In the latest earnings call on December 20, 2024, Accenture announced that its orders in the field of generative artificial intelligence (AI) reached a record $1.2 billion. This brings the company's total sales in generative AI to $4.2 billion since September 2023, marking a new quarterly sales high in this area and reflecting the increasing investment from clients in generative AI.
Image Source Note: Image generated by AI, image licensed from Midjourney
Looking back at the earnings report from September 2024, Accenture reported generative AI revenue of $1 billion, showing significant growth compared to $900 million in the previous quarter. For the first time since June 2023, Accenture disclosed specific figures for generative AI transactions, reporting $100 million in pure generative AI project sales for that quarter. Today's sales figures are nearly double those of the last quarter.
Accenture's CEO, Julie Sweet, stated during the call that there is no fundamental difference in productivity enhancement through generative AI; the key lies in whether clients allow the company to utilize these technologies and prioritize relevant projects. She emphasized that organizations must first establish a solid data foundation before expanding AI applications. Nevertheless, Sweet noted that overall client spending on smaller transactions has not significantly improved, but as market conditions improve, Accenture will be able to seize more opportunities to meet clients' priority needs.
In the August 2024 earnings report, Accenture confirmed receiving $1 billion in generative AI orders, bringing its annual total to $3 billion. This business segment accounted for 6.4% of the overall $18.7 billion in orders for the quarter. Meanwhile, Accenture added 24,000 employees in that quarter, raising its total workforce to 799,000, with a significant portion of hiring taking place in India. Sweet added that the number of employees in the data and AI sectors is also steadily growing, with approximately 57,000 professionals currently employed.
Despite strong performance, Accenture maintains a cautious outlook on the global economy. First-quarter revenue was $17.69 billion, an increase of 7.8% from the previous quarter. This led the company to raise its annual growth forecast from 3-6% to 4-7%. In contrast, Indian IT companies have yet to disclose similar generative AI revenue figures.
Additionally, in October, Accenture established a partnership with NVIDIA, launching the Accenture NVIDIA Business Group aimed at helping enterprises expand AI applications. This initiative includes training 30,000 professionals globally to assist clients in redesigning processes and scaling the use of enterprise AI systems.
Key Highlights:
🌟 Accenture's orders in the generative AI field reached a new record of $1.2 billion, with total sales of $4.2 billion.
📈 The company's CEO emphasized the importance of establishing a data foundation for the expansion of AI applications.
🤝 The partnership with NVIDIA aims to accelerate the promotion and application of enterprise AI.
