Generative AI models like ChatGPT will slow the growth of market share and lower prices for Indian consulting IT firms in the near term, according to JPMorgan analysts, Reuters reports.
Analysts say that in the near term, consulting giants such as Accenture and Deloitte may edge out Indian rivals such as Infosys Ltd and Wipro Ltd.
Analysts added that generative AI would become ‘deflationary engine’ for aging services. Unlike algorithms, the pricing of services and the need to retrain staff erode competitiveness.
‘ChatGPT is likely to have a greater impact on legacy services than on service applications,’ JPMorgan said.
Analysts noted that Indian firms Infosys and Tata Consultancy Services may retrain staff more quickly than smaller rivals, thanks to a developed hiring and graduate training infrastructure.
Earlier, Microsoft entered into a «multibillion-dollar, multiyear» deal with OpenAI. According to media reports, the investment amount could reach $10 billion.
The deal allowed the tech giant to integrate ChatGPT into Microsoft Bing.
Against a backdrop of rising competition in search, Google unveiled its conversational chatbot Bard. However, the service remains in closed beta.
In February 2023, Bill Gates called generative AI ‘the most important’ innovation of modern times.
In the same month, the race between Microsoft and Google chatbots spurred a rally in AI tokens.
In December 2022, Ethereum cofounder Vitalik Buterin questioned the possibility that ChatGPT could replace programmers in the near future.