With Gen AI gaining significant enterprise attention, companies across industries seek to deploy the technology to boost customer service, employee engagement, and time-to-market. The tidal wave of adoption offers attractive avenues for providers to take their service offerings to the next level. The response to the lucrative market opportunities has been overwhelming, with many companies deploying novel solutions and strategically aligning themselves to capture new revenue streams from the current trend toward mass adoption of Gen AI.
Pioneering technologies such as deep learning, computer vision, quantum AI, and neuroscience-inspired AI take the spotlight regarding strategic investments.
– Avasant Research
Not surprisingly, the mushrooming interest in Gen AI developments has seen the technology take to other areas. These include areas like drug discovery, fraud identification, and personalized therapy bots thanks to the solid foundation for complex problem-solving capabilities according to the report titled “Capitalizing on Generative AI: The Next Big Leap for Service Providers.” The report by Avasant Research cited Movate, besides other industry bigwigs for establishing a Gen AI Center of Excellence (for innovation) to build applications around application maintenance and observability, knowledge management (KM), and AI-powered chatbots.
Bold new ventures
Avasant Research showcased how the industry bellwethers are taking to this space by doubling down on their AI teams, inking partnerships, deploying Gen AI for clients, dedicated excellence centers, and new projects on the anvil. Amidst the great Gen AI rush, Movate’s suite of services accelerates business value with enterprise-grade Gen AI. Movate Athena, a modular Gen AI platform for biz transformation, leverages cutting-edge AI technologies to transform client businesses and propel ROI.
What distinguishes Movate from the rest is the co-innovation and co-creation-based approach, which doesn’t force-fit any technology into the customers’ environment but instead works on a collaborative partnership model that is also outcome-focused.
Interestingly, the “early movers” who have made a timely foray into Gen AI and investment foresight are well positioned to capture the immense enterprise demand for Gen AI solutions. Some of the companies mentioned in the report trace their journey back to 2015 when they invested in OpenAI and Generative AI, which led to solution accelerators for transforming legacy code. Some have partnered with elite universities on sector-specific research programs for building Large Language Models (LLMs).
Immense enterprise demand
Unsurprisingly, the past 6 months have witnessed a substantial upswing in budget allocations and client dialogues regarding Gen AI. Avasant Research graphed various Gen AI use cases that are garnering service providers’ attention across the scale (high to low) of “innovation” and “availability” levels. The chart mentions content and code generation, document summarization, predictive maintenance, digital twin simulation, KM, personalized AI assistants, marketing campaigns, customer relationships management, and others.
LLMs could hasten approximately 15% of all worker tasks in the US while maintaining the same level of quality, according to a study by Cornell University.
AI’s inflection point is maturing, and service providers are distinguishing themselves; the impact on boosting productivity and cost efficiency also means an anticipated influence on outsourcing contracts. Service providers need to evolve their delivery models by revising their pricing models to focus on “outcomes and business value,” as traditional fixed and rate card models will likely need an overhaul. Gen AI advancements are transforming IT/BPO contracts by necessitating adaptable and flexible project contracts.
Laying down enterprise guardrails
The report mentioned how clients are increasingly wary about the risks and blind spots and want to know the necessary steps to thwart the potential negative impacts of adoption. They want to know the roadmap for effective organizational change management. The pressing need of the hour is to establish guidelines and best practices concerning security, data privacy, bias, and ethics. One of the focus areas is measuring ethics and data privacy, as these are integral to the contracts. Avasant research analysts state non-compliance will be measured and enforced through a penalty clause.
Establishing standards for quality assurance of output from Gen AI and ensuring it aligns with human-generated output is another core aspect that service providers need to consider.
Gen AI talent strategy
Nurturing the right talent mix has never been more critical than now as service providers expect significant productivity enhancements over the next 12 months. The report estimates up to 40% productivity improvements in BPO, infrastructure management, app maintenance, and development. This scale of advancement is likely to tumble service costs, and leaders are keen to offset this with an influx in project volumes.
Gen AI skills and roles such as digital trust specialists and prompt engineers are imperative to deliver on projects successfully.
The authors mention that service providers are proactively building a Gen AI workforce pipeline to cater to the anticipated surge in demand in the months ahead.
Call it the new realm or wonderland of generative AI. In ways previously unseen and unheard of with other technological developments such as blockchain and IoT, Gen AI has ushered in a tidal wave of mass adoption in the market today. Technology is evolving, and the safest bet before witnessing any full-scale deployment and integration is to firmly ground the technology in best practices and guidelines in security, data privacy, bias, and ethics.
Clear out the fog surrounding potential risks and chart strategic roadmaps with a trusted value partner who can deploy enterprise-grade Gen AI.
Contact us to unlock new revenue streams via Movate’s Gen AI CoE.