Big Data Is Growing Fast And Is Being Transformed By AI

July 2, 2024  |  Mark Hillary

One of the most interesting aspects of modern technology, and how it is used in businesses across all industries, is the way that some services act like a foundation. The storage and processing power available from cloud computing is an obvious example, but services such as big data, and the analytics that become possible with a big data strategy, are increasingly becoming essential for many companies.

Big data is also growing fast. Even in the fast-moving tech industry it is like a beacon of ingenuity and innovation where change is taking place at an extremely rapid pace. The market size is reaching USD 348.21 billion in 2024, with projections indicating a robust trajectory ahead — estimates suggest USD 924.39 billion by 2032. This surge is underpinned by a compound annual growth rate (CAGR) of approximately 13.0% during the forecast period.

Just look at this predicted growth. Analysts are talking about the use of big data almost tripling from now to 2032. I found a paper by IDC from last year commenting on this: “One of the key drivers of growth will be the emergence of generative AI. All the biggest players in this market have already announced the addition of various generative AI solutions into their big data and analytics portfolio — including AWS Sagemaker, Salesforce Einstein, Azure Open AI Service, and Oracle Data Safe,” says Veronika Paal, senior research analyst with IDC European Software Data & Analytics.

So the market for big data and analytic systems is not just growing, it is also transforming at the same time through the use of generative AI. This is an important trend to be aware of because a service like this cuts across all companies that are using big data to generative insight.

Insight is the main driver here. Companies want to analyze how customers behave in certain situations and learn more about how to increase sales or reduce costs.

The key advantage with AI here is that it can even automate this process of exploration. The AI can start learning about your business purely from the data — it can try to generate connections and insights without a human operator asking questions such as ‘what happens to our sales when it is raining?’

Imagine the importance of this automation to a retail company, just as one example. Set the AI loose on a history of how customers made purchases, how they browsed for information, and how they used their shopping baskets, then add some external data to explore connections to events or the weather. The AI can create the hypothetical questions and can test for them over and over again, finding connections and insight that a human analyst might never see.

This is a very powerful and practical example of how big data is shaping the way that companies make decisions, but also how the process of managing and using big data is itself also in transformation at present.

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