“What happened in 2023, which is so interesting, is the democratization of generative AI,” Paul Daugherty, chief technology and innovation officer at Accenture, tells me. “That’s really what ChatGPT did. Anybody could use it from the board member to the C-suite to the frontline employee to the student.”

With the proliferation of generative AI, Accenture made a big bet on the longevity of the technology. The global professional services company announced in July a $3 billion investment over three years in its Data and AI practice for clients. And the practice will double its AI talent to 80,000 professionals through a mix of hiring, acquisitions, and training, according to Accenture (No. 220 on the Fortune Global 500). The company has over 700,000 employees around the world.

How is the initiative progressing so far? “In the last, roughly six months since we’ve mobilized, we’ve had 3,000 client conversations and have 300 projects underway,” Daugherty says. 

“Some of the bigger industries that we’re seeing making moves would be banking and financial services,” he says. And consumer goods is also having a lot of activity, he adds. 

In a year, things sure have changed. Back in early 2023, some banks forbade their employees to use ChatGPT. And now, I think it would be fair to say that many C-suite leaders have done an about-face and are considering investing in generative AI. 

The recent Accenture Pulse of Change survey found that 92% of CFOs surveyed intend to increase technology investments in 2024, with the No. 1 priority being AI.

But, globally, the C-suite’s top concern going into 2024 is adapting to advancements in technology and innovation, like AI and automation. This is even ahead of concerns around cyberattacks and data breaches, Accenture found.

So, if 2023 was all about access to generative AI, what’s Daugherty’s prediction for 2024 regarding the technology?

“2024 will be the year when I think leading companies will start to look at scaled applications of generative AI,” he explains. “I think we’ll see most companies look to establish the foundation in terms of centers of excellence of responsible AI capabilities that they need to put in place to move forward.”

He continues, “2024 will move to establishing the real foundation to drive the business and the ROI.” 

Speaking of ROI on AI, Microsoft commissioned a global study through IDC that surveyed over 2,000 business leaders across the C-suite. For every $1 companies invest in AI, they are realizing an average of $3.5 in return, according to the study released this month.

“We believe that generative AI, ultimately, in the long term, will lead to real business reinvention,” Daugherty says.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Jennifer Fox, CFO at Nuvation Bio Inc. (NYSE: NUVB), a biopharmaceutical company, is stepping down from her role to pursue a new opportunity, effective Nov. 27. Fox submitted her resignation on Nov. 9. Members of the executive management team and the company’s finance team will assume the duties and responsibilities of the CFO office, according to the company.

Mark Secor, EVP and CFO of Horizon Bancorp, Inc. (Nasdaq GS: HBNC), is stepping down from his role. The transition comes at a time of restructuring. Secor will continue in the role until a successor is appointed and provide transitional support through April 30. The company has begun a national search for a new CFO.

Big deal

New S&P Global Market Intelligence data found that global private equity and venture capital investments fell in October, with aggregate transaction value of $27.10 billion, down 36.1% from $42.44 billion in the same month a year ago. The research found that since August, monthly deal value has been on a downward trend. 

Taking an annual look, through Oct. 31 deal volume fell 40.3% to $375.16 billion from $628.70 billion in the first 10 months of 2022. The number of deals stood at 9,990 compared with 14,715 in the previous year, according to the report.

S&P Global Market Intelligence found that the U.S. and Canada posted the highest deal value in October with $13.13 billion, but down from $18.42 billion from a year ago.

Going deeper

Want a guide to understand more about generative AI? Here's one that also answers questions like, why do these systems seem to be finding their way into practically every application imaginable? In a new article, "Explained: Generative AI," MIT AI experts help break down the ins and outs of the technology.

Overheard

"We believe the new tech bull market has now begun and tech stocks are set up for a strong 2024 as the AI spending tidal wave hits the shores of the broader tech sector."

—Wedbush analyst Dan Ives wrote in a Nov. 12 note to investors. "A key theme from this tech earnings season has been that AI monetization has begun to positively impact the tech sector with Microsoft, Datadog, and Palantir all delivering robust results that give further confirmation that AI use cases are exploding across the enterprise and consumer landscape," Ives wrote.