The global services industry is on the brink of major disruption as artificial intelligence (AI) continues to advance and transform conventional business models. Despite the lack of tech talent, the Massive Four consulting firms – Deloitte, PwC, EY and KPMG – collectively achieved revenues of more than $200 billion in fiscal 2023. This demonstrates the potential of AI to drive growth and expand opportunities in the industry, even without a huge pool of experts technical.
One of the key examples of a successful company providing services based on artificial intelligence is Palantir. Through its data analytics and AI-powered solutions, Palantir has carved a niche for itself in the industry and demonstrated the power of AI in delivering groundbreaking services to customers. This success is a model for other companies looking to leverage AI to improve business outcomes, as evidenced by Palantir’s market capitalization of over $40 billion.
IT services, accounting and customer service are areas of the global services industry that are susceptible to disruption from artificial intelligence. By 2027, the market size of AI in IT services alone is expected to reach $168 billion, underscoring the enormous opportunities that AI presents in streamlining processes and optimizing efficiency in this sector. Similarly, AI will revolutionize accounting practices, with the market size of AI in accounting expected to reach $4.3 billion by 2025. AI’s automation and data analytics capabilities will enable faster and more exact financial reporting, transforming conventional accounting practices.
Customer service is another area in the service industry that could benefit from AI disruption. With AI-based chatbots and virtual assistants, companies can improve customer service, reduce response times and enhance efficiency. The AI in customer service market size is projected to reach $11.6 billion by 2025, highlighting the growing importance of AI in this sector.
In cybersecurity, artificial intelligence has enormous potential to revolutionize the way companies detect and respond to threats. With AI-powered automation, companies can more effectively analyze and address security vulnerabilities, reducing the risk of large-scale breaches. This is especially vital in a chronically understaffed industry, as AI technology helps companies stay ahead of evolving cyber threats.
Indian service companies also have an opportunity to reinvent themselves and prevent outsiders from disrupting their market share. By investing in artificial intelligence capabilities and leveraging data analytics capabilities, Indian companies can unlock novel opportunities for growth and innovation. Implementing AI will be critical for Indian service companies to remain competitive in a rapidly evolving industry landscape and meet the evolving needs of customers around the world.
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The views expressed above are those of the author.
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