How AI market research works and what advantages it offers

AI market research uses artificial intelligence to gain insights into relevant markets, market segments, trends and customer behavior. By using AI technologies, large amounts of data can be analyzed more quickly and more precise predictions can be made, which creates competitive advantages and facilitates strategic decisions.

What is AI market research?

Traditional market research is a subset of marketing research that concentrates on gathering, analyzing, and interpreting information about market conditions and emerging trends. By systematically exploring relevant submarkets, businesses can make well-informed decisions, gain a deeper understanding of their target audience and competitors, and identify market trends at an early stage. AI market research extends this process through the use of artificial intelligence technologies. The aim is to process and evaluate data faster and more precisely and to make new correlations visible. Various technologies are used for this purpose:

• Machine learning (ML) aims to enable computer systems to learn independently and continuously improve with the help of large amounts of data.
• Natural language processing (NLP) enables AI technologies to recognize, understand and generate human language.
• Computer vision enables algorithms to extract information from images.
• Predictive analytics uses statistical models and historical data to forecast future results or developments.

To date, market research with AI technologies has primarily been used to provide decision makers with valid recommendations for action. However, interpreting the results and deriving decisions is still largely the responsibility of humans.

What advantages does AI market research offer?

The use of artificial intelligence in market research offers numerous advantages that clearly surpass traditional methods. The most important advantages of market analysis using AI tools are as follows:

• Faster data processing: AI systems are capable of analyzing large amounts of data in a very short time, which speeds up the market research process considerably. Instead of weeks of manual analysis, results are usually available very quickly.
• Greater precision: Sources of error can be minimized through the use of advanced algorithms. AI recognizes patterns, trends and complex relationships that may be overlooked by manual analysis. In addition, AI models learn from historical data, continuously increasing their predictive accuracy.
• Automation of recurring tasks: AI market research offers the opportunity to automate standardized processes, such as collecting and sorting data or creating reports. As a result, workloads are reduced, allowing employees to focus on more strategic tasks.
• Customized analyses: Once the AI system has been trained, it can be applied to different data volumes and market segments. AI market analyses provide companies with customized results that are tailored to their individual needs.

Companies can use AI in market research to secure competitive advantages by conducting market analyses and competitor analyses more efficiently and precisely. The automation of many processes can also reduce costs in the long term.

How to conduct market research with AI

An AI-supported market analysis requires a structured and well thought-out approach. The following step-by-step guide will show you how to proceed in order to exploit the potential of artificial intelligence in market research:

1. Define objectives and requirements: Market research aims to answer questions relating to marketing. Therefore, it’s necessary to first define a problem and set clear objectives. Classic AI market research topics include identifying interesting target groups for a new product, analyzing trends and competitor analyses.
2. Define research design: The next step involves defining the information requirements and selecting an appropriate study design. The key focus is on determining how to gather the necessary data. This process includes identifying the target group, selecting the survey method, and pinpointing relevant data sources.
3. Choosing the AI tool: There are now numerous AI applications that are suitable for market research. Choose a tool that fits your requirements and offers the functions you need, such as text analysis and pattern recognition. When choosing, also consider ease of use, scalability and compatibility with existing systems to maximize the benefits.
4. Collect and process data: Collect relevant data from various sources, such as customer surveys and feedback, social media analyses or sales statistics, to generate a comprehensive database. As raw data is often incorrect or contains incomplete information, it’s advisable to cleanse and structure it to ensure high data quality.
5. Data analysis: Have the collected data analyzed by the selected AI tool to identify patterns and correlations or predict future trends. Thanks to machine learning algorithms, the quality of AI-supported data analyses and forecasts is constantly improving.
6. Interpret results and derive recommendations for action: Analyze the results and prepare the data visually to make it accessible. Use the insights gained to plan specific measures, such as developing new products or adapting the marketing strategy.

Use cases for AI market research

AI market research opens up a wide range of possible applications. Here are some areas of application with specific practical examples:

• Target group analysis: A beverage brand has developed a new product and is using AI to analyze data sets from customer surveys and social media to identify relevant target groups for its new drink.
• Trend analysis: A fashion company uses computer vision to identify the color and style trends of the coming season by analyzing images from social networks.
• Competitor analysis: With the help of AI tools, a company from the automotive industry scans online reviews, price developments and marketing activities of competitors in real time in order to strengthen its own market position.
• Product development: An electronics company uses AI tools to analyze customer reviews and support requests to improve product design.
• Stock market: AI algorithms are used by asset management companies to predict future price movements based on a variety of indicators, such as financial news and price data.
• Real estate market: Real estate agents use AI market research for location analyses in order to better assess prices and demand.