AI Is a Tool, Not the Answer: Why Human Expertise Matters in Market Research

At The Freedonia Group, we’ve recently heard a growing concern from clients about AI use in market research.

Some have come to us after disappointing experiences with other research providers. They either suspected or were explicitly told that the reports they received were generated largely or entirely by AI. And unfortunately, the results showed it.

Clients told us the data didn’t add up; that the analysis was shallow or nonexistent; that the forecasts lacked credibility. They noted that these reports failed to reflect the industry as they saw it in their day-to-day operations, with no real understanding or nuance about the players, the challenges they face, or the market positioning within the larger economy. It was a patchwork of generic statements and misaligned numbers — leaving clients with no confidence that they could use this information to make mission-critical decisions.

Other clients have seen product launches from market research firms that advertised AI use as a means to provide customized information faster and cheaper. However, they were concerned that the process, as described, cut corners so much that they doubted that the results would be valuable.

This has prompted some clients to ask us: How does Freedonia use AI?

The short answer is this: we use AI as a tool, not the process.

What AI Can Do Well in Market Research

Artificial intelligence has tremendous potential to enhance the market research process. We use it for things like:

• Collecting and organizing large amounts of information more efficiently.
• Outlining text sections of reports to put our thoughts in order.
• Writing drafts for background text such as product definitions or basic technology discussions.
• Exploring alternate scenarios that can supplement brainstorming and hypothesis generation.

These are areas where AI adds value — boosting speed and productivity, particularly with the more mundane data entry tasks — so our experts can focus on what matters most.

Where AI Falls Short… and Humans Excel

But high-quality market research isn’t about producing large volumes of text or rapidly summarizing public data. It’s about developing data series that don’t already exist anywhere else and connecting the dots. It’s about asking the right questions, following the leads that matter, spotting trends before they happen, and discerning signal from noise.

This is where experienced human analysis takes over. We know when something looks off, when a number is implausible, or when a trend has deeper meaning than what the raw data shows. We can recognize the subtle forces shaping an industry, and place trends and innovations within the context of real competitive and regulatory landscapes. We can talk to end users, sales staff, and product development leaders to feel out what will hit and what is overstated. We know how to ask the right questions, whether of an AI chatbot or an internet search or human contacts.

Our experienced analysts and interdisciplinary research teams know the industries, understand market drivers, test and refine assumptions, and place it within the larger context so outlooks are logical and reasonable rather than overstated. We can deliver the kind of insightful, forward-looking analysis that decision-makers rely on.

Human Accountability Matters

Another thing AI can’t do: answer your questions.

Even AI developers know that these systems’ “thinking” is veiled and not really understood. Why did it offer that data point or trend suggestion? Unless it can point you to a public source (in which case, it’s nor providing anything original), you can’t really know why. I’ve personally seen these AI chat conversations totally devolve when I ask it “why?” too many times!

When you’re making mission-critical decisions, you need to know:

• What assumptions went into this forecast?
• What factors were weighted most heavily?
• Why did we discount one source or factor and lean more heavily on another?
• How did we determine risk vs. opportunity in this innovation?
• If your product is not specifically mentioned, is it within the scope?
• What was the time stamp for the analysis? Did it consider tariffs that are now in effect?

We can answer those questions about our reports and support our analysis.

You will never get that from an AI-generated report.

Because we're not just selling reports — we're building relationships, providing expertise with accountability.

Know Your Analyst

AI will undoubtedly continue to play a growing role in the research process. And we welcome that — so long as it’s in the service of deeper understanding, better decision-making, and higher standards.

But when it comes to the insights that guide product strategy, investment planning, or go-to-market execution, clients deserve more than just any number. They deserve accuracy, relevance, and real strategic insight. They deserve research that’s driven by experience, powered by tools, and rooted in human judgment.

At Freedonia, that’s exactly what we deliver.

Access the Expertise You Need to Stay Ahead

The Freedonia Group can help you obtain accurate, reliable data and forecasts that align with your business goals. Search our website to explore our reports and analysis. 

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About the blogger: Jennifer Mapes Christ is a long-time analyst and research manager at The Freedonia Group and Packaged Facts. With more than 25 years of experience sizing markets, forecasting demand, and tracking trends, she has authored more than 90 studies, and her analysis has appeared in The Wall Street Journal, The Washington Post, The New York Times, and many other industry publications and media outlets.