Hackett: Generative AI Will Drive Profound Reductions In SG&A Cost and Staffing -- Up to 40% Over the Next Five to Seven Years
21 Septembre 2023 - 4:00PM
Business Wire
Hackett Also Launches Two New Solutions
Offerings to Help Clients Understand the Impact of Artificial
Intelligence
Generative artificial intelligence (AI) technologies will have a
profound potential impact on selling, general and administrative
(SG&A) costs and staffing, enabling reductions of up to 40%
over the next five to seven years, according to new research from
The Hackett Group, Inc. (NASDAQ: HCKT). The detailed analysis of
current SG&A costs engaged proprietary performance benchmarks
from The Hackett Group® to quantify for the first time the
potential impact Generative AI will have on SG&A, including
finance, procurement, human resources, information technology,
marketing, sales and other functions.
For a typical $10 billion company, Generative AI has the
potential to reduce SG&A costs by more than $180 million
annually, the research found. The cost estimates were derived from
an analysis of actual performance data for hundreds of components
and subcomponents in 17 major end-to-end processes across the
SG&A spectrum. The analysis considered: the elimination of
structured work through hyper-automation; the ability to enable
unstructured work by adopting digital assistants; and enhancing
interactive work through personalization at scale. The total value
potential impact was then calculated by accumulating process
components across all SG&A functions.
The Hackett Group also announced the availability of two new
solutions offerings designed to help clients understand the impact
of Generative AI on SG&A, develop their own implementation
plans, and keep up with the rapidly evolving technology landscape.
A new Generative AI Executive Advisory Program has been launched,
and The Hackett Group is completing development of its AI Explorer
assessment tool to help clients understand the impact of AI on
their operations.
A complimentary version of The Hackett Group’s research note,
“Generative AI Will Yield 40% SG&A Cost Reduction,” is
available with registration at
https://go.poweredbyhackett.com/gai2308sm. More information on The
Hackett Group’s digital transformation services is available here:
https://www.thehackettgroup.com/digital-transformation/.
According to The Hackett Group Principal Vin Kumar, “There’s a
tremendous amount of hype in the market around Generative AI, and a
lot of confusion over its potential impact on cost and staffing.
But for the first time, we’ve taken a fact-based approach to
validating the eye-popping headlines and quantified the potential
benefit based on an analysis of data from our extensive
benchmarking of Global 1000 companies across the various SG&A
functions. We’ve concluded that Generative AI plays a critical role
in the intelligent automation framework, which includes robotic
process automation, intelligent data capture, cognitive tools and
more. It has a multiplier effect in terms of enabling dramatic
efficiency and effectiveness improvements in structured,
unstructured and interactive work. Without Generative AI, companies
will see only incremental reductions in cost and staffing from
these other intelligent automation technologies.”
Chief of Research John Van Decker said, “Now is the time to
educate management on the capabilities, limitations of the
technology, relevant policies and potential impact on staffing;
assess how generative AI can be adopted in your organization; and
partner with technology and/or digital automation teams to take
full advantage of generative AI’s capabilities. In the SG&A
area, domain-specialized Generative AI is particularly relevant. By
providing Generative AI with the necessary process knowledge and
integrating it with other intelligent automation solutions,
companies can begin utilizing it quickly for transactional SG&A
tasks and mature over time to autonomous operations.”
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT) is a leading
benchmarking, research advisory and strategic consultancy firm that
enables organizations to achieve Digital World Class®
performance.
Drawing upon our unparalleled intellectual property from more
than 25,000 benchmark studies and our Hackett-Certified® best
practices repository from the world’s leading businesses –
including 97% of the Dow Jones Industrials, 93% of the Fortune 100,
73% of the DAX 40 and 52% of the FTSE 100 – captured through our
leading benchmarking platform Quantum Leap® and our Digital
Transformation Platform, we accelerate digital transformations,
including enterprise cloud implementations.
For more information on The Hackett Group, visit:
https://www.thehackettgroup.com/; email info@thehackettgroup.com;
or call (770) 225-3600.
# # #
The Hackett Group, Hackett-Certified, quadrant logo, World Class
Defined and Enabled, Quantum Leap, Digital World Class and Hackett
Value Matrix are the registered marks of The Hackett Group.
Cautionary Statement Regarding “Forward-Looking”
Statements
This release contains “forward-looking” statements within the
meaning of Section 27A of the Securities Act of 1933 as amended and
Section 21E of the Securities Exchange Act of 1934, as amended.
Statements including without limitation, words such as “expects,”
“anticipates,” “intends,” “plans,” “believes,” seeks,” “estimates,”
or other similar phrases or variations of such words or similar
expressions indicating, present or future anticipated or expected
occurrences or outcomes are intended to identify such
forward-looking statements. Forward-looking statements are not
statements of historical fact and involve known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results, performance or achievements to be materially different
from the results, performance or achievements expressed or implied
by the forward-looking statements. Factors that may impact such
forward-looking statements include without limitation, the ability
of The Hackett Group to effectively market its digital
transformation and other consulting services, including its
Generative AI Executive Advisory Program, competition from other
consulting and technology companies that may have or develop in the
future similar offerings, the commercial viability of The Hackett
Group and its services as well as other risk detailed in The
Hackett Group’s reports filed with the United States Securities and
Exchange Commission. The Hackett Group does not undertake any duty
to update this release or any forward-looking statements contained
herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20230921811129/en/
Gary Baker, Global Communications Director - (917) 796-2391 or
gbaker@thehackettgroup.com
Hackett (NASDAQ:HCKT)
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