Accenture took in $600m from generative AI advice in its latest quarter, as consultancies race to win a slice of a lucrative new revenue stream.
The professional services firm booked $1.1bn for the six-months to the end of February, according to results published 21 March, a bright spot in otherwise flat revenue overall.
Accenture expects full-year revenue growth of just 1% to 3%, according to updated forecasts.
Julie Sweet, chair and chief executive of Accenture, said:
“In an uncertain macro environment, we remain the trusted partner to our clients for reinvention.”
“We also extended our early lead in generative AI... and we are investing to serve the needs of our clients and expand our growth opportunities.”
Major consultancies are fighting to cut costs and find new growth areas to offset shaky client demand. Amid a dearth of deals and a fragile economy, leading businesses are proving reluctant to spend on external consultants as they try to keep a lid on their own costs.
EY spent hundreds of millions on an aborted plan to split its consulting and audit divisions into two separate firms, partly an effort to minimise conflicts of interest stopping its advisory business winning more work from major spenders.
Deloitte has also just launched a restructure, reducing its overall number of units to keep overheads down.
Sourced from: Financial News London