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Accenture On Track to Make $2.4 Billion from Generative AI

Written by Mike Kaput | Apr 9, 2024 12:38:16 PM

Accenture is one of the firms making the most money from generative AI right now.

The company just reported that it had $600 million in new generative AI bookings last quarter.

That's a whopping $2.4 billion annualized per year selling generative AI services.

The fiscal results don't specify which services, but:

We know from Accenture's website they offer generative AI implementation services. They also offer optimization services, where they offer pre built AI to clients.

And it certainly seems like those services are in demand, given the numbers.

What can business leaders learn from Accenture's success so far?

I got the answer from Marketing AI Institute founder / CEO Paul Roetzer on Episode 91 of The Artificial Intelligence Show.

Demand for these services is skyrocketing

“I think the $2 billion is just absolutely scratching the surface of the size of this market," says Roetzer.

He sees fierce demand for these services all the time in his work running Marketing AI Institute. That's because firms are struggling to effectively adopt generative AI. And they desperately need help from companies like Accenture.

"They don’t know where to turn, and everyone is trying to figure it out," says Roetzer.

What are companies trying to figure out exactly?

“When you look across what they’re doing and where the demand is, it’s still early," says Roetzer. "A lot of it is very foundational."

This includes getting their data in a place where generative AI models can use it. 

(In one example they shared, a client had over 50 enterprise data sources to merge into one.)

It also includes educating and training teams. This is a huge problem that Accenture seeks to address. In fact, they say leaders' #1 challenge is their inability to upskill their workforce. And 51% of firms are starting to see negative impacts from worsening IT skill shortages.

Not to mention, they found that 94% of workers want to learn generative AI skills. But only 5% of organizations provide generative AI training at scale.

The opportunity here is so large that Accenture wants to double its data and AI workforce by 2026. (Right now, they say they have over 53,000 practitioners.)

Roetzer says he wouldn't be surprised if generative AI becomes a $5-10 billion piece of business for Accenture in the next two years.

And it's a huge opportunity for every services firm

This is a huge opportunity for any services firm, not just Accenture, says Roetzer.

“We’ve been looking for hard data to show demand, adoption, and opportunity," he says. "This is now showing the demand is skyrocketing for this kind of stuff."

Large language model strategy and implementation. AI education and training. AI technology integration. Change management. These are all immediate opportunities for service providers to create value for clients.

“If you run an agency or you’re consulting, there's such a massive opportunity to help companies figure this out," he says.

That's especially true for the smaller businesses that Accenture doesn't work with. They'll all need the same help, too, says Roetzer.

“If I was still running an agency, this is what I would be doing.”