Global technology and consulting giant Accenture Plc has announced a landmark achievement, reporting over $1.1 billion in revenue from advanced artificial intelligence (AI) for its first fiscal quarter ending November 2025. This figure represents a staggering 120% year-on-year growth from the $500 million reported in the same period last year.
The End of an Era: Why Accenture is Stopping AI-Specific Disclosures
In a significant strategic shift, Accenture declared that this quarterly report will be the last time it breaks out specific numbers for its AI business. The company stated in its earnings presentation that advanced AI has become so deeply integrated into its operations and client solutions that isolating it is no longer meaningful.
Accenture Chair and CEO Julie Sweet explained the rationale, stating that AI demand is evolving beyond standalone projects. "It has become less meaningful to isolate the data specifically for advanced AI, as it does not reflect how the demand is evolving on the ground, the scope, the full scope of our AI work and the value we're creating," Sweet said.
Expert View: A Pragmatic Move to Avoid Confusion
Industry analysts support Accenture's decision, viewing it as a natural progression. Phil Fersht, CEO of HFS Research, called the move pragmatic rather than evasive. He noted that generative AI is now embedded across deals, pricing, and delivery models, making a single revenue line potentially misleading.
"Disclosing a headline number risks creating more confusion than clarity," Fersht commented. "Much of the value is tied to transformation programs, productivity gains, and multi-year platform builds rather than pure GenAI licences or projects." He added that Accenture is positioning GenAI as part of its core operating model.
Indian IT Peers: TCS and HCL Begin Quantifying AI Growth
Accenture's announcement comes less than a day after India's Tata Consultancy Services (TCS) revealed its own AI business metrics. During an analyst day on Wednesday, TCS disclosed that its AI-related revenue reached an annualised $1.5 billion at the end of the September quarter.
This development highlights the differing stages of AI adoption between global and Indian IT majors. Among large Indian IT firms, only TCS and HCL Technologies currently quantify AI business. HCL reported $100 million in AI revenue for the July-September quarter of 2025.
Fersht suggested that Indian firms are now highlighting these numbers to signal market momentum and catch up with early adopters like Accenture, which first reported $100 million in AI business just 30 months ago in early 2023.
Market Context and Future Outlook
Despite the AI boom, Accenture maintained a cautious overall outlook. The company posted total Q1 revenue of $18.74 billion, a 6.5% sequential increase. However, it retained its full-year revenue growth guidance of 2-5% in local currency, indicating persistent market uncertainty.
CEO Julie Sweet acknowledged the challenging environment, stating that the pace of overall and discretionary spending remains similar to the past year. She emphasised that client reinvention driven by AI is critical, allowing Accenture to gain market share.
This guidance may set a sobering tone for Indian IT services companies, which are set to announce their third-quarter results next month. For now, investors remain optimistic about the sector's AI potential, with TCS shares closing 2% higher on Thursday following positive brokerage reactions to its AI strategy.
