Indian IT Giants Harnessing GenAI for Growth, Full Monetization Still Unfolding

IT Companies Harness GenAI's Potential, Full Monetization Yet to Be Realized
IT companies are making initial gains by integrating GenAI into operations and services, but widespread monetization remains elusive. This article explores how companies like Accenture, TCS, Infosys, Wipro, and Tech Mahindra are leveraging AI for efficiency, revenue growth, and innovation, while highlighting the challenges and future outlook.

Leading Indian IT companies, including Accenture, TCS, Infosys, Wipro, and Tech Mahindra, are integrating generative AI (GenAI) and AI into their operations and client services. This integration has resulted in enhanced efficiency and initial financial gains. However, industry analysts suggest that the full potential of monetization is yet to be realized.

Accenture Leads in Direct AI Monetization

Among the IT giants, Accenture stands out as the frontrunner in directly monetizing AI, demonstrating significant financial outcomes. The company has incorporated AI services into its regular transformation deals, emphasizing a holistic approach to AI monetization. In the third quarter alone, Accenture’s AI new bookings surpassed ₹7,400 crores, contributing to a total of ₹16,500 crores for the fiscal year thus far.

“Without enterprise-wide reinvention across 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,” said Sandeep Dutta, senior managing director and lead – India Business at Accenture.

TCS and Infosys Scaling AI Efforts

While TCS acknowledges AI’s potential to transform revenue streams and business models, large-scale adoption and monetization are still evolving. The company’s focus on incorporating AI into diverse sectors like customer service and manufacturing indicates ongoing efforts to monetize these technologies.

“AI is not just about cost savings; it’s about reimagining how businesses operate, which in turn drives substantial revenue growth,” said Krishna Mohan, vice president & deputy head of AI.Cloud unit at TCS.

Infosys, meanwhile, is developing 225 GenAI programs and utilizing GitHub Copilot to generate millions of lines of code. While the company sees immense potential in GenAI to address business challenges and boost productivity, widespread monetization of these initiatives is still in its nascent stage as clients refine their internal AI strategies.

“We believe that GenAI has enormous potential to solve business and societal challenges. At the same time, we expect productivity to go up with the use of tools like GitHub Copilot, creating lots of potential to reduce cost and help in growth,” said Nandan M Nilekani, chairman of Infosys.

Wipro and Tech Mahindra Integrating GenAI for Efficiency and Revenue

Wipro is combining GenAI with traditional AI to achieve efficiencies, elevate productivity, and generate fresh revenue streams. The company has reported encouraging initial results, indicating successful monetization in specific areas such as customer service and healthcare.

Tech Mahindra has implemented GenAI to automate coding and scripting, accelerating development speed and productivity. The company has observed increased AI adoption among clients, especially in operations and business processes, suggesting a successful monetization strategy through enhanced client services and internal efficiencies.

Diverse AI Adoption Across Industries

The adoption of AI varies significantly among clients, with sectors like healthcare, retail, and banking leading the way. In healthcare, GenAI is being employed in contact centers to support agents and in claim operations to expedite processes.

Challenges and Future Outlook

As AI continues to evolve, challenges such as data privacy, integration complexities, and employee upskilling need to be addressed. Industry leaders emphasize the importance of comprehensive strategies to effectively leverage AI’s potential. The adoption of enterprise AI is expected to be gradual, requiring major internal changes.

Overall, the Indian IT industry is actively embracing AI and GenAI, recognizing their transformative power. While full-scale monetization is still a work in progress, the initial gains and ongoing efforts demonstrate a promising future for AI-driven growth in the sector.

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About the author

Aditi Sharma

Aditi Sharma

Aditi holds a Masters in Science degree from Rajasthan University and has 7 years under her belt. Her forward-thinking articles on future tech trends are a staple at annual tech innovation summits. Her passion for new tech trends ensures that our readers are always informed about the next big thing.

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