Accenture Invests $3 Billion in AI Practice, Aiming to Double Its AI Talent

Global professional services firm Accenture is allocating $3 billion over the next three years to enhance its data and artificial intelligence (AI) practice, with the intention of training over 250,000 employees in AI. Accenture CEO Julie Sweet announced this initiative during a recent earnings call.

This investment is part of a broader strategy to bolster the company’s AI capabilities across various industries. The goal of Accenture’s data and AI division is to double its workforce of AI specialists from 40,000 to 80,000 through a mix of hiring, acquisitions, and extensive training.

“Approximately 600,000 of our employees have already been trained in the fundamentals of AI,” Sweet remarked during the call. “We are committed to further equipping over 250,000 individuals to utilize new AI tools in an equitable, sustainable, and unbiased manner.”

Sweet also emphasized the company’s progress in deep AI and generative AI (gen AI) areas, supported by investments in its AI academy. Accenture is on track to increase its number of deeply skilled data and AI professionals significantly.

The firm is beginning to realize revenue from generative AI contracts, suggesting a promising new income source as it intensifies its focus on AI technologies.

With a market capitalization of approximately $194.45 billion, Accenture has consistently improved its earnings per share and has increased its dividend for four consecutive years. This performance highlights the company’s robust earnings quality, where free cash flow surpasses net income. Accenture is a significant player in the IT services sector, operating with a P/E ratio of 28.3 and generating revenue of $64.11 billion.

The company’s dedication to AI is evident in its recent results, reflecting a total return of 18.26% over the past year. Analysts noted a fair value of the shares at around $297.21, indicating favorable market reactions to Accenture’s initiatives.

According to analysts, while the company boasts a high return on assets and usually experiences low stock price volatility, seven analysts have adjusted their earnings forecasts downward for the upcoming period, suggesting potential challenges. Nevertheless, Accenture’s strong fundamentals and strategic investments in AI position the firm favorably for future growth.