How are AI and emerging GenAI tools transforming service models to drive automation, efficiency and personalization across various industries?
Artificial Intelligence (AI) has long been the backbone of innovation, quietly transforming industries and reshaping business operations. With the rise of generative AI (GenAI), the way services are delivered is about to be redefined. The journey through AI’s progression has been both reflective and anticipatory and over the years, AI has driven profound changes, setting the stage for advancements that once seemed like science fiction.
For example, over the past eight to nine years, the development of platforms like DryiCE and AI-led initiatives such as AEX have been integral to clients’ operations – the same goes for intelligent solutions for engineering, testing and technical support . This is because these tools have driven significant gains in automation, productivity and efficiency.
The journey began with foundational applications like recommendation engines on Netflix and YouTube but this was just the beginning. Industries quickly expanded their use of AI into vertical-specific applications including customer segmentation in retail, fraud detection in financial services or predictive maintenance in manufacturing.
Looking ahead, McKinsey predicts that GenAI could add the equivalent of $2.6 trillion to $4.4 trillion in economic value annually, with about 75% of the value that GenAI use cases could deliver falling across four areas: customer operations, marketing and sales, software engineering and R&D.
The hype cycle: GenAI vs. past technologies
Technological hype cycles are nothing new. We’ve seen similar buzz around technologies like the metaverse and blockchain, which raises the question of whether GenAI represent a different trajectory or will it face a similar fate?
While technologies like blockchain and the metaverse haven’t disappeared, their adoption hasn’t matched the initial hype. GenAI, however, is proving to be different. It’s not just another technology wave; it’s incredibly pervasive. GenAI is being integrated into a myriad of applications, from automation to language translation. Gartner reports a 30% increase in GenAI adoption over the past year alone, illustrating its broad impact.
One of the key challenges with new technologies is transitioning from pilot projects to full-scale production. With GenAI, this shift has been remarkably smooth. We’re witnessing robust traction among organizations and customers as they move to production, and not just any production —production at scale. For instance, GitHub Copilot, a code assistant platform from Microsoft, has rapidly grown to an annual recurring revenue (ARR) of nearly $100 million.
Change management also plays a critical role in the transition from pilot projects to full-scale production and with the help of structured frameworks, organizations are being guided through the AI adoption process. This ranges from ROI assessment to continuous benefits measurements with AI platforms. These frameworks ensure that organizations not only understand the new skill sets and methodologies required but also effectively manage the upskilling of their workforce and the integration of AI-driven practices.
Driving service transformation across industries and the road ahead
It is important to note that the impact of GenAI is not limited to a single industry. Sectors like high-tech, financial services and healthcare are leading the charge in AI-driven service transformation.
Looking ahead, the future of AI and GenAI-driven service transformation is bright with even greater adoption across industries as the technology continues to evolve. We’re also seeing transformative use cases in education and healthcare, where access to technology can make a significant difference.
The journey of GenAI is just beginning. As technology continues to evolve, the future of service transformation holds boundless potential for innovation and progress.
About the Author
Apoorv Iyer is Senior Vice President at HCLTech. HCLTech is a global technology company, home to more than 218,000 people across 59 countries, delivering industry-leading capabilities centered around digital, engineering, cloud and AI, powered by a broad portfolio of technology services and products. We work with clients across all major verticals, providing industry solutions for Financial Services, Manufacturing, Life Sciences and Healthcare, Technology and Services, Telecom and Media, Retail and CPG, and Public Services. Consolidated revenues as of 12 months ending September 2024 totaled $13.7 billion.
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