CEO of Accenture, Julie Sweet, has revealed that most companies are not adequately prepared to implement generative AI applications at scale.
The primary hurdles include a lack of robust data infrastructure and essential controls to ensure safe and effective use of the technology she told Financial Times in a recent interview.
Despite the widespread hype surrounding generative AI in 2023, Sweet emphasized that the technology remains in the experimental phase for many companies. Macroeconomic uncertainties are also contributing to a cautious approach, hindering overall IT spending.
Analysts anticipate another significant revenue increase from generative AI projects in Accenture’s upcoming quarterly results. However, the figures, totalling $300 million over the past six months, still pale in comparison to the company’s annual group sales of $64 billion.
Corporate executives express an eagerness to leverage generative AI for enhanced data understanding and improved customer service automation. However, Sweet highlighted a critical barrier: the majority of companies lack the mature data capabilities necessary for effective AI utilization. She expressed optimism that within three to five years, generative AI would become a substantial part of Accenture’s business.
Accenture, along with other consulting firms, has invested heavily in generative AI, including substantial investments in hiring and training staff. Sweet noted that executives are adopting a prudent approach to technology rollout, addressing concerns about protecting proprietary information, customer data, and the accuracy of generative AI outputs.
While acknowledging the ongoing debate about the responsible development of AI, Sweet emphasized that corporate caution in technology deployment should alleviate fears of AI outpacing human control. Accenture offers generative AI tools based on OpenAI through a partnership with Microsoft, allowing clients to customize models with their own data.
Sweet declined to comment on OpenAI’s governance issues, stating, “It is not my responsibility to figure out whether OpenAI has got the right governance.” She emphasized that Accenture’s role is to understand and manage the risks associated with AI models while helping clients extract value.
Generative AI deployment is most advanced in areas such as corporate knowledge management, fraud detection using internal data at banks, and commodities trading in energy companies. Clients are also increasingly utilizing the technology for customer service helplines or chatbots, with human oversight.
Accenture, a global company with nearly 750,000 employees in 120 countries, has experienced a 30 per cent increase in shares this year. However, it has not reached its 2021 peak, attributed to a downturn in the tech industry. Sweet is currently overseeing a cost-cutting program that will eliminate 19,000 jobs.
Despite challenges, customers continue to sign contracts that facilitate cost reduction, particularly those involving IT improvements for long-term growth. Sweet noted that while CEOs express a willingness to spend more on technology, macroeconomic and geopolitical uncertainties continue to impede the pace of spending.
(With inputs from agencies)
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