Enterprises in Europe Leveraging Cognitive AI for Data Insights, ISG Study Finds

Rhea-AI Summary

Information Services Group (ISG) has released new research reports highlighting how European enterprises are embracing cognitive AI to transform their operations and decision-making processes. The 2024 ISG Provider Lens™ Advanced Analytics and AI Services reports reveal that companies are increasingly adopting an AI-first approach, treating data as a strategic asset to address industry challenges, supply chain disruptions, and economic uncertainties.

The reports evaluate 53 large and midsize providers and 25 specialist providers across various service quadrants. Key trends include the growing importance of AI ethics and compliance, the emergence of specialist providers offering responsible AI solutions, and increased development of verticalized AI solutions. The analytics services market is experiencing continued growth, driven by technologies like generative AI, with providers developing innovative frameworks and customizable solutions for automating AI insights.

Notable Leaders in multiple quadrants include Accenture, Capgemini, Cognizant, and several other major firms, while DXC Technology earned recognition as the global ISG CX Star Performer for 2024.

Positive

• Growing market for analytics and AI services driven by technological advancement
• Emergence of specialist providers offering compliant, responsible AI solutions
• Development of innovative frameworks and customizable AI solutions
• Increased focus on data-driven decision-making and operational efficiency

Negative

• None.

Insights

Market Research Analyst

This research publication represents a significant strategic positioning for ISG (III) in the rapidly evolving European AI services market. The report's findings illuminate three critical business implications:

1. Market Leadership & Revenue Potential
ISG's position as a leading technology research firm is strengthened through this comprehensive market analysis, covering 53 large/midsize providers and 25 specialist providers. This extensive coverage demonstrates ISG's deep market penetration and ability to monetize industry insights through research products.

2. Strategic Value Proposition
The report's focus on cognitive AI and advanced analytics aligns perfectly with enterprise digital transformation priorities, particularly in:

• Risk forecasting and economic modeling
• AI governance and compliance frameworks
• Real-time data transformation capabilities

3. Competitive Differentiation
ISG's detailed provider assessment methodology, combined with their Voice of the Customer survey and Star of Excellence™ program, creates multiple revenue streams through:

• Subscription-based access to research
• Customized report versions for vendors
• Advisory services for implementation guidance

The report's timing and focus on European markets is particularly strategic given the region's stringent AI regulations and growing demand for compliant AI solutions. This positions ISG favorably for capturing advisory opportunities as enterprises navigate complex AI implementation challenges.

Service providers play a pivotal role in data-to-insight transformation, ISG Provider Lens™ reports say

LONDON--(BUSINESS WIRE)-- Enterprises in Europe are adopting cognitive AI principles to revolutionize operations and planning and foster a culture of AI-enabled decision-making, say new research reports published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Advanced Analytics and AI Services reports for Europe say industry-specific challenges, supply chain disruptions, macroeconomic uncertainties and stringent sustainability practices are driving enterprises to utilize deep forecasting and economic modeling techniques to proactively forecast, assess and mitigate risks. More organizations are addressing these struggles with an AI-first approach centered around data as a strategic asset.

“Enterprises are increasingly relying on data in decision-making, augmenting the power of cognitive AI and cloud computing,” said Diwahar Jawahar, principal consultant, Cognitive & Analytics advisory practice, EMEA, ISG Research. “By treating data as a strategic asset, they can reimagine their operations, strategy, innovation and CX and provide new avenues of growth.”

The analytics services market plays a pivotal role in modern business strategy, empowering enterprises with data-driven decision-making, operational efficiency and competitive advantages, the report says. The relevance of analytics and AI services continued to grow throughout the past year, fueled by the steady advancement of technologies such as generative AI (GenAI).

Providers in this space are innovating frameworks, accelerators, simulations and customizable AI solutions for automating the generation of AI insights, ISG Research says. These providers emphasize intensive development of machine learning models, making AI more integrated and efficient within business workflows.

Enterprises are now increasingly aware of risks related to AI ethics, compliance and governance, ISG says. An emerging group of specialist providers, dedicated to delivering highly compliant, responsible AI solutions, are emphasizing ML model governance, swiftly scaling customer engagements from proofs-of-concept to production in minimal time.

As a result, ISG researchers note the emergence of integrated knowledge graphs with GenAI and analytics tools, and an increase in the development of verticalized AI solutions, which together combine to solve unique operational challenges for enterprise customers.

“Prudent governance is required to drive AI development in modern data ecosystems and revolutionize the systems and platforms used for business decision-making,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers play a crucial role in helping their clients leverage applied AI solutions to transform data into actionable insights in real time, driving strategic growth and ROI.”

The reports also explore other trends, such as increased demand for customized, tailored user experiences. One way to deliver these experiences, the reports note, is with recommendation engines that suggest products, services and content to customers.

For more insights into how service providers are enabling their customers to improve their decision-making through smarter analytics and AI initiatives, see the ISG Provider Lens™ Focal Points briefing here.

For 2024, ISG Provider Lens™ has published two Advanced Analytics and AI Services reports for Europe: one examining Large and Midsize Providers, and a second that exclusively assesses Specialist Providers. The Large and Midsize Providers report evaluates the capabilities of 53 providers across six quadrants: Data Science and AI Services – Large, Data Science and AI Services – Midsize, Data Modernization Services – Large, Data Modernization Services – Midsize, Advanced BI and Reporting Modernization Services – Large and Advanced BI and Reporting Modernization Services – Midsize.

The Large and Midsize report names Accenture, Capgemini, Cognizant, Deloitte, EXL, GFT, HARMAN, HCLTech, Infosys, Merkle, Mphasis, Orange Business, Persistent Systems, Reply, TCS, T-Systems, Virtusa and Wipro as Leaders in three quadrants each. Hexaware is named a Leader in two quadrants.

In addition, Stefanini and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants each.

The 2024 ISG Provider Lens™ Advanced Analytics and AI Services – Specialist Providers report evaluates the capabilities of 25 specialist providers across three quadrants: Data Science and AI Services – Specialist, Data Modernization Services – Specialist and Advanced BI and Reporting Modernization Services – Specialist.

The Specialist report names Alexander Thamm, Fractal Analytics, Lingaro, MathCo, Quantiphi, SDG Group, Tiger Analytics, Tredence, Version 1 and WNS Analytics as Leaders in all three quadrants. In addition, Ancoris is named a Rising Star in all three quadrants.

In the area of customer experience, DXC Technology is named the global ISG CX Star Performer for 2024 among advanced analytics and AI service providers. DXC Technology earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from HCLTech, Lingaro, Orange Business, T-Systems and WNS.

The 2024 ISG Provider Lens™ Advanced Analytics and AI Services reports for Europe are available to subscribers or for one-time purchase on this webpage for the Specialist Providers report and the Large and Midsize Providers report.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129223214/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.

FAQ

What are the key findings of ISG's 2024 Advanced Analytics and AI Services report for Europe?

The report finds that European enterprises are adopting cognitive AI principles for operations and planning, with an AI-first approach centered around data as a strategic asset. Companies are using deep forecasting and economic modeling to address industry challenges, supply chain disruptions, and economic uncertainties.

How many providers were evaluated in ISG's 2024 Analytics and AI Services report (III)?

The report evaluated 53 large and midsize providers across six quadrants and 25 specialist providers across three quadrants.

Which companies were named Leaders in ISG's 2024 Advanced Analytics report?

Leaders include Accenture, Capgemini, Cognizant, Deloitte, EXL, GFT, HARMAN, HCLTech, Infosys, Merkle, Mphasis, Orange Business, Persistent Systems, Reply, TCS, T-Systems, Virtusa, and Wipro, among others.

What are the main trends driving AI adoption in European enterprises according to ISG (III)?

Key trends include increased focus on AI ethics and compliance, development of verticalized AI solutions, integration of knowledge graphs with GenAI, and growing demand for customized user experiences through recommendation engines.