We are seeing great interest in AI, GenAI from clients: Sandeep Dutta

Sandeep Dutta, Senior Managing Director and Lead - India Business, Accenture, talks about the challenges faced by clients and how technologies like GenAI can help them stay ahead

As the largest IT services provider, Accenture is at the forefront of helping customers navigate the challenges of cost pressures and finding new revenue streams. India is a key talent hub for Accenture comprising about 300,000 people of its total headcount of 742,318. Sandeep Dutta, Senior Managing Director and Lead – India Business, Accenture, talks about the challenges faced by clients and how technologies like generative artificial intelligence (GenAI) can help them stay ahead of the curve, in an e-mail interview with Ayushman Baruah in Bengaluru. Edited excerpts:

What are some of the challenges being faced by companies across industries in India today?
 

Companies across the world are facing unprecedented levels of change. According to an Accenture survey, the rate of change affecting businesses has risen 183 per cent over the past four years and 33 per cent last year alone. This disruption isn’t limited to issues like geopolitical unrest or widespread inflation. Technology was the number one reason for disruption on the back of advances in GenAI. Some of the key challenges faced by companies across industries in India include cost pressures, scaling the use of new technologies such as AI, GenAI, and automation, and finding new avenues of growth, and talent among others. To succeed in the next decade and weather new highs of disruption, companies need to embrace an accelerated and continuous reinvention strategy, rooted in data, AI, and new ways of working. Skilling will play a crucial role in bringing the strategy to life and fully leveraging the potential of emerging technologies like GenAI for business. While Indian businesses are optimistic about the future and spending on technology-led reinvention, they need to take a more strategic and long-term view of their technology investment strategy.

With pressures on IT budgets, are companies willing to invest in new technologies such as GenAI?
 

As businesses navigate the current macroeconomic environment, they are looking at technology to tide over their business challenges. We are seeing companies continuing to prioritise investing in large-scale transformations that may lead to revenue growth at a slower pace while limiting discretionary spending in smaller programmes. Despite all the constraints, companies across industries realise that technology is key to reinvention and growth. We are working with several companies to help them reinvent their business and gain a competitive edge using new technologies such as GenAI. Our research found that companies that had invested in new technologies, skills, and ways of working, have outpaced the rest with their average profit margin 5.6 percentage points higher between 2019 and 2022. As more companies realise the value of new technologies on profitability and growth, they are keen to use them at scale across the enterprise.

Are these investments towards proof-of-concepts (PoCs) or have they moved towards actual implementation?
 

Currently, there are two sets of companies in India when it comes to adoption of new technologies such as GenAI. The first set comprises companies that is still in the PoC stage and exploring options before going all in. The second set is those that have a robust digital core and data foundation and are working towards scaling new technologies such as generative AI to achieve a new performance frontier. We are seeing steady progress across both categories. To reinvent enterprises with GenAI, leaders need to be value-led in every business capability they choose. Too many companies have pilots and PoCs with no C-suite-approved mechanism to evaluate business value.

Which industries are showing maximum interest when it comes to GenAI adoption?
 

Today, GenAI has sparked interest from companies across industries. Consumer-facing industries such as banking, consumer goods and services, retail, telecom, media, and auto are seeing higher interest levels at the moment. Legacy industries such as energy, mining, utilities are also actively exploring the potential and value of their businesses.

In the second quarter, Accenture secured $600 million in GenAI projects. How does your deal pipeline look?
 

GenAI is rapidly evolving and is still in the early stages of maturity and adoption. We are seeing great interest in AI and GenAI across industries from our clients. Our research shows that 80 per cent leaders in India view GenAI as a top lever for driving revenue growth, reaffirming that companies will continue to make technology investments to stay relevant. We are working closely with our ecosystem partners to help our clients understand the right data and AI infrastructure required, and how to achieve tangible business value.