Generative AI is reshaping analytics, making insights more accessible, and automating complex tasks. But while it’s unlocking new efficiencies, it also comes with challenges. Here’s where Gen-AI is making an impact - and where human expertise remains essential.
Leveraging Gen-AI in Product Analytics:
?? Write SQL/Python for me – A popular use case of Gen AI today. Some companies report that AI-generated SQL reduces analyst time spent on SQL by 40%. Debugging can take time, and the business context of the output needs to be validated.
?? Ask Questions & Get Graphs – Business users can query data in plain language, getting visual insights instantly. Gen AI works well in 80+% of cases if you have a strong semantic layer.
?? Ask Questions in Free Language and Get Insights – A powerful use case, helping teams gain insights - such as why KPIs are going down, how many users utilize a particular feature, or why users are dropping in a certain step.
?? Surface Insights Proactively – Leverage Gen AI to automatically surface and deliver insights, proactively revealing high-impact opportunities you didn’t know, nor asked about.
?? Explain the Analysis – AI-generated narratives bridge the gap between data teams and stakeholders.
?? But...Context is King
The key to success in leveraging AI in analytics is context. You should treat AI like a new team member - you need to train it using all your documentation, the KPI catalog, code comments, decks, etc. In many cases, AI is a mirror of the health of your analytics setup. If you do not have clear definitions, a solid semantic layer, and tracking you can trust, then the output of Gen AI will reflect poor context and not make sense.
?? What Gen-AI Can’t Replace
At Loops, we see that Gen-AI is making a valuable contribution, helping automate repetitive, often tedious tasks like querying data, generating reports, and identifying surface-level trends - but the most critical aspects of analytics, those that require deep research and context, remain human-led.
?? A Pivotal Year Ahead
In 2024, the retention for AI analytics features was very low. User expectations ran super high, but the underlying LLM technology was still evolving. With the current progress and given the right context, I believe 2025 will be a pivotal year in terms of both the use and value of leveraging AI analytics applications.
?? Stay tuned for my next post in this mini-series on Gen-AI, where I’ll cover what top analysts will focus on to thrive in this new era.
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