Generative AI (GenAI) represents a potentially transformational opportunity for information companies to enhance the value they create for customers and to embed more deeply in workflows then ever before.

Information companies with unique, high-quality data and an intimate understanding of their customers’ needs and use cases are best placed to take advantage. They have the curated data and understanding required to train well-tailored and reliable GenAI models, and the industry trust and credibility to promote adoption.

How are information companies innovating with Generative AI?

Two broad focus areas are emerging:

  1. Customer value proposition enhancement
  2. Productivity in data collection

1. Customer Value Proposition Enhancement

The last few months has seen a flurry of announcements from major information companies unveiling their first customer-facing GenAI innovations. Whilst the major focus has been on the development of AI assistants in this first wave of innovation, there is potential for significant enhancements to user value propositions.

 Three core functionalities of note are:

Conversational search and summarization:

Output drafting:

Integration of clients’ internal data

For examples of recent launches see Lexis+AI, AlphaSense Assistant, FactSet AI and BloombergGPT.

2. Productivity gains in data collection

Collecting, cleaning, structuring and analysing data are fundamental processes for information businesses and typically comprise a substantial proportion of their cost base. These activities involve repeatable tasks which can be replaced or augmented by GenAI, and have been an initial focus area for information service companies.

Example use cases Plural has seen deployed are:

  1. Information extraction – extracting data from multimedia formats, particularly video, audio text and images.
  2. Data cleansing – detecting outliers to identify potential errors, and in some cases, imputing missing values.
  3. Content generation – generating first drafts of articles that are later updated by researchers and analysts.

How might Generative AI transform the sector?

The early GenAI innovations suggest that information companies which harness AI effectively may be able to redefine the role they play for their customers. These companies are changing from traditional reference-based information tools to user companions, embedded more deeply than ever before into customer workflows and processes.

Harnessing generative AI enables information services companies to transform from tools to user companions

Which information companies are best placed to take advantage?

While the potential benefits of GenAI are becoming clearer, the challenge is to unpick the factors which will drive success. Providers must also be aware of the risks entailed (e.g. that GenAI will allow new entrants to harness public data sources effectively) and move quickly.

While there are many aspects to consider, the information providers best-positioned to leverage GenAI are those with:

Plural Strategy’s GenAI Framework

Our framework is specifically designed to help operators and investors evaluate the impact of generative AI in information services businesses, and has been used to assess recent deals in the sector.

Download the Framework

Access our GenAI framework