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Business / Fri, 07 Jun 2024 Moneycontrol

Only 10% of 300-400 Gen AI implementations have scaled, delivered value, says TCS

Representative imageIT services company Tata Consultancy Services (TCS) said less than 10 percent of the Generative Artificial Intelligence (Gen AI) use-cases out of the 300-400 use-cases have scaled and delivered value in large companies. The comments come at a time when Gen AI PoCs are being increasingly rolled out into production by enterprises. Also read: Gen AI PoCs will be scaling to production incrementally, says TCS CTO Harrick VinKrish compared the potential of Gen AI to historical technological advancements that democratised various aspects of work. Drawing parallels to the adoption of cloud computing a decade ago, Krish expects that Gen AI would follow a similar trajectory. Also read: How this TCS executive-cum-food influencer uses Gen AI to manage close to a million followers

Representative image

IT services company Tata Consultancy Services (TCS) said less than 10 percent of the Generative Artificial Intelligence (Gen AI) use-cases out of the 300-400 use-cases have scaled and delivered value in large companies.

Nonetheless, that number is expected to increase once ways are found to solve more problems, a top company executive said while speaking at the India Global Innovation Connect event in Bengaluru.

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“What we've seen for the last one year -- having done about 300-400 implementations -- is that less than 10 percent of Gen AI implementations in large companies eventually scale and deliver value right now,” said Ashok Krish, Global Head - AI.Cloud Advisory & Consulting, TCS.

The comments come at a time when Gen AI PoCs are being increasingly rolled out into production by enterprises.

Krish explained the nuances of deploying Gen AI, saying that it goes beyond simply implementing large language models (LLMs) to solving work problems. “This is an exponential technology, and in a year, we’ll be discussing entirely different challenges,” he said.

Also read: Gen AI PoCs will be scaling to production incrementally, says TCS CTO Harrick Vin

Krish compared the potential of Gen AI to historical technological advancements that democratised various aspects of work. He said the shift from the “how” to the “what” of work will free up more employees to focus on the “why” of a problem.

He said that traditionally, this kind of “declarative” thinking has been reserved for managers, but Gen AI will throw open a range of roles to engage in thinking and problem-solving.

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Krish agreed that while there is significant excitement across all sectors regarding Gen AI, the challenges and opportunities vary. For example, banks and life science sectors have more financial resources, but they have to navigate tough regulatory hurdles.

Also read: BFSI global capability centres bullish on Gen AI despite regulatory hurdles

On the other hand, retailers and consumer packaged goods (CPG) companies tend to be more cost-conscious, yet they are making more experiments with Gen AI in areas like contact centres and shopping assistance, Krish said.

He also mentioned that sectors like electronics are beginning to explore Gen AI for internal functions such as human resources and finance, though large-scale adoption is still some time away.

Krish further said that while many Gen AI Proofs of Concept (PoCs) may not scale to full production, they still offer valuable learning experiences. “(Every) PoC may not get scaled to production but you still learn a lot and then… that PoC gives birth to another POC,” he explained.

“So it's a continuous stream of investment that's happening anywhere,” he added.

Drawing parallels to the adoption of cloud computing a decade ago, Krish expects that Gen AI would follow a similar trajectory.

Also read: How this TCS executive-cum-food influencer uses Gen AI to manage close to a million followers

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