Analytics software is rapidly evolving into an AI-powered strategic asset that organizations across industries now rely on for competitive advantage, according to new research released by Information Services Group (ISG). As data continues to shape every layer of modern business, companies increasingly depend on advanced analytics to plan operations, align IT with business goals, and make faster, more informed decisions.
To begin with, ISG’s latest findings emphasize that analytics has moved far beyond traditional reporting. Today, organizations use analytics to source and prepare data, collaborate across teams, generate predictive insights, and guide planning, forecasting, and performance management. Consequently, advanced analytics powered by artificial intelligence and machine learning has become foundational to enterprise strategy.
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The ISG Buyers Guide for Analytics, developed by ISG Software Research, evaluates and ranks 21 analytics software providers across a wide range of capabilities. In parallel, the Buyers Guide for Analytics Emerging Providers assesses 12 next-generation vendors that are shaping the future of analytics innovation. Moreover, ISG has published complementary Buyers Guides focused specifically on AI-driven analytics, examining both established vendors and emerging players delivering AI-powered solutions.
In addition, ISG released industry-specific Buyers Guides that address the unique analytics needs of healthcare, manufacturing, and retail organizations. These reports highlight how industries with complex data environments require specialized analytics software tailored to specific data sources, use cases, and strategic decision-making processes. As a result, both large platform providers and niche specialists are introducing targeted tools with increasingly sophisticated AI features.
“Data now drives all aspects of business, and companies must use analytics to understand and plan operations across both the business and IT domains,” said David Menninger, executive director of AI and IT research, ISG Research. “Advanced analytics based on AI and machine learning is becoming foundational, with almost two-thirds of enterprises using ML now and three-quarters planning to use it more in the future.”
Furthermore, ISG’s research reveals that AI and machine learning extend analytics beyond historical analysis by enabling classification, prediction, and recommendation of actions that improve operational outcomes. Generative AI, in particular, is transforming data preparation the most time-consuming phase of analytics by suggesting steps that reduce reliance on IT teams. As a result, business users can independently analyze data with greater confidence. By 2027, ISG expects nearly all business intelligence software providers to embed augmented intelligence powered by generative AI, making analytics more accessible and impactful.
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For its 2025 Buyers Guides for Analytics, ISG evaluated vendors across four platform categories: Analytics, Collaborative Analytics, Developer Analytics, and Mobile Analytics. Oracle, Domo, Databricks, Microsoft, SAP, Salesforce, and several others emerged as Overall Leaders and Exemplary providers across multiple categories. Similarly, in the 2025 Buyers Guide for AI Analytics, Oracle secured the top Overall Leader position, followed by Databricks and Domo.
Among emerging providers, Pyramid Analytics, Kyvos, and Sigma stood out as Overall Leaders in both Analytics Emerging Providers and AI Analytics Emerging Providers. Meanwhile, industry-specific guides once again positioned Oracle as the top Overall Leader across healthcare, manufacturing, and retail analytics, reinforcing its strong presence across vertical markets.
“Analytics has significantly expanded to become an engaging software category that delivers intelligence and guidance for enterprises to become more action-oriented,” said Mark Smith, partner and chief software analyst, ISG Software Research. “This comprehensive research brings together deep insights, ratings and rankings in analytics to enable organizations in any industry to assess and choose software providers.”
Notably, ISG emphasized that the Buyers Guides are the result of more than a year of independent market and product research. The firm conducts this research without sponsorship or influence from software vendors, ensuring unbiased insights that help enterprises optimize their business and IT software investments.
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