AI requires more than adoption for value: Accenture

Despite these challenges, there is a clear willingness among legacy companies to invest in AI technologies. Reuters

While most companies across industries are looking forward to jump on the AI and generative AI bandwagon, it is important to understand that these capabilities cannot generate value in isolation, Sandeep Dutta, senior managing director and lead – India business at Accenture told FE.

“Without enterprise-wide reinvention across three pillars – data and technology, processes, and people, along with a responsible AI framework – AI and generative AI will not be able to yield the right business outcomes,” Dutta said.

This insight is particularly relevant as Accenture moves to bundle AI services within regular transformation deals, highlighting the shift towards AI as a fundamental component of business strategy rather than an isolated upgrade. This integrated approach helps ensure that AI initiatives are more than just technological experiments but are core to driving business success, he said.

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In monetising AI, Accenture has developed a range of generative AI use cases that significantly enhance client operations and drive new growth avenues. Dutta said, “Our proven use cases allow us to scale our generative AI offerings to help clients reimagine their business processes and augment operations”.

Notably, the company’s generative AI new bookings exceeded $900 million in the third quarter, bringing the total to $2 billion for the fiscal year so far. Accenture follows a September-August financial year.

The necessity for AI in driving efficiency is also evident in how companies are responding to the technology’s potential to optimise costs, Dutta said. He added that AI and genAI have the potential to “fundamentally reinvent companies and drive growth, innovation, and can help optimise costs”.

However, the challenges of integrating AI into daily operations are non-trivial, especially amid cost pressures and the need for modernisation in legacy companies. “The biggest challenge for businesses is to stay relevant and resilient in a highly disruptive environment,” Dutta said. He added that this disruption comes not only from geopolitical and macroeconomic factors but significantly from technological advancements.

Despite these challenges, there is a clear willingness among legacy companies to invest in AI technologies. “We are working with several legacy companies to help them reinvent their business and gain a competitive edge using technologies such as generative AI,” Dutta said. This is backed by research showing a 5.6% higher average profit margin between 2019 and 2022 for companies that invested in new technologies.

As companies navigate this shift, the role of continuous learning and adaptation becomes crucial. “Only 5% of organisations are actively reskilling their workforce on generative AI,”  Dutta said. Accenture addresses this gap through initiatives like Accenture LearnVantage, which provides personalised learning experiences to prepare the workforce for upcoming changes.