Cognizant and Google Cloud Expand AI Partnership to Drive Software Development Productivity

Rhea-AI Summary

Cognizant and Google Cloud expand their partnership to enhance software development with Gemini AI, aiming to boost productivity and efficiency. Cognizant will invest $1 billion in generative AI over three years, training 70,000 associates on Google Cloud's AI technologies.

Technology Investment Analyst

The adoption of Gemini for Google Cloud by Cognizant represents a strategic move to enhance its competitive edge in the technology services industry. By equipping 70,000 associates with advanced AI tools, Cognizant is poised to significantly improve its software development lifecycle, potentially leading to cost savings and efficiency gains. This initiative could result in a more robust service offering, attracting new clients and retaining current ones, thereby potentially increasing Cognizant's market share.

Investors should note the alignment with industry trends towards AI integration and the potential for this investment to translate into increased revenue streams from higher-margin services. However, the $1 billion investment over three years in generative AI technologies must be monitored for ROI, as the tech sector is known for rapid obsolescence and the need for continuous innovation.

AI Technology Expert

Integrating Gemini's AI capabilities into Cognizant's internal operations could lead to a transformation in how the company handles incident reports, develops code and manages IT operations. The AI-powered chat capabilities within Cognizant Flowsource™️ and the personalized user experience for Cognizant Neuro® AI are examples of how AI can streamline processes and enhance productivity.

However, the long-term success of such AI integrations depends on the effectiveness of the AI models in real-world scenarios, the adaptability of the workforce and the security and ethical considerations surrounding AI usage. The establishment of Gemini Studios and Centers of Excellence indicates a commitment to developing deep AI expertise, which could be a differentiator in the market.

Corporate Strategy Analyst

Cognizant's collaboration with Google Cloud and its focus on generative AI is a strategic response to the growing demand for AI-driven solutions across industries. The company's plans to establish dedicated Google Cloud delivery centers and expand its presence in strategic locations like India underscore its commitment to leveraging AI for global market penetration.

The potential $1 trillion injection into the U.S. economy by 2032, as suggested by the Cognizant and Oxford Economics study, indicates a substantial market opportunity. However, execution risks and the ability to scale AI solutions effectively remain potential challenges. Cognizant's strategy will require careful execution to ensure that the benefits of AI are fully realized and sustainable over the long term.

Cognizant will adopt Gemini for Google Cloud to accelerate velocity for its software developers and enable more than 70,000 associates on Google Cloud's latest AI technologies

TEANECK, N.J. and SUNNYVALE, Calif., March 21, 2024 /PRNewswire/ -- Cognizant (NASDAQ: CTSH) and Google Cloud today announced an expansion of their partnership to enhance the software delivery lifecycle and accelerate developer productivity.

Cognizant will adopt Gemini for Google Cloud in two ways: first, by training Cognizant associates to use Gemini for software development assistance; and second, Cognizant is integrating Gemini's advanced capabilities within its internal operations and platforms. Using Gemini for Google Cloud, Cognizant's developers will be equipped to write, test, and deploy code faster and more effectively with the help of AI-powered tools, improving the reliability and cost efficiency of building and managing client applications.

The potential impact of increased development productivity is underscored by findings from a recent Cognizant and Oxford Economics study, New Work, New World, which revealed generative AI could inject up to $1 trillion into the U.S. economy by 2032. Through the collaboration, Cognizant and Google Cloud will utilize Gemini to deliver a broad range of benefits to enterprise clients across industries, helping them build applications quickly, rigorously test code, and swiftly remediate issues to optimize performance throughout the software delivery lifecycle.

"Software development is one of the jobs likely to benefit most from the way generative AI is redefining the anatomy of work," said Ravi Kumar S, CEO, Cognizant. "Cognizant has committed to investing $1 billion in generative AI over three years because we believe it is a powerful tool to amplify human potential, and our partnership with Google Cloud is central to this commitment, and to realizing this vision."

Over the next 12 months, and in line with the company's Synapse initiative to upskill one million individuals globally by 2026, Cognizant will invest in enabling more than 70,000 associates across multiple Cognizant functions on Google Cloud's AI offerings. Additionally, Cognizant will work to integrate Gemini into its suite of automated platforms and accelerators, beginning with the recently announced Cognizant Flowsource™️ platform for developers.

"Generative AI has the potential to significantly improve every stage of the software delivery lifecycle, helping developers quickly generate code, troubleshoot issues, and automate processes," said Thomas Kurian, CEO, Google Cloud. "By training and enabling its workforce on Gemini for Google Cloud, Cognizant can expedite the speed and quality of software development projects for joint customers."

Bringing gen AI capabilities into Cognizant's proprietary internal operations and platforms will help the consulting firm foster deeper insights, optimize processes, and improve user experiences, securely and responsibly. Expected key benefits include:

• Enhancing Cognizant's ability to analyze incident reports, quickly identify root causes, and implement resolutions across its platforms.
• New AI-powered chat capabilities within Cognizant Flowsource™️, enabling users to accelerate development of code, automate tests and documentation, and increase self-service automation for business users.
• A more intuitive and personalized user experience for business users and IT teams, applying Gemini's natural language interface for Cognizant Neuro^® AI and Cognizant Neuro^® IT Operations, so users can easily request status updates on operations and request new services.
• Faster information retrieval and analysis within Cognizant Neuro^® IT Operations, enabling users to quickly extract the insights needed to do their day-to-day work. Users can use a natural chat interface to rapidly query knowledge base articles, manuals, best practices, and more.

In line with Cognizant's plans to invest in deep AI-related competencies, the company will establish a Gemini Studio within each of its Cloud AI Innovation hubs in Bangalore, London, and Plano, Texas, to help enterprise customers ideate, architect, and scale AI solutions. Cognizant will also establish Gemini Centers of Excellence within its new dedicated Google Cloud delivery centers in Mexico and Romania, and it will continue its expansion in India to accelerate customer success with generative AI solutions.

Google Cloud will support Cognizant in the continued development of AI-led software engineering best practices, and by helping the Cognizant Google Cloud AI University launch advanced courses on AI use cases.

Cognizant is a global systems integrator partner for Google Cloud and a Luminary Sponsor for the Google Cloud Next '24 conference. In May 2023, Cognizant announced a major gen AI partnership with Google Cloud. This partnership was further expanded in August 2023 to create healthcare large language model solutions and bring the potential of generative AI to a range of healthcare business challenges.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

About Google Cloud
Google Cloud is the new way to the cloud, providing AI, infrastructure, developer, data, security, and collaboration tools built for today and tomorrow. Google Cloud offers a powerful, fully integrated and optimized AI stack with its own planet-scale infrastructure, custom-built chips, generative AI models and development platform, as well as AI-powered applications, to help organizations transform. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology partner.

For more information, contact:

U.S. Name Ben Gorelick Email benjamin.gorelick@cognizant.com

Europe / APAC Name Christina Schneider Email christina.schneider@cognizant.com

India Name Rashmi Vasisht Email rashmi.vasisht@cognizant.com

 

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SOURCE Cognizant

What is the purpose of Cognizant adopting Gemini for Google Cloud?

Cognizant aims to enhance software development, accelerate developer productivity, and improve the reliability and cost efficiency of building and managing client applications.

How many associates will Cognizant invest in training on Google Cloud's AI offerings?

Cognizant plans to enable more than 70,000 associates across multiple functions on Google Cloud's AI offerings.

What is the potential economic impact of generative AI according to a recent study?

Generative AI could inject up to $1 trillion into the U.S. economy by 2032, as revealed by a Cognizant and Oxford Economics study.

What key benefits are expected from bringing gen AI capabilities into Cognizant's internal operations and platforms?

Expected benefits include enhancing incident analysis, implementing resolutions, automating processes, improving user experiences, and enabling faster information retrieval and analysis.

Where will Cognizant establish Gemini Studios and Centers of Excellence?

Cognizant will establish Gemini Studios in Bangalore, London, and Plano, Texas, and Centers of Excellence in Mexico, Romania, and India.