Enterprises Embrace Generative AI for Competitive Edge, ISG Provider Lens™ Report Reveals

Rapid growth in generative AI adoption drives businesses to invest in technology, according to today’s ISG report.

The global shift towards generative AI is accelerating, compelling companies to invest strategically in this technology to stay ahead in the market, a recent report published by Information Services Group (ISG) III indicates.

The 2024 ISG Provider Lens™ global Generative AI Services report marks a milestone as the first of its kind from ISG. It highlights that many organizations are actively pursuing ways to utilize generative AI to enhance efficiency and expedite innovation. The cost-cutting and efficiency benefits of generative AI enable businesses to perform tasks more accurately and rapidly, ultimately leading to the development of new products and services that can generate additional revenue.

“Organizations are discovering use cases for generative AI that yield a tangible return on investment while supporting long-term goals,” remarks Steve Hall, president and chief AI officer of ISG. “Through collaboration with service providers, businesses select flexible AI technologies that can adapt as they grow.”

In the past year, projects involving generative AI have surged, with a notable focus on text-based applications. This trend is attributed to user-friendly interfaces, quick returns, and their overall versatility. Companies are particularly enthusiastic about deploying chatbots powered by large language models (LLMs) to deliver personalized customer support, automate communications, and enhance overall engagement.

Despite these advances, many companies have yet to explore generative AI’s capabilities in areas like images, audio, and video. The report notes that while multimodal generative AI continues to develop before reaching mainstream usage, innovative applications are increasingly surfacing thanks to ongoing developments in neural networks and deep learning techniques.

ISG points out that there’s a significant shift in generative AI application development. Instead of merely fine-tuning existing large language models, businesses are gravitating towards creating smaller, industry-specific models—particularly in sectors like healthcare, finance, and manufacturing. This shift reflects the growing recognition of the benefits of creating custom AI models tailored to specific needs, addressing objectives like privacy and security, customized task specialization, and seamless integration into current business processes. Many organizations are leveraging established AI platforms and toolsets to support these initiatives.

Companies utilizing IoT devices near network edges are beginning to integrate generative AI models into these systems. By employing techniques like model compression and optimization, they can maintain performance while reducing software and processing needs.

“Generative AI is expanding into various applications and locations,” comments Jan Erik Aase, partner and global leader of ISG Provider Lens Research. “Service providers play a key role in aligning these technologies with both application and hardware needs.”

The report also delves into other emerging trends in enterprise generative AI, such as increasing interest in systems that enable AI to function autonomously and the adoption of low-code or no-code tools for developing generative AI applications.

For further insights into challenges faced by enterprises regarding generative AI and ISG’s recommendations for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ global Generative AI Services report evaluates the capabilities of 79 providers across six categories: Strategy and Consulting Services — Large Providers, Strategy and Consulting Services — Midsize Providers, Strategy and Consulting Services — Specialists, Development and Deployment Services — Large Providers, Development and Deployment Services — Midsize Providers, and Development and Deployment Services — Specialists.

Notable companies recognized as Leaders in two quadrants each include Accenture, Apexion, Ascendion, Birlasoft, Brillio, Capgemini, Cognizant, DXC Technology, EXL, Fractal, GlobalLogic, HARMAN, Hexaware, IBM, Infosys, Leeway Hertz, Mathco, Network Science, NTT DATA, Persistent Systems, Quantiphi, Sagility, TCS, Tiger Analytics, Tredence, Unisys, UST, Version 1, Virtusa, Wipro, and WNS Analytics. Deloitte, HCLTech, and Trigent are named Leaders in one quadrant each.

Additionally, HTC Global Services and Sigmoid are recognized as Rising Stars, with promising portfolios and significant potential, in two quadrants each. HCLTech and Tech Mahindra also make the Rising Star list in one quadrant each.

In customer experience, HCLTech is awarded the global ISG CX Star Performer for 2024 among generative AI service providers, achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey—a key component of the ISG Star of Excellence™ program, which honors quality in technology and business services.

Customized versions of the report are available from EXL, GlobalLogic, Navikenz, Persistent Systems, Trigent, Unisys, Version 1, Virtusa, and WNS.

Subscribers can access the 2024 ISG Provider Lens™ global Generative AI Services report, or it may be purchased for one-time access on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series stands out as the only service provider evaluation that blends data-driven research and market analysis with insights from ISG’s global advisory team. The report equips enterprises with detailed research and market insights to aid in selecting suitable service partners while also supporting ISG advisors in validating their market expertise and guiding their enterprise clients. The research encompasses providers operating worldwide, covering regions such as Europe, the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia, and Singapore/Malaysia, with additional markets expected to follow. For more details on ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) III is a premier global technology research and advisory firm. Serving over 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is dedicated to supporting organizations in achieving operational excellence and rapid growth. The firm concentrates on digital transformation services, such as AI, cloud, and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence; and technology research and analysis. Established in 2006 and headquartered in Stamford, Conn., ISG employs over 1,600 professionals globally and is renowned for its innovative insights, industry impact, and research capabilities grounded in comprehensive market data. For further information, visit www.isg-one.com.

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