Accenture secures GenAI orders worth $2 billion in first nine months of FY24

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GenAI projects during the second and first quarters, respectively. The third quarter saw Accenture's total order bookings hit $21.1 billion, with GenAI deals accounting for 4.3% of this total, a significant increase from the 0.6% share in the year-ago period.

“With over $900 million in new GenAI bookings this quarter, we now have $2 billion in GenAI sales year to date, and we have also achieved $500 million in revenue year to date. This compares to approximately $300 million in sales and roughly $100 million in revenue from GenAI in FY23," Accenture’s chair and chief executive Julie Sweet said in a post-earnings discussion with analysts on Thursday.

“GenAI is acting as a catalyst for companies to more aggressively go after cost, build digital core and truly change the ways they work, which creates significant opportunity for us," Sweet added. GenAI, which includes technology driving innovations like ChatGPT, spans a broad array of capabilities, including creating new content forms such as text, audio, and video.

Accenture's early success in GenAI contrasts with homegrown technology services majors, such as Tata Consultancy Services Ltd, Infosys Ltd, and HCL Technologies Ltd, which are still navigating their AI strategies. Save for TCS, which claims to have bagged $900 million of AI deal wins last year, none of the technology services firms have disclosed their earnings from this technology, considered by many as the biggest risk to the outsourcing industry.

“The $2 billion in bookings YTD (year to date) in FY24 compares to about $2.2 billion in Azure AI revenues in the prior three reported quarters through March 2024. Moreover, Accenture has generated about $500 million in revenues thus far in FY24 versus about $100