The API gives developers, webmasters, and SEMs the ability to pull data from Google Analytics to use as they wish. Clearly this can be useful for SEMs who want to integrate analytics data with their SEM systems, plus developers or webmasters who have ways to use this data to improve their business and websites.
The Google Data API Blog shares more technical data on how to get started with the API. There is currently a Java and JavaScript library out there to help developers work with the API.
For more information on the API, see the Google Code site or visit the Google Group for questions and support.
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