AI adoption is rising, but alt-data vendor spend hasn't, Neudata report finds

Annual Neudata report estimates 2025 spend rose 17% to $2.8bn, finds firms are using AI mainly for productivity vs investment optimisation, and highlights less "crowding" on average per dataset.

LONDON, Feb. 25, 2026 /PRNewswire/ -- Neudata, the authoritative source for global data intelligence, today published its annual report, "The state of the alternative data market in 2026", estimating that investment managers spent approximately $2.8bn on alternative data in 2025, up 17% year-on-year. Using proprietary platform data from 2,805 datasets listed on Neudata's Scout platform, alongside buyer survey insights, the report analyses how alternative data spending has evolved over the past year by dataset type, geography and use case. The analysis is conducted using the 2,805 datasets listed on Neudata's Scout platform. The report provides a detailed view of how spending is shifting and the factors shaping buyer behaviour and vendor strategy. The report is available to download here.

One of the key findings of Neudata's report is that, despite the rapid rise of AI throughout 2025, vendors adding AI features or services did not drive an above–expected uplift in overall buyer spending on alternative data. Investment firms are increasingly using AI/LLMs primarily for internal productivity and workflow efficiency (66% of respondents), rather than optimising investment strategies (31%). 

"Some providers are benefiting from AI–led differentiation, and demand is growing for datasets that help investors quantify the AI boom itself – but overall, AI is changing how data is consumed, not how much buyers are spending with vendors," said Daryl Smith, head of research at Neudata.

Another finding is that, as the number of available datasets and overall market size have increased, fewer investment firms appear to be using any given dataset on average than in the prior year. Neudata estimates that the typical alternative dataset is used by around 20 investment clients on average, down from 25 in 2024 (approximately -20% year–on–year). 

"If this trend holds, it challenges the common narrative that alternative data is steadily losing its edge purely due to widespread adoption; while some individual datasets may be crowded, most are not becoming meaningfully more crowded overall," said Daryl Smith.

Additional insights explored in the report include:

• Dataset-level revenue benchmarks: How dataset revenue is distributed, and why averages can mislead.
• Dataset types and market leadership: Which categories lead spend, and how classification overlap affects interpretation.
• Geographic footprint of datasets: How coverage profiles differ across markets and buyer needs.
• Buyer demand and budget confidence: What could accelerate or slow budget growth.
• Regulation and compliance: How governance and regulatory expectations may shape adoption and onboarding.

Looking ahead, the report's scenario analysis suggests the alternative data market's long-term growth trajectory remains compelling. If current growth trends persist, Neudata estimates the alternative data market could reach approximately $23.1bn by 2030, reinforcing the sector's position as a structurally important component of the investment data ecosystem.

Download "The state of the alternative data market in 2026" here.

About Neudata

Neudata is the authoritative source for global data intelligence, providing unbiased research and advice to institutional investors seeking new market and alternative data solutions. With more than 10 years in the market, Neudata connects data buyers and data sellers through the Neudata Scout and Ranger platforms, year-round global events and its industry-acclaimed 1:1 networking programme (AltDating). Neudata also offers consulting services to help data vendors monetise existing data assets, refine strategy, understand buyer needs and position datasets effectively in the market. For more information, visit Neudata's website: www.neudata.co

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