Innovations in artificial intelligence (AI) are poised to positively impact technology consulting and services companies, according to J.P. Morgan. Analyst Tien-tsin Huang emphasizes that these advancements, collectively called GenAI, have the potential to generate substantial cost savings and revenue opportunities for businesses in this sector.
The increasing enthusiasm surrounding generative AI has been particularly notable in recent times. This branch of AI involves the assimilation of text, images, and videos in a brute-force manner for the purpose of creating content. OpenAI’s release of ChatGPT last year played a pivotal role in generating interest in this form of AI.
ChatGPT is a chatbot that utilizes a sophisticated language model to produce humanlike responses. It achieves this by analyzing statistical word relationships derived from vast amounts of data available on the internet or other texts.
Huang believes that technology services companies can leverage GenAI to enhance the productivity of their software engineers. By doing so, they can empower their clients to efficiently utilize internal corporate data, improve customer service, and explore innovative revenue streams.
Utilizing GenAI requires the expertise of top engineers from consulting firms who can curate and continually refine AI models. Huang asserts that enterprises may struggle with developing AI capabilities on their own due to a lack of technical know-how.
Contrary to concerns about AI making experienced developers less valuable, Huang predicts that the increased velocity of software development enabled by GenAI will heighten the demand for skilled developers. As a result, firms with a strong talent pool in this domain are likely to have a competitive advantage.
In light of these trends, Accenture (ACN), EPAM Systems (EPAM), and Globant (GLOB) are among the services companies that J.P. Morgan identifies as being well-positioned to benefit from AI developments.
