Summary
Service providers are on the front lines of generative AI (genAI)-powered disruption. As pure “knowledge-plus-experience” businesses, fueled by knowledge and rewarded by billable hours, they are immensely exposed to genAI-powered disruption. In some cases, enterprise procurement is expecting and receiving 30% price reductions in the total cost to complete a project. Providers are responding by building genAI-powered delivery platforms, revisiting their core business models, and drawing down costs in advance of slowed or declining revenues.
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