Cognizant will now make investments in generative AI technologies like ChatGPT, according to CEO Ravi Kumar, who took over for Brian Humphries.
The announcement follows the company’s announcement that it will let go of about 3500 workers or 1% of its workforce. In order to save expenses during the difficult circumstances the IT business has been through, Cognizantr has additionally indicated that it will close some office spaces.
According to the Economic Times, Cognizant is now developing a new technology dubbed “generative AI” that can accelerate the work of their personnel in a variety of fields like consulting, design, engineering, and operations. Kumar, the new CEO of Cognizant, made this statement.
With the help of this technology, they want to eventually quadruple the productivity of their staff.
What Did The CEO Said?
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In the post-earnings call, CEO Ravi Kumar stated that “generative AI is the technology trend that everyone is thinking about, with recent breakthroughs offering the potential to fundamentally transform our clients’ businesses and increase our own productivity.”
Kumar continued by saying that generative AI is receiving increased funding. They have a procedure called the “AI accelerator” that entails working with clients in unique settings to identify the most crucial applications for AI and swiftly producing test versions of solutions to put to use in the real world.
“We’ve held brainstorming sessions with more than 30 clients, and we’re currently working to commercialize solutions to their common problems.
We think generative AI will revolutionize the IT services sector, boosting productivity and elevating the status of software and data engineering professionals, he was cited as saying by ET.
Cognizant is making cuts
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Kumar only recently made it official that the company will be making some layoffs. According to him, non-billable overheads and corporate operations will be affected in addition to the effects on personnel.
Since only 10-15% of workers in each Indian company visit offices and 30–40% of Indian IT workers are dispersed throughout tier II and III cities, there would be a structural shift in real estate costs.
In these cities, Kumar believes that building social capital is crucial. The Cognizant layoffs are the outcome of a two-year reorganization plan.
To compensate for the costs associated with employee layoffs, Cognizant plans to spend $200 million. These expenses, which are primarily scheduled to occur in 2023, are primarily for non-billable and corporate workers.