Current volatility may be tailwind for AI-led projects

Accenture execs said clients in wait and watch mode, and it may take a quarter to note impact

- Alokesh Bhattacharyya

It will take about a quarter for clients, who have now hopped on to the fence, to gauge the impact of tariffs brought in by the US administration, two top officials of Accenture Plc told Mint in an interview.

Pointing out that the current volatility may actually provide impetus for artificial intelligence (AI)-led transformation by companies, they added that companies are moving more than a quarter of their annual technology spends to AI-led solutions, especially generative AI or GenAI.

Ryoji Sekido, chief executive officer (CEO) for Asia Oceania at Accenture, the global IT services market leader, said it's a bit early to have any speculative discussion, but uncertainty and volatility are definitely increasing.

"That's why clients are seeking more compelling business cases and very tangible solutions, whether we can deliver the outcome of whatever transformation they try to start or even based on even AI."

To be sure, the reciprocal tariffs were paused for 90 days on 9 April by US President Donald Trump. Sekido agrees that has given industry some time to prepare. "At the same time, my point of view is this kind of volatility is going to be more of a tailwind to accelerate AI transformation by clients."