The Rise and Risks of Synthetic Data

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Artificial intelligence is transforming every industry at an unprecedented rate and market research is no exception.

From predictive analytics to synthetic data modeling, AI promises increased efficiency, reduced costs and deeper insights.

However, as the adoption of AI-driven research accelerates, a critical question arises – are we sacrificing human intuition and strategic expertise in the process?

For Duncan Nealon, CEO of Sparkminds (formerly Two Ears One Mouth), AI is certainly a valuable tool, but it should never replace human intelligence when it comes to market research.

His agency’s evolution from a qualitative-heavy research firm to a consultancy-driven insights provider mirrors a broader industry shift – a growing demand for high-end strategic guidance rather than automated, one-size-fits-all insights.

“Mentioning no names, the big research agencies are positioning themselves as tech firms,” Nealon says. “That approach makes sense – tech companies usually achieve higher valuations than traditional consultancies – but the result is a model focused on ‘cranking the handle’ and automating research processes rather than delivering genuine consultancy.”

This shift benefits certain brands, particularly multinational corporations seeking consistency across markets, but Nealon suggests that for companies requiring agility, customization and deep strategic engagement, the tech-first approach is proving inadequate.

“We keep receiving briefs from businesses saying, ‘We just want high-level consultancy. We want experienced directors working on our business, not just an AI tool generating generic reports,’” he says. Sparkminds has responded by positioning itself as a consultancy-first agency, using AI to enhance human expertise rather than replace it.

Read more at TheDrum.com