JP Morgan’s Report on AI-Powered ChatBots’ Impact on India’s IT Sector
According to JP Morgan, generative AI models such as ChatGPT have the potential to simplify coding and democratize access to a larger pool of talent, resulting in a new source of disruption that can have a mix of headwinds and tailwinds for IT Services organizations.
Alarmists frequently claim that ChatGPT is on its way to taking over employment. Yet, given what OpenAI’s generative bot is capable of and how much money Microsoft is investing into ChatGPT, it appears that AI bots like ChatGPT will upset the concept of careers as we know it sooner rather than later.
What’s more intriguing, and possibly concerning, is how quickly it will disrupt entire sectors. According to a recent J.P. Morgan analysis, generative AI models like as ChatGPT could delay market share gains and deflate prices for Indian IT companies in the medium run, perhaps leading to enormous layoffs in an already struggling industry.
We can understand this impact in the following aspects:
AI bots have the potential to deflate the Indian Technology sector
Consultancy firms such as Accenture and Deloitte will gain market share over Indian IT firms such as Infosys Ltd and Wipro Ltd shortly as generative AI becomes more widely utilized, analysts at the brokerage said in a note to clients.
They believe that generative AI will be a “deflation driver” for legacy services shortly since it will compete on pricing, necessitate personnel retraining, and cause a loss of competitiveness.
OpenAI’s chatbot has wowed amateurs and industry experts alike with its capacity to spew forth haikus, debug code, and answer queries while emulating human speech, leading to a $10 billion investment from Microsoft earlier this month.
Not just wiping away jobs, but a whole evolution!
Having said that, it is unlikely to eliminate work, but rather to alter the structure of work and employment as we know it today.
According to the study, AI chatbots would help boost efficiency and increase employability, contrary to popular assumption. The models will also save money by “creating a new arena for change management initiatives,” according to the authors.
Yet, AI, like all other technologies, has limitations. According to the report, these are the outcome of a new deflationary driver in managed services projects, as well as the need to retrain workers who have been made redundant.
AI is not without its difficulties
According to a JP Morgan study, generative AI could be a deflationary driver in the short term for legacy services and pricing in general, necessitating staff retraining and resulting in a loss of competitiveness.
Some firms have been testing with OpenAI and GPT3 in the previous year, according to the report, and numerous service providers are already working on projects integrating ChatGPT/GPT3.
With such trends, consulting legacy firms such as Accenture and Deloitte, as well as digital native organizations, are positioned to win market share over Indian Tech enterprises in the short run. Companies with a stronger graduate recruiting and training infrastructure, like Infosys and TCS, are more likely to retrain staff faster than smaller competitors, according to the survey.
Way Forward
According to the report, the Indian IT sector should take the necessary efforts to implement chatGPT or GPT3 apps to remain competitive in the industry. It also says that Indian IT firms should concentrate on developing new services and novel use cases to offset the likely deflationary effect of chatGPT. Furthermore, the research recommends IT firms engage in worker training and retraining to keep up with the pace of technology.
Conclusion
The introduction of chatGPT has been keenly anticipated by investors, with Microsoft investing a hefty $10 billion in the AI chatbot. However, other internet behemoths like Alibaba, Baidu, and Alphabet have introduced their own AI chatbot competitors. In reaction to chatGPT, Google created BardAI, its own AI chatbot.
Despite the enthusiasm and promise of AI chatbots, experts warn that they are still far from replacing human tasks. They are designed to provide the greatest web search experience possible by delivering contextually relevant information as well as good language and grammatical knowledge of the human language. AI chatbots, on the other hand, have been known to give hallucinations and inaccurate facts, making it impossible for businesses to rely completely on them.
