The companies hope to broaden enterprise adoption of generative AI by pairing Microsoft’s technology with Cognizant’s digital advisory services and customer base.
Microsoft is opening another route for extending the reach of its Copilot offerings in the enterprise through an expanded partnership with global professional services company Cognizant.
As part of the deal, Cognizant has acquired 25,000 Microsoft 365 Copilot seats, and 500 each of Sales Copilot and Services Copilot, for use by its associates across the globe. The multinational IT services giant aims to leverage the tools internally to streamline workflows, improve efficiency, and enhance customer experiences.
But the partnership seeks to go beyond Cognizant’s internal use, with Microsoft and Cognizant teaming up to promote generative AI use across Cognizant’s global client base through the advisory and digital transformation services arm of Cognizant’s business.
The service provider plans to help deploy Microsoft 365 Copilot across its extensive client network, targeting a million users among its 2,000 global customers in 11 different industries. To support the effort, Cognizant’s Synapse skilling program, which has already trained 35,000 developers on GitHub Copilot, aims to uplevel more than 1 million individuals with AI skills by 2026, according to the company.
“Generative AI can be a game-changer for virtually every business in every industry, opening up new possibilities for innovation, efficiency and growth,” Ravi Kumar S, the CEO of Cognizant, said in a news release. “That’s why we are investing $1 billion in generative AI over the next three years and leading the development of new research to explore its potential for our clients, their employees, and end customers.”
The announcement comes amid reluctance among some CIOs regarding the ROI of generative AI copilots. Many see the high price tag of initial offerings and a lack of understanding as to how workflows will need to be adjusted to truly capture the value of copilots as deterrents to signing on for the added functionality.
The partnership between Cognizant and Microsoft may help ease some of that, as Cognizant’s consulting services can help enterprises find ways to leverage copilots as part of their business processes.
Bernard Marr, author of the book Generative AI in Practice: 100+ Amazing Ways Generative Artificial Intelligence is Changing Business and Society, sees the partnership representing a significant shift in how CIOs approach digital transformation.
“It means they can now leverage AI technology to enhance operational efficiency, reduce manual work, and innovate at scale,” he said. “CIOs will need to focus on aligning AI-driven solutions with broader business strategies, ensuring seamless integration into existing processes while addressing potential challenges like data security and ethical AI use. This partnership provides CIOs with access to AI tools that can greatly accelerate innovation and improve customer experiences.”
However, Marr said that the reduced need for labor due to AI automation does not necessarily translate into reduced costs. While AI can streamline workflows and enhance productivity, there’s a significant investment in AI infrastructure, training, and ongoing maintenance, he said.
“Moreover, the value delivered by AI goes beyond simple task automation — it includes enhanced innovation, improved quality, and additional capabilities that would otherwise require extensive human resources,” he added. “Therefore, while AI can reduce manual labor, its impact on costs should be viewed within the broader context of the added value it brings.”
AI concerns remain
While the collaboration between Microsoft and Cognizant might help CIOs better integrate generative AI into their enterprise strategies, its use still carries uncertainties, Marr said.
“Copilot, like other AI tools, should be seen as an assistant that requires human oversight to ensure accuracy and reliability,“ he said.
As generative AI (genAI) becomes more widespread among the public and businesses, its integration faces challenges like errors, copyright issues, and hallucinations, which can erode trust in its accuracy. A Stanford University study revealed that genAI often incorrectly answers legal questions, performing as poorly as random guessing in tasks such as assessing the precedential relationship between court cases, for example. The issue stems from the underlying large language models (LLMs), which are vague in their parameters and influenced by the biases of the humans who train them.
A further issue is determining who bears responsibility for mistakes that generative AI copilots introduce into a work product. Marr emphasized that multiple factors need to be considered to establish who is responsible when AI tools lead to mistakes.
“Generally, companies deploying AI solutions like Copilot are responsible for ensuring the accuracy and quality of their outputs,” he said. “If an error arises due to AI, it is the company’s responsibility to rectify it and address any repercussions. Clear contractual agreements and a thorough understanding of AI limitations are crucial to navigating liability issues. Ensuring human oversight and rigorous quality checks can mitigate the risks associated with AI errors.”
Another ongoing challenge that many companies face is navigating the competing copyright claims surrounding AI technology. If a company uses a tool like GitHub Copilot to create code, the company is responsible if the AI’s work violates copyright laws, Marr said.
“Companies must ensure that AI tools like Copilot are trained on datasets with appropriate copyright clearance and that their use complies with intellectual property laws,” he added. “Organizations should implement robust checks to prevent copyright infringement and have clear policies on handling such issues if they arise. This reinforces the need for a responsible and ethical approach to using AI in business.”
Having big names like Microsoft and Cognizant involved in implementing generative AI could assuage fears about the risks surrounding its use. Craig Powers, who leads digital business strategies research for the market intelligence firm IDC, said the primary concerns for CIOs when it comes to AI technology are security and privacy. “Many have worked with Microsoft as part of their digital business transformation efforts before, so using a product from a trusted platform provider delivered by a leading services organization should help address some of those concerns,” he said. “However, it’s important to consider that two-thirds of CIOs polled by IDC in a recent CIO Quick Poll say they don’t believe their technology vendors fully understand the risks of AI, so it will be incumbent upon Cognizant and Microsoft to articulate and address those risks with CIOs at end-user companies.”
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