GenAI: What Accenture got right, but Indian IT didn't
ChatGPT that made AI the biggest talking point in the technology world as a potential catalyst for disruptions in businesses. “We continue to take an early leadership position in GenAI, which will be an important part of the reinvention of our clients in the next decade," Accenture chair and chief executive officer Julie Sweet said in a post-earnings interaction with analysts on Tuesday. If Accenture’s GenAI business continues to grow at the same rate, it could become a $4 billion business in the current financial year, an analyst said.
“The one bright spot is GenAI, with bookings of $450M in 1Q ($200M in 4Q23; $100M in 3Q). In our view, GenAI bookings could grow to over $4B in FY24, as projects scale," Arvind Ramnani and John Nutt, analysts at investment firm Piper Sandler & Co. wrote in a note dated 19 December.
GenAI encompasses a wide range of technologies driving chatbots such as ChatGPT, and is capable of creating new forms of content including text, audio and video. Accenture’s early gains in GenAI is in contrast to homegrown technology services giants such as Tata Consultancy Services Ltd, Infosys Ltd, and HCL Technologies Ltd which still struggle to define an AI roadmap, and do not share their earnings from the technology that many believe poses the biggest risk to the outsourcing industry. Accenture, which follows a September-August financial year, reported $18.4 billion in order bookings in the first quarter, while revenue totalled $16.2 billion.
This implies GenAI work is about 2.4% of total work at Accenture. Order bookings for GenAI projects were about 0.6% of its $17.2 billion deal wins in March-May, and have picked up pace. Understandably, many analysts are enthused with Accenture’s progress in GenAI, and
. Read more on livemint.com
