**London**: The integration of generative AI into supplier relationship management is transforming European businesses, enabling better data analysis, operational efficiency, and innovation. A recent ISG report reveals the evolving landscape of automation services, while addressing regulatory challenges and ethical AI practices in the region.
The integration of generative AI (GenAI) into supplier relationship management (SRM) is highlighted as a significant trend reshaping business operations across Europe. According to a recent report by Information Services Group (ISG), businesses are increasingly utilising GenAI to analyse vast amounts of unstructured supplier data, enabling them to extract critical insights that can enhance supplier relationships.
In a deeper examination of the evolving landscape, the 2024 ISG Provider Lens™ Intelligent Automation Services for Europe report lays out how GenAI employs large language models (LLMs) to streamline operations and improve decision-making processes. “GenAI has the potential to revolutionise intelligent automation, enabling organizations to analyse vast datasets and enhance their operational efficiencies,” stated Steve Hall, Chief AI Officer at ISG. Hall elaborated on how service providers are infusing GenAI capabilities into various automation use cases, thereby significantly accelerating the pace of innovation.
As enterprises in Europe adopt GenAI, the focus is shifting towards comprehensive automation solutions. Jan Erik Aase, partner and global leader at ISG Provider Lens Research, indicated that “the demand for intelligent automation services in Europe is rising, particularly within industries such as automotive, healthcare, finance and retail, which are focused on operational efficiency.” This transition marks a notable departure from traditional, fragmented approaches towards more integrated solutions.
However, the successful implementation of GenAI presents challenges, particularly when integrating these advanced systems with existing infrastructures, including legacy systems and diverse tools. The report suggests that automation service providers are ideally positioned to help organisations navigate these complexities, leveraging their expertise in technology integration and aligning with the automation maturity of businesses.
European enterprises adopt a more cautious approach to GenAI compared to their North American counterparts, largely due to regulatory concerns stemming from frameworks like the EU AI Act and GDPR. While the existing regulations are fostering a demand for ethically responsible AI solutions, they also shape the pace and nature of GenAI adoption.
Agentic AI emerges as another noteworthy advancement, representing a shift from conventional automation methods to systems that operate autonomously with minimal human intervention, capable of context-aware decision-making. This evolution is particularly prominent in applications related to customer service, employee onboarding, and supply chain management.
The ISG report also highlights other prominent trends affecting the intelligent automation services market within Europe, such as the ongoing demand for responsible AI practices and the skills shortages faced by both enterprises and automation service providers.
The report assesses the capabilities of 39 providers across three quadrants: Intelligent Enterprise Automation, Artificial Intelligence for IT Operations (AIOps), and Next-Gen Automation. Within this evaluation, Accenture, Capgemini, Tietoevry Tech Services, T-Systems, and Wipro are recognised as Leaders in three quadrants each. Cognizant, HCLTech, Hexaware, TCS, and WNS-Vuram are acknowledged as Leaders in two quadrants each, while DXC Technology, Eviden (Atos Group), EXL, Genpact, Infosys, and Tech Mahindra are noted as Leaders in one quadrant.
Additionally, Tech Mahindra has been designated as a Rising Star in one quadrant, reflecting a promising portfolio and high future potential. Persistent Systems has attained recognition as the global ISG CX Star Performer for 2024 among intelligent automation service providers, achieving the highest customer satisfaction scores according to ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program.
Customized versions of the report are available from Tietoevry, T-Systems, and WNS, and the full findings of the 2024 ISG Provider Lens™ Intelligent Automation Services report can be accessed by subscribers or via one-time purchase. The research not only highlights the capabilities of service providers but also serves as a guide for enterprises seeking to enhance their operational frameworks through intelligent automation and generative AI innovations.
Source: Noah Wire Services
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