Generative AI to open up revenue streams for IT firms, say analysts

During the March quarter earnings, TCS COO N Ganapathy Subramaniam and Infosys CEO Salil Parekh spoke at length about how they are adopting such tools to scale up productivity and capability of their employees as well as clients.

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Firms like L&T Technology Services (LTTS) are also looking to leverage the latest R&D in generative AI and deploy it first as a pilot in the marketing team and then to other areas within the organisation.

Information technology firms are increasingly fast-tracking enterprise usage of generative AI tools like ChatGPT, DALL-E2, Bing AI, etc, to improve their margins and revenue per employee.

During the March quarter earnings, TCS COO N Ganapathy Subramaniam and Infosys CEO Salil Parekh spoke at length about how they are adopting such tools to scale up productivity and capability of their employees as well as clients.

“My interaction with clients during the last quarter started with and stopped with ChatGPT. TCS has started integrating generative AI in its offerings. Over the last three-four decades, we have collected enormous amount of data on delivery performance and delivery metrics. We are now focusing on how to apply machine learning and deep learning into data so that we are able to raise our own capability and delivery performance,” Subramaniam said.

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Parekh on his part said, “We are leveraging generative AI capabilities both for our clients and within the company. We have active programmes and projects with clients, working with generative AI platforms to address specific areas, processes, and libraries within their business. We have trained open-source generative AI platforms on our own internal software development libraries.”

Firms like L&T Technology Services (LTTS) are also looking to leverage the latest R&D in generative AI and deploy it first as a pilot in the marketing team and then to other areas within the organisation.

Speaking about the vast resources and libraries of codes developed by IT companies, Gaurav Vasu, founder, UnearthInsight, said, “This is a big advantage for tech companies because a lot of repeat codes will be automated and in future engineers will play roles of enhancing codes, prompt engineers and test engineers to reuse existing libraries.”

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On the impact of generative AI on outsourcing business, Vasu, said, “Over the next 12 months freshers will start getting trained for prompt engineer roles to make best use of vast database and front-end generative AI tools and this will help Indian IT industry operate efficiently.”

According to him, ChatGPT-like products will act as trainers or knowledge providers to freshers, thus reducing the training time from the current six to eight weeks to around three-four weeks.

“IT companies will form the core of the generative AI business ecosystem that is already underway, said,” Pareekh Jain, founder of Pareekh Consulting, said. “As clients are also thinking on how to integrate generative AI in different areas like marketing, customer relationship, etc, IT firms would play the role of integrator. There are also many start-ups providing use cases of ChatGPT (generative AI) for enterprises,” he said.

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This article was first uploaded on April twenty-six, twenty twenty-three, at forty-five minutes past five in the morning.
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