How much money can be made from AI and which types of businesses will reap long-term benefits? It’s still an open question. Monetization is still in early innings.
While many companies are excited about the potential impact of AI on their businesses, non-infrastructure names have been less willing to quantify those gains in dollar terms.
AI consulting is thriving
The companies that were most likely to quantify revenue derived from artificial intelligence were consultants, confirming what we already knew - everyone needs help with their AI strategy.
- Accenture (ACN): Generated $900 million in new Gen AI bookings and $500 million in revenue YTD compared to $100 million in FY23. Jun 20, 2024: Q3 2024
- International Business Machines (IBM): Gen AI accounts for $2+ billion book of business since inception - one quarter software and three-quarters consulting signings. Jul 24, 2024: Q2 2024
- IBM attributed $1+ billion to Gen AI since inception in the previous quarter. Apr 24, 2024: Q1 2024
- Booz Allen Hamilton (BAH): AI revenue grew to nearly $600 million in FY24, with aspirations to grow this business to $1 billion in the next couple of years. May 24, 2024: Q2 2024
- BAH neglected to quantify AI revenue in the most recent quarterly call. Jul 26, 2024: Q1 2025
The few companies that did quantify the artificial intelligence contributions to their business beyond consulting included:
- Datadog (DDOG): AI-native customers were over 4% of their total ARR, an increase from 2.5% last quarter. Aug 08, 2024: Q2 2024
- TE Connectivity (TEL): Expected to double their AI revenues from $200 million this year to $400 million next year, with a goal of achieving annual revenues of roughly $1 billion in the following few years. Apr 24, 2024: Q2 2024
- TEL neglected to quantify AI revenue in the most recent quarterly call. Jul 24, 2024: Q3 2024
- Hewlett Packard Enterprise (HPE): Reported AI system product revenue more than doubled sequentially to over $900 million, with a backlog now at $3.1 billion. Jun 04, 2024: Q2 2024
- ServiceNow (NOW): The net new annual contract value from Gen AI product, Now Assist, doubled quarter-over-quarter and continues to trend ahead of any new product family launch for the comparable period. Jul 24, 2024: Q2 2024
- Amphenol (APH): The majority of the year-over-year revenue growth of $300 million came from AI. Jul 24, 2024: Q2 2024
- Keysight Technologies (KEYS): Its telecommunications orders grew double digits in Q3, with AI being a major driver of this growth. Aug 20, 2024: Q3 2024
We find it interesting that both TEL and BAH quantified AI business in the previous quarter but not in the most recent call.
Find companies that started discussing AI only after the hype cycle started on Hudson Labs market intelligence here.
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