Press release
Hackett: Generative AI Will Drive Profound Reductions In SG&A Cost and Staffing -- Up to 40% Over the Next Five to Seven Years
Hackett Also Launches Two New Solutions Offerings to Help Clients Understand the Impact of Artificial Intelligence MIAMI--(BUSINESS WIRE)-- Generative
About this update from The Hackett Group, Inc.
[{"type":"text","content":"\nHackett Also Launches Two New Solutions Offerings to Help Clients Understand the Impact of Artificial Intelligence\n\n\n MIAMI--(BUSINESS WIRE)--\nGenerative 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.\n\n\nFor 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.\n\n\nThe 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.\n\n\nA 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/.\n\n\nAccording to The Hackett Group Principal Vin Kumar, “There’s a tremendous amount of hype in the market around Generative AI, and ...