According to a recent report by EY, a majority of senior executives in Indian tech-services are anticipating a high impact from Gen AI on their businesses. The report comes at a time when the technology sector is facing challenges due to global economic conditions and a weak demand environment. The survey of 50 companies and 10 interviews with CXOs revealed that Gen AI’s impact is expected to be highest in the area of customer experience, followed by innovation, cost reduction, and revenue growth.
Nitin Bhatt, Technology Sector Leader at EY India, highlighted that Gen AI is a top investment priority for CEOs and boards of Indian tech-services companies. However, there have been concerns about lower customer spends on Gen AI in the last year, leading some experts to question whether the technology has been over-hyped.
The report also outlined the factors hindering Gen AI adoption, including a skills gap, unclear use cases, and inadequate focus on Gen AI initiatives. Despite the potential of Gen AI to transform business models, enhance productivity, and reduce costs, the percolation of this technology has been slower than anticipated. Nearly two-thirds of tech-services CXOs stated that their organization’s readiness to leverage Gen AI is low to moderate.
Looking ahead, Bhatt expects a significant surge in Gen AI-related spending over the next three years. However, concerns about data privacy, hallucination or fabricated answers, and biased responses have been raised, which could hold businesses back from implementing Gen AI into operational processes.
With regards to regulation, there is a difference in opinion among tech services companies. While some believe that the government should be responsible for regulating Gen AI, others prefer industry associations or self-regulation.
In conclusion, the report sheds light on the potential impact of Gen AI on Indian tech-services companies. While there is anticipation of a high impact, there are also challenges and concerns that need to be addressed for the successful adoption of this technology.
Opinion:
The potential impact of Gen AI on Indian tech-services companies is evident from the report, and it’s clear that there is a high level of anticipation among senior executives. However, the concerns about lower customer spends and challenges in adoption indicate that there are still hurdles to overcome. It is essential for businesses to address these concerns and invest in the necessary resources to leverage the full potential of Gen AI. Additionally, collaboration between the government, industry associations, and businesses will be crucial in designing regulatory frameworks that ensure the responsible and ethical use of Gen AI. Overall, while there are challenges, the potential benefits of Gen AI make it a technology worth investing in for Indian tech-services companies.