, and advanced use cases such as planning, forecasting, and performance management.
To address these demands, ISG also released a series of Buyers Guides focused specifically on AI-powered analytics. The Buyers Guide for AI Analytics evaluates how established providers are integrating artificial intelligence into their analytics platforms, while the AI Analytics Emerging Providers Guide examines specialized vendors delivering AI-native solutions.
In parallel, ISG published industry-specific analytics guides recognizing that different sectors require tailored tools. Separate Buyers Guides cover analytics solutions for healthcare, manufacturing, and retail, each with unique data environments, regulatory requirements, and operational priorities.
AI and Machine Learning Become Foundational
Data now drives every aspect of business, and organizations must use analytics to understand and plan operations across both business and IT domains,” said David Menninger, executive director of AI and IT research at ISG Research. “Advanced analytics built on AI and machine learning are quickly becoming foundational. Nearly two-thirds of enterprises are already using machine learning today, and three-quarters plan to expand its use in the coming years.
According to ISG, AI and machine learning extend analytics beyond descriptive insights by enabling systems to classify patterns, predict outcomes, and recommend actions. Generative AI, in particular, is transforming one of the most resource-intensive aspects of analytics—data preparation. By suggesting steps to clean, integrate, and model data, GenAI reduces dependence on IT teams and empowers business users to conduct analysis independently.
ISG predicts that by 2027, nearly all business intelligence software providers will embed augmented intelligence capabilities powered by generative AI. This shift will make analytics more accessible while accelerating time-to-insight. Machine learning is already helping enterprises analyze product usage, enhance customer experiences, and identify new growth opportunities faster than traditional methods.
Industry-Specific Analytics Gains Momentum
Industries that rely heavily on data-driven decision-making—including healthcare, manufacturing, and retail—are increasingly turning to specialized analytics software designed for their specific operational needs. These sectors demand platforms that can integrate diverse data sources, support complex workflows, and align analytics with strategic planning.
Both large platform vendors and niche specialists are responding by developing targeted solutions that incorporate AI-driven capabilities. ISG’s industry-focused Buyers Guides assess how effectively providers address these sector-specific challenges.
Evaluation Framework and Provider Coverage
For its 2025 Buyers Guides™ for Analytics, ISG evaluated providers across four major platform categories: Analytics, Collaborative Analytics, Developer Analytics, and Mobile Analytics. The 21 providers assessed include Alibaba Cloud, AWS, Cloud Software Group, Databricks, Domo, Epicor, Google, IBM, Infor, insightsoftware, Microsoft, OpenText, Oracle, Qlik, Salesforce, SAP, SAS, Sisense, Strategy, ThoughtSpot, and Zoho.
Providers were rated across five evaluation categories: Overall, Product Experience (including Capability and Platform), and Customer Experience. Those ranking in the top three within a category were designated as Leaders, while providers earning the highest number of Leader rankings within a platform category were named Overall Leaders.
2025 Analytics Platform Leaders
- Analytics: Oracle emerged as the top Overall Leader, followed by Domo and Databricks. All three were rated Exemplary, along with AWS, IBM, Microsoft, Qlik, Salesforce, and SAP. Google and Strategy were recognized as Innovative.
- Collaborative Analytics: Domo led the category, followed by Oracle and SAP. All three were rated Exemplary, alongside IBM, Microsoft, Qlik, Salesforce, ThoughtSpot, and Zoho. SAS and Strategy were rated Innovative.
- Developer Analytics: Oracle ranked first, followed by Domo and Databricks. These providers were rated Exemplary along with IBM, Microsoft, Qlik, Salesforce, and SAP. SAS, Sisense, and Strategy were rated Innovative.
- Mobile Analytics: Domo led the category, followed by Oracle and Microsoft. Other Exemplary providers included IBM, Infor, Qlik, Salesforce, SAP, ThoughtSpot, and Zoho. Strategy was rated Innovative.
Leaders in AI Analytics
In the 2025 Buyers Guide for AI Analytics, Oracle was named the top Overall Leader, followed by Databricks and Domo. All three were rated Exemplary, along with AWS, IBM, Microsoft, Qlik, Salesforce, SAP, and Zoho. Strategy earned an Innovative rating.
Among emerging providers, Pyramid Analytics led both the Analytics Emerging Providers and AI Analytics Emerging Providers categories, followed by Kyvos and Sigma. These companies were consistently rated Exemplary, with several others recognized for innovation.
Industry-Specific Leaders
- Healthcare Analytics: Oracle led the category, followed by Databricks and InterSystems.
- Manufacturing Analytics: Oracle ranked first, followed by Microsoft and SAP.
- Retail Analytics: Oracle again topped the rankings, followed by SAP and Microsoft.
Analytics as an Action-Oriented Discipline
“Analytics has evolved into a highly engaging software category that delivers intelligence and guidance, enabling enterprises to become more action-oriented,” said Mark Smith, partner and chief software analyst at ISG Software Research. “This research brings together deep insights, ratings, and rankings to help organizations across industries assess and select the analytics solutions best suited to their needs.”
The ISG Buyers Guides™ for Analytics represent more than a year of independent market and product research. The studies are not sponsored by software providers and are designed solely to help enterprises optimize their technology investments.
Executive summaries of all seven reports are available through ISG Software Research, with full reports accessible upon request.
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