Gen AI to push demand for software-led services: Capgemini Research

Bengaluru, 22 November: Revenue contribution from software-driven services is likely to grow 29 per cent of organisations by 2030 from around 7 per cent in 2022 on the back of improving demand for such services with the advent of generative AI tools.

According to Capgemini Research Institute’s report titled ‘The Art of Software: the new route to value creation across industries’, organisations across all industries are re-defining themselves as software companies, transitioning away from traditional hardware-centric business. This momentum will provide boost to more demand for software-based service offerings.

Across industries, software and software-enabled technologies such as cloud, Internet of Things (IoT), high performance networks (including 5G), and AI/ML are accelerating innovation and research & development (R&D) for products and services, crafting personalized customer experiences, introducing new revenue streams and business models, and reducing costs, the report added.

Especially, the advent of generative AI has accelerated this trend. As demand for connected, intelligent products and services grows, organisations are turning to technologies like generative AI to assist engineers throughout the software development lifecycle and accelerate the delivery of the software code.

According to the report, generative AI tools are expected to increase the time saved for software engineering from 15 per cent to 43 per cent over the next three years.

“Seven in 10 organisations plan to use generative AI to complement and augment existing software engineering over the next year and expect these tools to assist in the creation of 37 per cent of code in the coming three years. Only 28 per cent of organisations surveyed have stated that they don’t intend to use generative AI to aid software engineering in the next 12 months,” the report indicated.

“We have entered a new era of software-led business. Organisations require a mindset shift if they are to differentiate, innovate and remain competitive. Thinking must move away from using digital technologies as an add-on, or tool to fix crinkles and smooth edges. Instead, leaders must view software as a key strategic asset which can unlock a myriad of benefits and establish competitive differentiation,” William Rozé, CEO of Capgemini Engineering and Member of Capgemini’s Group Executive Board said.