GenAI Cracks Brazilian Market with Productivity Promise

Rhea-AI Summary

Information Services Group (ISG) reports that Brazilian enterprises are increasingly adopting generative AI to enhance productivity, overcoming initial skepticism about issues like hallucinations and data leaks. Companies are implementing GenAI for personalized customer service, software development, and data analysis. The technology is being used to translate legacy programming languages, automate development cycles, and generate analyses including graphs and maps.

Service providers are helping large enterprises implement control procedures while offering preconfigured solutions for midsize companies. The 2024 ISG Provider Lens™ study evaluates 37 providers across four quadrants, with several companies named as Leaders and Rising Stars in multiple categories.

Positive

• Companies are successfully implementing GenAI applications showing extraordinary results
• Technology adoption is improving productivity in software development and customer service
• Service providers have effectively addressed major adoption barriers
• Market shows growing demand for GenAI strategy and consulting services

Negative

• None.

Insights

Technology Market Analyst

The expansion of GenAI services in Brazil represents a significant market opportunity for ISG (III). The report highlights substantial growth potential in both large enterprise and mid-market segments, with multiple revenue streams including consulting, implementation and managed services. The removal of adoption barriers and successful use cases in customer service and software development indicate accelerating market penetration.

ISG's positioning as a leading advisor in this space, evidenced by their comprehensive provider analysis covering 37 vendors, strengthens their market authority. The company's ability to monetize this expertise through customized reports and advisory services should drive revenue growth. The Brazilian market's transition from skepticism to adoption suggests an inflection point that could accelerate ISG's consulting and research service demand.

Market Research Analyst

The Brazilian GenAI services market shows strong growth indicators with multiple positive catalysts. Key market segments include:

• Enterprise strategy and consulting services
• Development and deployment services
• Preconfigured solutions for mid-sized companies
• Digital agent generation platforms

The transition from initial skepticism to practical implementation, particularly in customer service automation and software development, indicates market maturation. This evolution creates sustained demand for ISG's research and advisory services, potentially driving higher subscription and consulting revenues in the near to medium term.

After initial skepticism, companies begin adopting GenAI to personalize customer service, streamline development, make better use of data, ISG Provider Lens™ report says

SÃO PAULO--(BUSINESS WIRE)-- Many enterprises in Brazil have overcome major concerns about generative AI and are using it to boost their productivity, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Generative AI Services report for Brazil finds that the rise of GenAI in 2022 and 2023 was initially greeted with fear, skepticism and organizational bans. Since then, companies have seen how problems such as hallucinations, data leaks, copyright violations and unpredictable costs can be solved.

“GenAI use cases in Brazil have delivered extraordinary results,” said Steve Hall, president and chief AI officer of ISG. “Service providers have largely removed barriers to adoption, and GenAI is poised to make enterprises more competitive.”

Companies in Brazil are implementing many applications that use GenAI’s ability to “learn” from vast amounts of structured and unstructured data, including text, images and audio, ISG says. In addition to summarizing content and answering questions about data, GenAI can build databases and generate analyses, which can include graphs and maps. One of the most valuable applications GenAI has opened up is personalized, automated customer service, which is replacing older service bots.

The technology is also changing how companies in Brazil carry out software development, the report says. It can translate legacy programming languages into modern ones, facilitating the migration of applications into cloud environments. GenAI also automates parts of the development cycle, such as generating test documentation and identifying bugs, leading to significant productivity gains.

Brazilian companies are investing in development and deployment services to minimize the challenges of rolling out GenAI, ISG says. For example, providers are helping large enterprises concerned about data breaches, hallucinations, biases and inappropriate material to implement control procedures. Many midsize companies that lack the data maturity to develop customized solutions are adopting preconfigured solutions as quick and efficient entry points to GenAI adoption.

Growing acceptance of GenAI in Brazil has also increased demand for strategy and consulting services that help enterprises integrate it into their organizations, the report says. Providers are helping large organizations identify the business problem at hand, assess the viability of GenAI as a solution and define an implementation strategy. Many midsize companies, such as law firms, are turning to providers for expert guidance in organizing and preparing their data for use with GenAI.

“Executives in Brazil want to avoid either using GenAI as a blanket solution or being too cautious and falling behind competitors,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers can play a key role in guiding them toward success.”

The report also examines other GenAI trends affecting Brazilian enterprises, including the advent of digital agent generation platforms and considerations for GenAI in highly regulated industries.

For more insights into the GenAI-related challenges facing enterprises in Brazil, as well as ISG’s advice for charting a path forward, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Generative AI Services report for Brazil evaluates the capabilities of 37 providers across four quadrants: Strategy and Consulting Services — Large Providers, Strategy and Consulting Services — Midsize Providers, Development and Deployment Services — Large Providers and Development and Deployment Services — Midsize Providers.

The report names A3Data, Accenture, BRQ, CI&T, Compass UOL, Deal, Inmetrics, Logicalis, MadeInWeb, NTT DATA, Peers and Stefanini as Leaders in two quadrants each. It names Deloitte and TIVIT as Leaders in one quadrant each.

In addition, BRLink is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. DXC Technology and GFT are named as Rising Stars in one quadrant each.

Customized versions of the report are available from A3Data, BRQ, MadeInWeb, Peers and TIVIT.

In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2024 among GenAI service providers. HCLTech earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Generative AI Services report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241119174273/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Thábata Mondoni, Mondoni Press for ISG

Mobile: +55 11 98671 5652

thabata@mondonipress.com.br

Source: Information Services Group, Inc.

FAQ

How are Brazilian companies using GenAI according to ISG (III) 2024 report?

Brazilian companies are using GenAI for personalized customer service, software development automation, data analysis, and legacy code translation according to the ISG report.

Which companies were named Leaders in ISG's 2024 GenAI Services report for Brazil?

A3Data, Accenture, BRQ, CI&T, Compass UOL, Deal, Inmetrics, Logicalis, MadeInWeb, NTT DATA, Peers, and Stefanini were named Leaders in two quadrants each, while Deloitte and TIVIT were Leaders in one quadrant.

What were the main barriers to GenAI adoption in Brazil that ISG (III) identified?

The main barriers initially were fears about hallucinations, data leaks, copyright violations, and unpredictable costs, which have since been largely addressed by service providers.