BENGALURU: Accenture PLC has secured $100 million worth of projects in the field of generative engineering in the past four months, the company said. With this announcement, the world’s leading technology services companies pioneered sharing metrics to assess their future-readiness, providing transparency to investors as well as analysts.
BENGALURU: Accenture PLC has secured $100 million worth of projects in the field of generative engineering in the past four months, the company said. With this announcement, the world’s leading technology services companies pioneered sharing metrics to assess their future-readiness, providing transparency to investors as well as analysts.
Notably, Accenture is leveraging artificial intelligence (AI) in the same way it has tapped surging demand for cloud computing services in an effort to alleviate investor concerns. “Something like Gen AI is a big opportunity, but it’s still[a few days]early. In the last four months, we’ve done 100 projects, equating to about $100 million in revenue,” he said. Accenture chairman and chief executive Julie Sweet told analysts at a post-earnings call on Thursday.
Notably, Accenture is leveraging artificial intelligence (AI) in the same way it has tapped surging demand for cloud computing services in an effort to alleviate investor concerns. “Something like Gen AI is a big opportunity, but it’s still[a few days]early. In the last four months, we’ve done 100 projects, equating to about $100 million in revenue,” he said. Accenture chairman and chief executive Julie Sweet told analysts at a post-earnings call on Thursday.
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Gen AI encompasses a wide range of technologies, including algorithms such as ChatGPT, and can create content formats such as text, audio, and video.
“GenAI will go faster than, say, the cloud. Cloud took over a decade…We will invest $3 billion[in AI]over the next three years. Because we think it’s a new cloud-first moment when we’re embarking on “at scale.” Actually, another good analogy, perhaps even less than offshore, is similar to SaaS (software as a service), right? What was the opportunity? There were many concerns about how SaaS would impact IT services. Clearly, it was a big opportunity. So I think Gen AI is clearly a big opportunity for us to help our clients,” Sweet said.
Accenture reveals and showcases its AI prowess, spotlighting domestic tech giants such as Tata Consultancy Services, Infosys, and HCL Technologies that previously didn’t share an AI roadmap Light will hit.
Admittedly, the AI work Accenture has done is still a small part of the company’s overall business. Gen AI project orders were about 0.6% of his $17.2 billion deal won between March and May.
The rapid adoption of Gen AI among Fortune 500 companies is underscored by a deal put together by Accenture, and ChatGPT’s launch in November, just seven months ago, highlights the potential for AI to disrupt businesses. Given that it has become the most talked about catalyst, its importance is increasing. .
Accenture’s bet on AI stems from the confidence to replicate past successes in cloud initiatives. Earlier this month, the company announced it would invest $3 billion over three years in its data and AI practices. “The bigger growth will be in helping companies move their used data to the cloud, rather than in pure Gen AI,” Sweet said.
Let’s sample this: In September 2020, Accenture announced a $3 billion investment in expanding its cloud business. Revenue from cloud-related projects accounted for approximately $12 billion, representing 27% of total revenue for the year ending August 2020. Two years later, his cloud services business more than doubled to $26 billion, contributing 46% of his $61.6 billion revenue in the fiscal year ended August 2020. Year ending August 2022.
Still, some analysts aren’t sure AI can achieve the same level of success that technology services giants have achieved with cloud computing. BMO Capital Markets analyst Keith Bachman said: “We believe AI bookings will increase as the model matures and companies look for ways to better manage their data, including with the help of Accenture and others. ,” BMO Capital Markets analyst Keith Buckman wrote in GenAI’s Macro Surfaces note. “In the long term, given that AI is different from the cloud and other technological advances in terms of how it impacts society, pricing and billable time will suffer as coding and maintenance become more commoditized because of AI. It raises questions about the risks to the supply side of the model.”
To date, Accenture remains the only technology services company to share business gains from cloud, Accenture Song (formerly Interactive) and cybersecurity.
Unsurprisingly, analysts look to Accenture as a beacon of how technology services companies are embracing new technologies.
According to Mint’s review of analyst interactions, 8 out of 15 questions in Accenture’s third-quarter post-earnings interactions were about AI.
