IT Firms Face 'Long Curve' Before Revenue Visibility From GenAI
Business Standard|August 09, 2024
Revenue from generative artificial intelligence (GenAI) or the deal pipeline in this segment in April-June of FY25 was missing in the quarterly statements of large information-technology services firms other than Accenture and Tata Consultancy Services (TCS).
SHIVANI SHINDE
IT Firms Face 'Long Curve' Before Revenue Visibility From GenAI

Rather, this quarter many avoided even giving the number of proof-of-concepts (POCS) they are working on.

Salil Parekh, chief executive officer (CEO) and managing director (MD), Infosys, in the media briefing, said: "We are not sharing externally the value in terms of revenue or of the deals ... our Generative AI approach is leading in the market." Peter Bendor-Samuel, CEO, Everest, a research firm, said there was a long curve before GenAI started generating money.

"With 85-90 percent of all pilots not making it to production and large enterprises failing to see significant productivity gains in most of the use cases where they have adopted co-pilot and similar GenAI, we believe that the long-forecasted boom from GenAI is not imminent and probably will not materialize in the foreseeable future," he told Business Standard on email.

Accenture said its GenAI-led deal pipeline had touched $2 billion, from which it had earned $500 million. This is 1 percent of the company's revenue.

This story is from the August 09, 2024 edition of Business Standard.

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This story is from the August 09, 2024 edition of Business Standard.

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