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Genpact and Microsoft team up for AI-driven finance

EditorAhmed Abdulazez Abdulkadir
Published 30/04/2024, 17:24
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NEW YORK - Genpact (NYSE: NYSE:G), a global professional services firm, has announced a strategic collaboration with Microsoft (NASDAQ:MSFT) to leverage artificial intelligence (AI) in transforming finance functions for businesses worldwide. This partnership aims to combine Microsoft Azure OpenAI Service with Genpact's expertise in finance and accounting services to innovate and streamline financial operations.

The initiative is set to enhance decision-making processes within finance organizations by integrating AI, data, and technology. Balkrishan "BK" Kalra, President and CEO of Genpact, emphasized the company's long-standing experience in the sector and its commitment to utilizing AI to evolve finance functions into strategic, data-centric operations that bolster growth and competitiveness.

Genpact has already started to see benefits from its responsible use of Azure OpenAI Service, achieving substantial improvements in its own finance operations. These enhancements include advanced AI algorithms for vendor management, which have led to a doubling of supplier satisfaction and an 85% accuracy rate in responses. Additionally, Genpact has revamped its customer collections process through AI-powered analytics and automation.

Moreover, the firm has introduced an AI-driven digital assistant that employs natural language processing (NLP) and machine learning (ML) to streamline tax document submissions, resulting in a 53% decrease in support tickets and an improved employee experience.

Nicole Dezen, Chief Partner Officer at Microsoft, highlighted the transformative impact of AI on the finance industry, noting that the partnership with Genpact will empower finance organizations to capitalize on data-driven business transformation.

The collaboration builds upon Genpact's AI-first strategy, which integrates data, technology, AI, and industry partnerships to deliver results for stakeholders, clients, communities, and talent. This news is based on a press release statement.

InvestingPro Insights

As Genpact (NYSE: G) forges ahead with its AI-first strategy through a pivotal partnership with Microsoft, the company's financial metrics underscore its robust position in the market. With a market capitalization of $5.6 billion and a notably low P/E ratio of 9.05, the professional services firm is trading at an attractive valuation relative to its near-term earnings growth.

InvestingPro data reveals that Genpact's revenue growth over the last twelve months as of Q4 2023 stands at 2.42%, with a gross profit margin of 35.08%, indicating a healthy profitability from its operations. The company's ability to maintain a consistent dividend payout, having raised its dividend for 7 consecutive years, is a testament to its financial stability and commitment to shareholder returns. This is further evidenced by a dividend growth of 22.0% over the same period.

InvestingPro Tips highlight Genpact's strategic financial management, with the firm actively engaging in share buybacks, showcasing management's confidence in the company's value. Additionally, Genpact's status as a prominent player in the Professional Services industry is reflected in its consistent performance and the strategic initiatives it undertakes, such as the recent collaboration with Microsoft.

For investors seeking comprehensive analysis and additional insights, InvestingPro offers more tips on Genpact, which can be explored at https://www.investing.com/pro/G. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 12 InvestingPro Tips that delve deeper into the company's financial health and market potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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