Tech companies see gains from GenAI, but full monetization is still far away – Industry News

While most IT companies have successfully integrated GenAI and AI into their operations and customer services, leading to improved efficiency and early financial benefits, analysts say they are still far from fully realizing monetization. IT major Accenture appears to be at the forefront in directly monetizing AI to drive strong financial results, while others such as Tata Consultancy Services (TCS) and Infosys are in the process of expanding their efforts to reap broader financial benefits. Accenture has highlighted its integrated approach to AI monetization, bundling AI services into its regular transformation deals.

New AI bookings topped $900 million in the third quarter alone, bringing the total to $2 billion for the fiscal year so far, Accenture said in its September-August fiscal year. “Without enterprise-wide transformation across the three pillars of data and technology,“AI and generative AI alone will not deliver the right business outcomes unless aligned with responsible AI frameworks, processes and people,” said Sandeep Dutta, senior managing director and leader, India. Accenture Business told FE.TCSMeanwhile, the company said it sees AI as a lever to significantly improve revenue streams and enhance its business model, but that actual adoption and monetization at scale may still be a work in progress.

The company's focus on integrating AI into various areas such as customer service and manufacturing indicates its ongoing efforts to monetize these technologies. “AI is not just about reducing costs. It's about rethinking how you run your business, which then translates into significant revenue growth,” said Krishna Mohan, vice president and deputy head of the AI.Cloud unit. Meanwhile, Infosys is The company recently announced that it has developed 225 GenAI programs and is leveraging GitHub Copilot to generate millions of lines of code. The company sees great potential for GenAI to solve business challenges and improve productivity, but large-scale monetization of these efforts may still be in its early stages as customers are still developing their in-house AI strategies.

“We see huge potential in GenAI to solve business and societal challenges. At the same time, we expect productivity gains through the use of tools such as GitHub Copilot to open up huge possibilities for cost reduction and growth acceleration,” said Infosys Chairman Nandan M. Nilekani. Wipro is integrating traditional AI with GenAI to drive efficiency, increase productivity and generate new revenue streams. The company has reported encouraging early impacts, pointing to successful monetization in certain areas such as customer service and healthcare. “We are seeing an increasing number of generative AI project delivery that incorporates the right level of 'human in the moment' and 'responsible AI' principles in the solutions,” Nagendra Bandar, Managing Partner and President, Wipro Enterprise Futures, told FE. Additionally, Tech Mahindra is also looking to leverage its generative AI platform to deliver business outcomes that are aligned with the business goals of the company. We implemented GenAI to automate coding and scripting, increasing development speed and productivity.

The company has seen an increase in AI adoption among its clients, especially in operations and business processes, suggesting a successful monetization strategy through improved customer service and internal efficiencies. Kunal Purohit, Chief Digital Services Officer, said, “Using generative AI-based pair programming, a large portion of the coding has been automated, enabling faster development and improved productivity.” AI adoption varies significantly across clients, with industries such as healthcare, retail and banking leading the way. Wipro spokesperson Bandaru said, “AI adoption is gaining traction across industries. In healthcare, GenAI is being used in contact centers to assist agents and in claims processing to speed up processes.”

“Internally, companies are leveraging AI to streamline operations and increase productivity. For example, Infosys has used GitHub Copilot to generate over 3 million lines of code, reflecting the significant use of AI internally. Infosys' Nilekani said, “Enterprise AI adoption is expected to be gradual and will require significant changes internally.” Tech Mahindra has also seen productivity gains from AI integration. Purohit explained, “AI has brought about a disruptive change. Last year, customers were evaluating the benefits and risks of using AI. This year, customers are not only more conscious of how to use AI efficiently, but are also adopting it to drive outcomes.” As AI continues to evolve, there is also a focus on addressing challenges such as data privacy, integration complexities, and employee upskilling.

Accenture's Datta emphasized that “AI will not produce the right business outcomes without enterprise-wide transformation of data, technology, processes and talent.” This statement emphasizes the continued need for a comprehensive strategy to effectively harness the potential of AI. TCS's Krishna Mohan spoke about the broad impact of AI on the structure of work, saying, “Generative AI will be used to make humans smarter and more efficient… And of course, the final transformation is really rethinking the business processes, business models and value chains of industries.” And it's a value exchange.”