Active Stocks
Tue May 28 2024 15:59:27
  1. Tata Steel share price
  2. 174.85 -0.37%
  1. HDFC Bank share price
  2. 1,530.50 0.17%
  1. ITC share price
  2. 428.90 -0.60%
  1. State Bank Of India share price
  2. 830.90 -0.38%
  1. Infosys share price
  2. 1,466.20 -0.37%
Business News/ News / India/  Mid cap IT firms test generative AI tools internally before selling to clients
BackBack

Mid cap IT firms test generative AI tools internally before selling to clients

These companies are focussed on aligning generative AI with all their operations and becoming early movers in this segment, which currently contributes less than 1% of the $245 billion IT industry's revenues, according to experts.

While some mid cap firms have implemented test cases in their legal teams for things like document verification, others have developed chatbots for internal communication and dispute resolution.Premium
While some mid cap firms have implemented test cases in their legal teams for things like document verification, others have developed chatbots for internal communication and dispute resolution.

Bengaluru: Four mid-cap IT companies – Zensar Technologies Ltd, Sonata Software Ltd, Happiest Minds Technologies Ltd, and Hexaware Technologies Ltd – are rolling out generative artificial intelligence tools internally before selling those models to clients, company executives told Mint.

Most use generative AI across the board and have earmarked funds for developing and integrating AI into their businesses. While some have implemented test cases in their legal teams for things like document verification, others have developed chatbots for internal communication and dispute resolution.

Mid-cap IT companies are focussed on aligning generative AI with all their operations and becoming early movers in this segment, which currently contributes less than 1% of the $245 billion IT industry's revenues, according to experts. So far, of the big five Indian IT firms, only Wipro has committed $1 billion for generative AI over the next three years through its AI360 programme.

Software services companies said they provide proof of concept to clients before selling them generative AI tools. “This technology is pretty much cutting across every solution space, from legal to marketing and HR, encompassing every function in the organisation. So we identified the use cases, and we started rolling these out internally," said Sridhar Mantha, CEO of the generative AI business unit of Happiest Minds Technologies. The Bengaluru IT company first rolled out a generative AI chatbot that allowed employees to converse with its legal team.

While most companies use have implemented internal AI chatbots, Mumbai-based Hexaware Technologies is one of the few mid cap companies that's using generative AI for sales.

“Gen AI is being used for proposal responses, especially boilerplate items where material needs to be picked from multiple corporate courses," said Arun Ramchandran, president and global head – consulting & generative AI practice for hi-tech & professional services at Hexaware Technologies.

Ramchandran wrote in an emailed reply to Mint that his company was also using AI to generate the right content for client meetings in pre-sales situations, and to make presentations and create research-driven summaries of clients, prospects and competitors. “We are using the relevant co-pilots extensively for summarising meeting notes, actions and plans," he added.

On ways in which mid-tier IT companies could sell these tools to clients, Sonata Software told Mint it would launch generative AI offerings through its AI platform Harmoni.ai. “We have seen this accelerate in three ways – through our existing clients, our partners such as Microsoft Azure and Amazon Web Services, which help us accelerate access to the market, and through our marketing campaigns," said Rajsekhar Datta Roy, chief technology officer of Sonata Software.

While IT companies are optimistic about generative AI, they are also wary of the challenges posed by AI models, especially those related to intellectual property.

“You also have to remember that the IP issues of generative AI have not been fully resolved. We are actually transferring the IP to our clients. But if we are using generative AI in the underlying IP and if there is some doubt about that, then clients are not very comfortable unless they can understand the IP implications of that," said Manish Tandon, chief executive officer of Zensar Technologies.

Sonata Software also said it was important to use generative AI responsibly, within a prescribed framework. “AI also brings in risks of privacy, data protection, ethical consideration, and regulatory compliance," said Roy, adding that his company had created a responsible AI framework with its own IPs.

Mid cap firms are looking to strengthen their AI push over the next three years. While Hexaware has committed as much as $20 million to AI over the next three years, Happiest Minds expects to earn $200 million from generative AI by 2031.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 04 Feb 2024, 01:59 PM IST
Next Story footLogo
Recommended For You