The Continuous MQ
Are annual reports still acceptable in the AI era?
I recently hosted a conversation about the future of the Industry Analyst with Art Schoeller and Chris Irwin-Dudek. We discussed the AI threat to Industry Analysts.
We started the conversation with a video clip outlining how Gartner (and other analysts) are doomed. It was an interesting conversation, and I was pleased to hear both of them emphasize the importance and durability of informed opinions. However, it’s clear AI will impact research to some degree.
I’m a fan of Gartner’s Magic Quadrant reports. I love them, and I also love to hate them. The first MQ was published in 1994, but precursors go back at least another decade. It’s an ingenious template that simplifies very complex tech sectors to a simple two-axis graphic. The MQ and frequent Critical Capabilities companion reports take 600-1200 hrs of analyst effort to publish. Garner publishes 100s (plural) of MQs per year.
The reports are comprehensive, and I respect the effort and the process. However, the detail and focus they require make aspects of them obsolete before they are even published.
For example, the reports have a strict cutoff for released features, often 3-5 months before publication. Keep in mind that these are intended to be annual reports, so at best, they have a shelf life of a year, but often go much longer. This raises the question of whether MQs are relics of a past era.
Twenty years ago, it was common for a PBX vendor to update its software once or twice a year. Today, we see updates daily. AI is further accelerating the pace of change (of everything). Not to mention major announcements such as partnerships, alliances, acquisitions, financial results, leadership changes, and other headlines that can impact competitiveness.
At one point in our conversation, I proposed that the MQ be issued quarterly. Chris Irwin-Dudek was quick to dismiss that idea because of the significant effort required to respond to an MQ’s RFI. I understand and agree, but maybe the MQ RFI process can be adapted.
The annual MQ process could remain unchanged, but the report could be supplemented with quarterly updates that require minimal effort from analysts and vendors. The graphic is refreshed to reflect recent developments. A quarterly RFI that’s focused on simply on changes from the past 90 days. These updates could include refreshed data from Gartner’s Peer Insights system, software releases, and other announcements. The process could be largely systematized and automated. If Gartner doesn’t do it, perhaps another firm will.
Another feature these updates could deliver is directionality. Gartner discourages its readers from comparing dot placements with prior reports for several valid reasons, but everyone does it anyway. However, comparing movements on these minor graphic updates would signal which way a vendor is headed.
If insights and opinions are what will keep industry analysts relevant, then we need to figure out how to publish them more frequently. Like every other sector, industry analysts need to leverage AI to streamline and accelerate.
Other forms of analysis are less opinionated. Financial analysts are severely limited (by regulations) in the amount of opinion they can share. Numerical-centric analysis is significantly more vulnerable to displacement by AI. Sentiment analysis has already completely changed the quarterly briefing calls.
AI and SaaS have changed the pace of software and services. Not only are systems and processes updating faster, but industry analysts can also synthesize the data more quickly. Annual reports are losing their relevance.
See the TalkingPointz analysis of the 2025 CCaaS Magic Quadrant (paid subscribers only).
Up Next
This week, Dave Michels is in Georgia for the Talkdesk Analyst event. David Danto will publish a definitive history and status of the Center of Table Cameras, then head to the Staging and Lighting conference (LDI) right after the holidays. In the meantime, be sure to catch the TalkingPointz Chatz with RingCentral’s Kristen Koenig - the Queen of RingCentral’s Pixels.
Happy Thanksgiving. There won’t be an Insider Lite for two weeks as we celebrate Thanksgiving and turn our focus to the November Insider Report, which will publish the first week of December (to paid subscribers).
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