Dive Transient:
- Generative AI continues to drive large-scale digital transformation, as enterprises modernize and construct out knowledge infrastructure to assist the expertise, Accenture Chair and CEO Julie Candy mentioned Thursday, talking throughout the firm’s Q1 2025 earnings name.
- The IT providers agency booked $18.7 billion in new business, together with $1.2 billion attributed to generative AI, throughout the three-month interval ending Nov. 30. Revenues elevated 9% 12 months over 12 months to $17.7 billion, cut up nearly evenly between $9 billion in consulting and $8.6 billion in managed providers, the corporate mentioned.
- “Our purchasers are targeted on reinvention, which implies massive scale transformation,” Candy mentioned. “We don’t at present see an enchancment in general spending by our purchasers, notably on smaller offers.”
Dive Perception:
Firms are shifting IT investments to areas that can assist them scale AI with out ballooning budgets. Because the spending pattern coalesced during the last 12 months, Accenture tailored its enterprise technique.
“Once we noticed the constrained spending, notably on the smaller offers, we pivoted to essentially deal with profitable extra reinvention companions of alternative,” Candy mentioned.
Analysts count on progress within the global market for IT subsequent 12 months, as huge tech masses up on GPUs and hyperscalers double down on infrastructure buildouts.
However enterprises stay cautious about spending, according to ISG. Whereas executives plan to extend AI investments by 5.7% subsequent 12 months, they intend to maintain a decent rein on general IT spend, funding modernization investments by optimizing prices elsewhere.
Accenture has seen that sample coalesce during the last a number of months, in response to Candy. “The dual themes are value effectivity and progress,” she mentioned Thursday. “Each business needs value effectivity now, they usually’re searching for progress.”
Cloud and knowledge modernization stay the keys to unlocking AI worth and powering progress by way of enterprise adoption of the expertise.
Accenture expanded its hyperscaler partnerships earlier this 12 months, deepening an alliance with Google Cloud to advance AI adoption amongst Fortune 500 corporations in August and cementing a three-way pact with AWS and Anthropic in March.
Enterprises eager to scale AI are turning to cloud-based platform options, Candy mentioned. “We’re seeing an acceleration of the info work, which is totally elementary to utilizing GenAI,” she added.
