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Harnessing the Power of Generative AI – Opportunities for Technology Services

September 21, 2023 2479 1 nasscom insights AI

Harnessing the Power of Generative AI – Opportunities for Technology Services

Generative AI is estimated to yield an annual economic value of USD2.6 to USD4.4 trillion globally, with the highest impact expected across high tech, banking, and retail industry.Across the four application themes - Concision/Virtual Experts, Coding, Customer engagement, and Content generation - approximately 75 percent of the value is expected to be concentrated in four functions – sales and marketing, software engineering, customer operations, and product and R&D. This study, Harnessing the Power of Generative AI – Opportunities for Technology Services, sheds light on the potential impact of Generative AI on the technology services sector, opportunities this technologyrevolution holds for the industry players, and what these players can do to seize the opportunities.

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Key Findings:

  • Since 2020, VC investments in generative AI have grown by 425%, while Googlesearches for ‘generative AI’ experienced an 8x growth between December 2022 and January 2023
    • Discussion on how the Generative AI ecosystem is evolving with accelerating launches of Gen AI models, applications and datasets
    • Understanding how four application themes have already started to prove significant value for enterprises
    • Overview of the generative AI productivity impact across industry verticals

 

  • Expansion in addressable market, delivery excellence, sales excellence, and productivity gains in SG&A, will be the four potential areas of opportunity that Gen AI will present for the technology services industry
    • Capturing the new and reimagined services that are expected to emerge across both technology services and business services value chain, along with other opportunities that would expand the addressable market for technology services providers
    • Quantifying the expected productivity boost from Generative AI in service delivery
    • Overview of the 15 Gen AI use cases that are likely to disrupt the technology services sales and marketing
    • Understanding how some Gen AI use cases can bring about productivity improvement in the general and administrative functions across the technology services sector

 

  • The expected revenue and margin impact, attributed to Generative AI, will be driven by shifts in the existing business economics, scope compression, expanding of services and offerings, and productivity gains in SG&A functions
    • Understanding how generative AI will bring about change in economics of existing business, scope compression, growth in services/offerings, and gains in SG&A for technology services providers
    • Understanding how generative AI will affect the timelines for achieving 50% automation levels across current work activities

 

  • Multi-dimensional uncertainties pertaining to Generative AImake it challenging for technology service providers to determine the most appropriate stance
    • Breaking down the seven fundamental building blocks that technology service providers need to invest in quickly in order to seize opportunities offered by Generative AI
    • Understanding how generative AI will change the talent structure/pyramid of teams through the evolution in the nature of existing roles and emergence of new roles
    • Understanding how Gen AI will change the nature of work across the existing roles, and what should an organization-wide skilling roadmap, for at-scale adoption and upskilling of the current workforce, look like

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