Accenture’s $3Bn AI gamble pays off: CEO Announces Soaring AI Earnings and New GenAI Deals worth $900 Mn

• Accenture’s generative AI business, which helps companies automate operations to cut costs and increase productivity, saw a 50% increase in new bookings quarter-over-quarter.
• In 2023, Accenture revealed a plan to invest $3 billion in artificial intelligence over the next three years.
• Looks like the return is paying off as Accenture GEN AI deals have almost doubled.
• Here is an update.

AI Earnings Skyrocket

Accenture is raking in the cash with AI!

CEO Julie Sweet announced they have snagged $900 million in new generative AI deals this quarter alone.

That brings their total to a whopping $2 billion in sales and $500 million in revenue for the year.

Last year? Just $300 million in sales and $100 million in revenue. Talk about a glow-up!

Small Projects, Big Hopes

Sure, $500 million is just a drop in Accenture’s $16.47 billion revenue ocean for Q3 2024, but these AI projects are bursting with potential.

Right now, clients are just dipping their toes in the AI waters, but soon they’ll be diving in headfirst!

AI Adoption: Are Companies Ready to Shift Gears?

While everyone agrees AI is the future, not all companies are ready to scale up.

Those with solid digital foundations are speeding ahead, while others are just waking up to the massive investments needed for AI.

Think cloud migrations, modern ERP, and top-notch security layers – the whole shebang!

Also read: Big 4 firms scramble to win the consulting race. Investing over $4B in AI.

Scaling AI is Tricky

AI isn’t just plug-and-play. It requires a complete overhaul of processes, retraining of staff, and building new capabilities. Many companies need to streamline their

Accenture’s Golden Opportunity

Generative AI is nudging companies to cut costs and revamp their digital cores. This spells big business for Accenture.

With their expertise in strategy, consulting, technology, and operations, they are perfectly positioned to lead these transformations.

Client Success Stories

1. Global Food & Beverage Company: They whipped up a generative AI engine that speeds up e-commerce content creation. What used to take a year now takes just eight days, saving up to 80% in costs. Talk about efficiency!
2. National Australia Bank: Built a secure AI platform with 200 use cases. Twenty are tested, eight are scaling, and all are enhancing customer service and operations.
3. Saudia Airline: Developed a snazzy digital platform with generative AI that lets customers plan trips, book flights, and modify their journeys with ease. Personalized, conversational, and continuously evolving.

Also read: Future of AI is India: Why finance professionals in India must prioritize upskilling

Hiring for AI Talent

The company’s headcount increased to around 750,000 as of 2024, which is up from 733,000 employees in August 2023.

However, in 2023, the company announced layoffs of 19000 employees.

The CEO mentioned Accenture will double its AI practice from 40k to 80k employees.

Accenture’s Massive AI Upskilling Drive

Accenture dedicates over $1 billion annually to a diverse array of learning and training programs for its 700,000+ employees, providing around 40 million training hours each year.

The organization is implementing training for 250,000 technology professionals by the end of fiscal 2024.

Moreover, Accenture has already provided basic AI training to its 600,000+ employees.

Accenture Learnvantage

In March 2024, Accenture announced a jaw-dropping $1 billion investment and the launch of LearnVantage – a service set to fill the skills gaps in business leaders and their teams. It intends to upskill its clients in Gen AI, data science, cloud, and cyber security.

As part of this investment, they have made a deal to purchase Udacity to strengthen their learning and training resources.

The entire suite of LearnVantage services is projected to be ready for use later this year, once the Udacity acquisition is finished.

Also read: Meta’s CEO Mark Zuckerberg to build AGI, a type of AI that can perform any intellectual task like humans

About Accenture 

Accenture, headquartered in Dublin, Ireland, has grown into a worldwide leader in IT services and consulting. This Fortune Global 500 company has an impressive reach:

• Present in over 120 countries
• Operations in 49 nations
• Offices in more than 200 cities globally

With a robust $64.1 billion in revenue for fiscal year 2023, Accenture is a major player in the tech consulting world.

Leadership 

Chair and Chief Executive Officer – Julie Sweet

Chief Financial Officer – KC McClure

Chief Technology & Innovation Officer – Paul Daugherty

Chief Operating Officer – John Walsh

Chief Strategy Officer – Bhaskar Ghosh

Chief A.I. Officer – Lan Guan

Chief Marketing and Communications Officer – Jill Kramer

Wrapping up…

Generative AI is the hot new trend, and it’s driving big business for Accenture. Even if your company isn’t on the AI train yet, understanding and preparing for it is key. All roads lead to AI,

Let us wait and watch.