What is a Data API?

What is a data API?

A Data API (Application Programming Interface) is a structured interface that allows applications to access, exchange, and manipulate data across various systems or platforms. Instead of manually downloading or importing files, developers and organisations can use Data APIs to connect directly to databases, data lakes, or external data providers in real time. This allows seamless integration, automation, and scaling of data-driven operations.

Data APIs form the foundation of modern analytics, machine learning, and enterprise intelligence systems. By standardising how information flows between applications, they ensure that users always have up-to-date, credible data for decision-making.

Why are data APIs important?

Data APIs are critical to today’s interconnected digital ecosystem. In addition to streamlining workflows, they:

• Facilitate interoperability by bridging data silos and enabling systems to communicate using API-first standardised formats.
• Enable automation and reduce manual tasks in reporting, analytics, and compliance.
• Support real-time operations by delivering live data streams for dashboards and alerts.
• Enhance scalability, allowing organisations to integrate large data volumes efficiently for batch processing.
• Fuel AI and analytics: Provide structured, reliable data pipelines to power machine learning algorithms and decision-support tools.

Before the expansion of this technology, data exchange relied on manual uploads or batch file transfers. The rise of RESTful APIs, JSON formats, and other cloud-based microservices has transformed this process, allowing instant, secure, and scalable access to credible data sources.

How do data APIs work?

Data APIs function as intermediaries between data providers and data consumers. A typical interaction involves four steps:

1. Request: A client sends a request (e.g., GET or POST) to a specific API endpoint.
2. Processing: The API authenticates the user, validates permissions, and retrieves the requested data.
3. Response: The API returns the normalised data in a structured format—commonly JSON or XML.
4. Integration: Applications use the data to populate dashboards, train models, or automate workflows.

For example, a financial analytics platform may call a Data API to retrieve live stock prices, ESG ratings, and market news for automated portfolio risk assessments.

Types of data APIs

There are several main types of Data APIs commonly used by organisations.

• Open APIs (Public): Freely accessible interfaces offering non-sensitive or public data sets, often used in research or open data initiatives.
• Partner APIs: Restricted APIs shared between organisations with formal agreements, enabling collaborative projects.
• Internal APIs: Used within a company to streamline data exchange between internal systems.
• Composite APIs: Combine multiple sources or endpoints into a single request, simplifying data aggregation.
  
  

Examples of data APIs in action

News APIs can be instrumental in a variety of different use cases. 

Finance

Banks and asset managers use Data APIs to stream market data and monitor regulatory updates in real time.

Legal and regulatory

Law firms and compliance teams integrate court data, sanctions lists, and company filings directly into research workflows.

Media monitoring

Public relations teams use APIs to aggregate licensed news, sentiment, and social media mentions for brand analysis.

AI and analytics

Data scientists connect APIs to structured datasets for training AI models and enriching predictive analytics.

Data API summary

How LexisNexis can help with Data APIs

Nexis Data+ provides structured, enriched, and credible data sets accessible through secure APIs, ideal for organisations that require trusted data for analytics, AI, and compliance.

With Nexis Data+, users can:

• Access curated, normalised data across industries and jurisdictions.
• Integrate licensed, compliance-ready information into applications and workflows through flexible delivery.

Rely on accurate, legally sourced data backed by LexisNexis’s editorial standards.

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