After participating in a series of webinars dedicated to artificial intelligence and its applications in our industry, we came across an important reflection, which we thought we would share. Increasingly, in fact, we noticed that there are proposals to use AI as a replacement for market research. And this concerned us.
The underlying problem, in fact, lies in the confusion between analytics and market research: two concepts that, while related, are by no means interchangeable.
Let's look at the differences in detail!
Market analysis is a study activity that aims to understand the competitive environment and dynamics of a particular industry. A process that collects, processes and interprets quantitative and qualitative data in order to provide a detailed view of the market. Thus, its main components consist of:
In other words, according to ChatGPT itself, whom we interviewed, market analysis is “like looking into a rearview mirror: it shows you what has happened, what dynamics have shaped a particular market, and what trends have emerged.”
In fact, it relies mostly on secondary sources, i.e., existing data, such as industry reports, research institute studies, statistical databases, and publicly available information.
Market research is a much more focused, dynamic and personalized process. Unlike market analysis, which relies on already available data, market research gathers novel information through specific methodologies. In fact, once a company, for example, exposes a specific issue to us, it begins an articulated process that involves:
Here ChatGPT describes market research as a “journey of exploration: it does not just observe what is already known, but goes out to discover new information, perspectives and deeper understandings.” This, in short, allows for validating hypotheses, testing strategies, and making informed decisions based on reliable and up-to-date information.
Artificial intelligence is revolutionizing both market analysis and market research, but with different approaches and functions.
✅ AI and Market Analysis
AI can process large volumes of data from different sources, identifying trends, correlations and patterns quickly and efficiently. With advanced predictive models, it can automate information gathering and support market segmentation, offering strategic insights in real time.
✅ AI and Market Research
In the context of market research, artificial intelligence optimizes data analysis, helps identify differences between audience segments, and can even generate content such as automated reports or podcasts. (We discuss this in detail here!)
📌 Understanding and not forgetting this distinction is crucial to avoiding strategic mistakes and knowing how to make the most of the relative benefits of AI. However, we are convinced: the human component remains essential. Only careful analysis can ensure accurate data interpretation, design effective research, and capture the emotional and behavioral nuances of consumers!
Watch the video below and learn how AI is transforming the world of qualitative research! 🚀
