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Are business analysts at risk from AI? 

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Since AI has gained popularity, there's been a growing sense of insecurity about it replacing human labour and costing people their jobs. While, of course, there are some specific roles where AI may reduce headcount, it's important to take a more balanced view of how extensive these changes will be and when they should be a real cause for concern. If history teaches us anything, every significant technological advancement—whether it's the invention of computers or the rise of robotics—has sparked fears about job losses. However, these advancements have also consistently led to the creation of new job titles and fields.

Conducting a large-scale analysis of each job's potential to be replaced by AI is a pretty big task, so this blog will focus on AI's impact on business analysts.

Role of business analysts in organisations

The first step to evaluating whether AI might replace business analysts, is to identify what business analysts actually do. The exact responsibilities of business analysts vary somewhat from one organisation to another, but the core functions of the role are to gather and analyse business data, forecast trends, engage with relevant stakeholders, and help implement strategic initiatives. 

A good business analyst will need a strong knack for critical thinking, a deep understanding of their business domain, and the ability to come up with an actionable plan for effective results.

Impact of AI in business analysis 

AI has unlocked significant innovations in analysing data. Today, business intelligence tools can process large volumes of data in seconds without errors, a task that would have been impossible just a few decades ago relying on human input. AI can easily spot and identify trends and errors in complex data sets that may be too difficult for people to recognise, and visualise these trends to help human stakeholders make data-driven decisions more easily, contributing to long-term business success.

And the biggest upside is the AI is now within reach for everyone. Software vendors are making AI more accessible by integrating it with tools organisations use on a daily basis. For example, with a platform like Zoho Analytics, users can quickly analyse data, find trends, and easily generate reports and share them with others to facilitate collaboration. Zoho's AI-powered virtual assistant, Zia, can make it even easier by quickly providing conversational answers and insights in just a few clicks. So whether you are a small business owner or a BI expert at a multinational corporation, there are a number of ways you can use AI to speed up your everyday work.

How likely is it that AI could truly replace a business analyst? 

We've seen that AI has its fair share of pros and cons. While AI can do many things better than humans, it still lacks human intuition and situational awareness—qualities that remain crucial in the business world. Data is essential for informing business decisions, but emotional intelligence and responsiveness are equally important in decision-making.

For example, consider a situation where a company is launching a new product and faces unexpected market resistance due to reasons believed to be related to cultural values. While AI can analyse sales data and market trends and suggest ways to tackle low sales, a business analyst will be crucial to understanding the severity of the backlash. An analyst can conduct conversations to analyse the underlying, very human, reasons for the resistance and adjust the strategy accordingly. Business analysts also offer invaluable guidance during implementation. They can provide nuanced insights by factoring in feelings and emotions, which AI currently cannot fully grasp.

This is just one possible scenario where a human touch is needed, but it suggests that the future holds more interdependence between AI and humans. Humans need AI to automate routine, data-heavy tasks, while AI still relies on human emotional insight. With AI already changing the way many of us work, it's clear that business analysts have much to gain by learning to leverage AI to their advantage.

What's expected of business analysts will undoubtedly change in the coming years. But there is a silver lining: business analysts will be expected to take on increased responsibilities, with a focus on developing more accurate insights, guiding teams, and creating innovative strategies which make strong use of AI capabilities.

Read next: What business intelligence software can do for your business   

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