Analytics have always been a lifeline for ecommerce merchants, providing them the information they need to make decisions and keep operations rolling. For a while, dashboard-based analysis worked, but as data increased, operations became more sophisticated, and decision cycles shortened, the cracks in dashboard-based analytics began to show.
Setting aside the issue of data silos covered elsewhere, dashboard-based analytics failed in three core ways:
As a result of these issues, traditional dashboard-based analytics forced business users to spend hours trying to make data-driven decisions, or hire data teams to implement new reports, often lagging as new dashboards and data features were developed to answer the questions of the business user. Neither approach scaled well, especially when decisions need to happen quickly.
The Promise of AI
With the advent of new AI capabilities, ecommerce merchants and SaaS providers in the ecommerce space rushed to see how AI could solve the pain points of a dashboard-based analytics approach.
Many merchants download a raw dataset from a dashboard in their ecommerce platform and upload it to AI-based interfaces like ChatGPT. When you compare this to the old spreadsheet style approach, users can extract insights in minutes instead of hours.
But could AI solve the other two issues raised above? What if the right dataset isn’t available in the standard dashboards? Could AI assist in pulling this together? And if so, could AI ensure the right business context to ensure the accuracy of the data and resulting analysis?
There was quite a bit of interest for AI copilots early on, as organizations started putting them on top of their existing data and hoped for the best. Unfortunately, as these AI solutions went into play, the results were often disappointing because the model was missing context. Trust was also difficult to establish, since many systems would return answers while methodology went missing or was difficult to interpret. Without visibility into how conclusions were reached, responses were viewed hesitantly even when technically correct.
Building a modern analyst: how natural-language AI changes how teams work with data
At the end of the day, the ideal state for a business user is to ask a question in natural language, and be presented back with a complete solution including methodology, engendering trust and confidence in the results.
A quality analyst was already solving this need, albeit with a lag time. What were the traits that make the analyst effective?
To break the paradigm of dashboard based reporting, AI needs to be equipped with these same abilities, but at machine speed versus human speed.
Reasoning directly against governed internal data
An AI-based analytics approach can start at the same natural language question jumping off point, but rather than relying on shared or abstracted reporting layers in a BI tool with its slow implementation cycles, brands need an architecture that allows AI to reason directly against governed data.
Cloud software providers such as Google, Snowflake or Databricks have made it easier to deploy text-to-sql capabilities translating natural language text to SQL and effectively datasets for human use. This jailbreaks the data from the constraints of a traditional BI tool, requiring developers to model data before it can be accessed. But even with these off the shelf tools, additional care is required to allow AI to accurately and efficiently pull data.
To inform the models how to get to the right data, two additional pieces need come into play:
Armed with this information, AI can begin to operate like an analyst, with knowledge of the business to apply key constraints, access to the full dataset through SQL without requiring additional report buildout, and the inherent capabilities of the LLM to reason on top of this data.
The last essential part to replicating an analyst is how AI interfaces with the business user. Instructing the underlying agent to mimic the presentation skills of analysts is a start, but there is also an opportunity to fine craft the user interface to allow the solution to unfold assumptions and methodology as desired by the user.
The goal of conversational AI interfaces is to reduce translation rather than hide complexity. Teams will ultimately be more confident in the results they receive when AI models are able to easily show their logic and approach, allowing business users to interact on their own terms.
Looking ahead: Implications of conversational AI for analytics
When paired with strong governance and business context, conversational AI is on the cusp of supplanting traditional dashboard-based analytics as the primary means for a business user to make data-driven decisions.
Analysis becomes more fluid with teams able to test assumptions without waiting for report updates or custom builds, and unplanned questions no longer disrupt existing workflows.
Roles sharpen as analysts spend less time responding to ad hoc requests and more time focusing on governance and accuracy, while business users gain more autonomy while remaining within approved boundaries. Collaboration improves because both groups operate from a common base.
And ultimately, data is more accessible to help guide decisions across the entire business.