Data in 2025: Key trends for unlocking value

Perspectives
January 6, 2025
AUTHOR
dakAI Advisory Team
READING TIME
4 minutes
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Navigating the evolving data landscape requires a keen understanding of emerging trends and technologies. To help organizations stay ahead of the curve, we've analyzed key insights from industry experts and identified three data trends that will be crucial in 2025.

Shifting the Semantic Layer: Empowering Data Warehouses

Traditionally, the semantic layer, which defines business metrics and data relationships, has been confined to BI tools. However, a significant shift is underway, with organizations moving this critical layer directly into the data warehouse. This strategic move offers several advantages:

  • Increased data reliability:  Centralizing metric definitions within the data warehouse ensures consistency across the organization, minimizing discrepancies and improving data accuracy.
  • A single source of truth:  By establishing a central repository for metric definitions, organizations create a single source of truth, fostering alignment and clarity across departments and teams.
  • Enhanced BI tool integration:  Decoupling the semantic layer from specific BI tools promotes flexibility and enables seamless integration with a broader range of analytics platforms.

Solutions like DBT, LookML, and Cube.js are facilitating this transition. We recommend that organizations evaluate these tools and develop a comprehensive strategy for integrating a robust semantic layer within their data warehouse.

Optimizing Data Lakes with Iceberg

As data lakes continue to grow in scale and complexity, traditional data formats like CSV and Parquet may prove limiting. Iceberg, an open-source table format, presents a compelling alternative with significant advantages:

  • Improved performance:  Iceberg's optimized data organization and advanced features like partition evolution result in faster query processing and enhanced overall performance.
  • Streamlined schema evolution:  Iceberg allows for seamless schema modifications without requiring costly data rewrites, simplifying data management and adapting to evolving business needs.
  • Cost reduction:  By enabling efficient data pruning and reducing unnecessary data scans, Iceberg can significantly optimize storage and processing costs.

Organizations should consider a phased approach to Iceberg adoption, starting with a migration from CSV to Parquet, followed by a transition to Iceberg. This gradual approach ensures a smooth transition and minimizes disruptions to existing data pipelines.

Leveraging Generative AI for Text-to-Insight

Generative AI is transforming the way we interact with data. The ability to extract insights from textual data using natural language queries is a game-changer, but it also presents challenges:

  • Accurate SQL generation:  Translating natural language prompts into precise SQL queries requires sophisticated AI models and a deep understanding of the underlying data structure.
  • Domain specialization:  The complexities of different business models and data structures necessitate specialized "chat with data" tools tailored to specific industries.
  • Semantic layer integration:  A well-defined semantic layer is essential for generative AI to accurately interpret user requests and provide meaningful insights.

Solutions like Omniscient are addressing these challenges by leveraging semantic layers and templates to facilitate text-to-insight capabilities. We encourage organizations to explore these solutions and experiment with generative AI to unlock the hidden value within their textual data.

Useful Definitions

  • Semantic Layer: A business representation of data that defines metrics and relationships between data elements, enabling users to understand and analyze data in a business context.
  • Data Warehouse: A central repository of integrated data from one or more disparate sources used for reporting and data analysis.1
  • Data Lake: A centralized repository that allows you to store all your structured and unstructured data at any scale.
  • Iceberg: An open table format for large analytic datasets.
  • Generative AI:  A type of artificial intelligence that can create new content, including text, images, and code.
  • Text-to-Insight:  The ability to extract insights from textual data using natural language queries.

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