Cognizant to invest in ChatGPT-like AI tools

Cognizant is now investing in generative AI tools like ChatGPT. This was confirmed by CEO Ravi Kumar, who has succeeded Brian Humphries. Kumar, the new CEO of Cognizant, has said Cognizant is currently testing new technology called "generative AI" that can speed up the work of their employees in various areas such as consulting, design, engineering, and operations. The news comes after the company confirmed that it will terminate around one per cent of its workforce. 

"The tech trend on everyone’s mind is generative AI with recent breakthroughs offering the potential to fundamentally transform our clients’ businesses and increase our own productivity," CEO Ravi Kumar said during the post-earnings call. 

Kumar further added that they are investing more in generative AI. “We have a process called the "AI accelerator" which involves working with clients in special environments to find the most important ways to use AI, and quickly creating test versions of solutions to try out in the field,” he said. 

Kumar confirmed only a couple of days ago that the layoffs are going to take place in the company. He said that the impact on employees will be felt across corporate functions and non-billable overheads. There will be a structural shift in real estate costs since only 10-15 per cent of the workforce in every company in India comes to offices, and 30-40 per cent of Indian IT workers are located in tier II and III cities and have not returned. Kumar feels that it is essential to create social capital in these cities.  

The layoffs in Cognizant are happening as a result of a two-year rejig programme. Cognizant plans to spend $200 million to cover costs related to laying off employees. These costs are mainly for non-billable and corporate personnel and are expected to happen mostly in 2023.