In the early days of the PC, VisiCalc was hailed as the “killer app” that drove the personal computer market. Now, a new spreadsheet, Sourcetable, could have a similar impact on the AI market.

Announced recently, along with $4.3 million in venture funding, the cloud-based Sourcetable promises to use AI to democratize data analysis for everyone. While 750 million people use spreadsheets daily, only 20% know how to use basic analytical functions, according to Sourcetable.

The AI spreadsheet eliminates the technical barrier that has plagued spreadsheets since their inception. Users simply tell the spreadsheet what they want done through natural language commands, and Sourcetable’s AI does the work for them. Instructions can be made via keyboard or through a hands-free voice control mode.

Sourcetable’s autopilot mode completes complex tasks that typically require advanced spreadsheet knowledge, including creating and editing financial models, generating spreadsheet templates, building pivot tables, cleaning data, creating charts and graphs, editing formatting, enriching data, and analyzing entire workbooks. The AI understands data context without requiring users to pre-select ranges, interprets multiple ranges across different tabs, works with messy data, and seeks human clarification when instructions are unclear.

Smart AI Analyst on Demand

According to Sourcetable CEO Eoin McMillan, the tool makes it easier for executives and managers to have more digital intelligence at their disposal to perform tasks. It also helps junior employees or recent graduates upskill quickly. Whether someone is in marketing, sales, accounting, or finance, the AI spreadsheet can streamline complex workflows and save time on manual tasks.

McMillan explains that partnering with AI is like having a brilliant digital analyst on demand, enabling users to tackle harder tasks more easily and complete time-consuming workflows faster. Workflows that once took hours can now be completed in minutes.

Chris Sorenson, CEO of PhoneBurner, believes that bringing AI into spreadsheets is a logical evolution. Traditional spreadsheets require a high level of expertise to manipulate large datasets, build formulas, and extract insights. With AI, people can ask natural-language questions and get real answers without needing to be a data analyst, which significantly boosts productivity, especially for teams without dedicated data professionals.

Sorenson also believes that Sourcetable’s idea that “everyone can become an analyst” has merit because it lowers the barrier to entry for data-driven decision-making. However, there is still a learning curve in understanding what the AI is doing behind the scenes, and there is always a risk of misinterpreting data if results are taken at face value without understanding the context.

Sorenson asserted that this innovation could mirror VisiCalc’s impact on PCs. If AI can transform spreadsheets into smarter and more accessible tools, it could become a gateway to broader AI adoption across departments.

Mark N. Vena, president and principal analyst with SmartTech Research, agreed, noting that AI spreadsheets could do for AI what VisiCalc and Lotus 1-2-3 did for computing by solving a practical need for accounting and planning. They package powerful capabilities into a familiar interface, making AI accessible to a much wider group of users.

Killer App or Spreadsheet Killer?

Robin Patra, head of data, analytics, and AI at a large U.S. contractor, believes that AI spreadsheets could catalyze mainstream AI adoption, much like VisiCalc and Lotus 1-2-3 popularized PCs. VisiCalc transformed spreadsheets from paper-based ledgers to digital tools, driving Apple II sales. Similarly, Sourcetable’s “self-driving” interface represents a paradigm shift, empowering non-technical users to execute advanced analytics.

While Sourcetable could be a killer AI app, it could also render traditional spreadsheets obsolete. Rob Enderle, president and principal analyst at the Enderle Group, suggests that AI can take direction and potentially create better outcomes without needing the spreadsheet technology, allowing users to simply tell the AI what they need, input the data, and then get improved results.

However, Enderle cautions that AI can have accuracy problems, even with math, and can introduce hard-to-identify errors, making the results unreliable.

How AI Spreadsheets May Shape the Future

Vena notes that one non-trivial downside is over-reliance on AI-generated output, which may not always be accurate or explainable. There is also the risk of reduced skill development in traditional analysis methods and potential privacy concerns when data is processed through AI systems.

Sourcetable’s claim that AI can make everyone an analyst needs to be examined critically. While AI can level the playing field by enabling non-experts to run analyses and extract insights, it assumes that AI always delivers useful or correct answers, which is not guaranteed. Users still need judgment to interpret results, so like any AI technology, it’s not fail-safe.

Looking forward, Sourcetable could influence not only spreadsheet applications but also consumer applications in general. AI spreadsheets could phase out roles centered on manual data entry, shifting demand toward AI management skills. Natural language interfaces could also start to replace traditional GUI-based tools.

Vena believes that AI-powered consumer tools like Sourcetable could reshape productivity software, potentially leading to faster decision-making, more empowered individuals, and broader adoption of data-driven thinking. However, they also raise issues around data security, job displacement, and trust in automated systems.

Conclusion

Sourcetable presents a compelling vision for the future of data analysis, one where AI empowers users of all skill levels to extract insights and make data-driven decisions. By simplifying complex tasks and providing an intuitive, natural language interface, Sourcetable has the potential to democratize data analytics and transform the way businesses and individuals work with data.

However, as with any emerging technology, there are challenges and potential pitfalls to consider. Over-reliance on AI-generated output, the risk of inaccurate results, and concerns about data security and job displacement all need to be carefully addressed. Despite these challenges, the potential benefits of AI-powered spreadsheets are significant, and Sourcetable is poised to be a key player in shaping the future of data analysis. Its success will depend on its ability to balance innovation with accuracy and to build trust with users who are increasingly relying on AI to make critical decisions.