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Analytics engineering emerged alongside essentially the most vital technological revolution of the previous decade – the rise of cloud computing. In the present day, we’re experiencing even a larger transformation, one fueled by the meteoric rise of synthetic intelligence (AI), which is reshaping how analytics engineers method information challenges
AI has rapidly change into an integral a part of the each day workflows for 80% of knowledge professionals, up from 30% final yr. It’s additionally altering how information groups work, with 70% of execs now utilizing AI to help with code improvement, and 40% reporting that their information groups are rising. Whereas funding in AI instruments is main the way in which, information high quality stays a persistent problem, with over 56% of practitioners highlighting it as a key concern.
These insights come from dbt Labs’ 2025 State of Analytics Engineering Report, the third version of their annual publication, which dives into how AI is redefining information groups, the place budgets are being prioritized, and why constructing belief in information is extra important than ever.
A key discovering of the report is that AI is augmenting, not changing information groups, as many had anticipated it to. As an alternative of changing human experience, AI adoption is altering how folks work. It’s permitting professionals to spend much less time on redundant duties and focus extra on specialised work. The report highlights that greater than two-thirds (70%) of respondents use AI for analytics improvement in some type.
The rising investments in AI instruments to help information groups foster a extra constructive notion of their contributions. In consequence, 75% of respondents agree that their organizations extremely worth and belief their information groups.
“AI is disrupting the way in which that groups work with organizational information,” mentioned Mark Porter, CTO of dbt Labs. “As firms improve AI investments, leaders are prioritizing the groups liable for information high quality and governance—the important basis for AI effectiveness.”
“On the identical time, information engineers are turning to AI to automate routine duties, fully altering how information is delivered to the enterprise. Due to this, the strategic function of the information group continues to develop, with AI because the catalyst. It’s a symbiotic relationship – information professionals make AI higher, and AI makes information groups higher.”
Analytics engineering is rising past tech, with extremely regulated industries like finance (15%) and healthcare (10%) adopting it to handle complicated, compliance-heavy information. Tech stays the biggest sector at 34%, although its share has declined by 3% this yr.
In keeping with dbt Labs, organizations are investing in information once more after a cautious interval. AI instruments are the highest precedence, with 45% planning to spend extra on them within the subsequent yr. Knowledge high quality and observability come subsequent, with 38% specializing in fixing key information challenges.
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AI instruments lead funding priorities, with 45% of respondents planning to spice up spending on this space over the subsequent yr. Knowledge high quality and observability observe, with 38% aiming to extend funding to deal with pressing information high quality challenges. A number of different studies have highlighted the pressing want for organizations to deal with information high quality points, and this was a recurring theme all through this yr’s dbt Labs report.
The highest use circumstances for AI embrace code improvement (70%), adopted by documentation (50%), and answering information questions with SQL technology (22%). The report reveals that information groups are counting on general-purpose LLMs akin to OpenAI’s ChatGPT and Gemini.
Nonetheless, as a result of these instruments are usually not tailor-made for particular analytics duties, organizations are more and more adopting specialised GenAI brokers. At the moment, 25% of respondents are utilizing AI options constructed into their improvement tooling
The report’s findings additionally reveal that curiosity in semantic layers, instruments that make information clearer and extra structured, can also be rising, with 27% planning to take a position extra on this space. There may be additionally a larger give attention to empowering nontechnical customers to work with remodeled, ruled datasets, which may enhance information effectivity – a key focus for analytics engineering.
There’s a rising push to empower nontechnical customers. Almost 65% of respondents consider that enabling enterprise stakeholders to create and work with remodeled and ruled datasets would considerably enhance organizational information effectivity. Nonetheless, this highlights a core problem in analytics engineering: sustaining information integrity whereas making certain broader accessibility.
dbt Labs CEO Tristan Useful
On the dbt Cloud Launch Showcase occasion in Might 2024, dbt Labs CEO Tristan Useful, highlighted the influence of AI for information professionals. He mentioned, “And whereas this cloud transition continues to be enjoying out, AI goes to be the subsequent huge change in our lives as information professionals. The adjustments we’ll see over the approaching years might be simply as dramatic as these we’ve seen play out over the previous decade.”
dbt Labs makes a speciality of analytics engineering and is well-positioned to offer insights into the evolving subject. This yr’s report relies on a survey of 459 information professionals, together with particular person contributors (70%) and managers (30%). Among the many particular person contributors, 48% have been analytics engineers, 36% have been information engineers, and 16% have been information analysts.
Later this month, dbt Labs will host the 2025 State of Analytics Engineering Digital Occasion. The occasion’s agenda will embrace discussions on the report’s key findings, together with broader methods for constructing efficient information organizations, integrating GenAI, and addressing ongoing business challenges.