Generative Artificial Intelligence (Gen AI) is rapidly transforming the operational landscape of Global Capability Centers (GCCs), offering innovative solutions to enhance efficiency and drive growth. Recent data underscores the significant impact of Gen AI on GCCs, particularly in regions like India and the Middle East. For instance, a 2024 EY survey revealed that 70% of GCCs in India have prioritized Gen AI, with 78% upskilling their teams for its adoption and 37% piloting use cases. Similarly the Middle East’s Gen AI economy is supposed to reach $24 billion annually by 2030 which highlights the significance of the growing technology.

The Gen AI Landscape in GCCs

Metric India GCCs GCC Region
Gen AI adoption in at least one function 70% 74%
Scaled implementation (over 5% of earnings from Gen AI) 15% 7%
Companies with Gen AI upskilling programs 78% ~60%
Estimated Gen AI Economy by 2030 $45B $24B

 

Here are seven strategic ways GCCs can leverage Gen AI to maximize success:

1. Enhancing Customer Experience

Gen AI enables GCCs to offer personalized and efficient customer interactions. According to the EY survey, 69% of GCCs plan to utilize Gen AI for customer experience improvements, such as automated chatbots and personalized support. These AI-driven tools can analyze customer data to provide tailored recommendations, leading to increased satisfaction and loyalty.​

70% of GCCs in the Middle East report using Gen AI to transform customer service functions.

  • AI chatbots, dynamic FAQs, multilingual support, sentiment detection.

  • A GCC for a telecom firm reported a 32% increase in CSAT (Customer Satisfaction Score) post-Gen AI deployment.

2. Streamlining Operations

The main focus is on the operational efficiency with 57% of GCCs aiming to use Gen AI for operational enhancements. By automating routine tasks and optimizing workflows, Gen AI reduces manual effort and minimizes errors, resulting in cost savings and improved productivity.​

 

Function Manual Time (hours/week) Post-Gen AI (hours/week) Reduction
Data entry 30 6 80%
Report generation 20 4 80%
Code reviews 10 3 70%

 

3. Strengthening IT and Cybersecurity

As there is an increase in the complexity of the cyber threats 47% of the GCCs are focusing on Gen AI for IT and cybersecurity improvements. AI algorithms can detect anomalies, predict potential security breaches, and respond swiftly to threats, thereby safeguarding sensitive data and maintaining trust.

GCCs are utilizing Gen AI for real-time threat intelligence.

  • 47% of GCCs have implemented Gen AI for proactive anomaly detection.

  • Applications:

    • Phishing detection using LLMs.

    • Predictive threat modeling.

    • Autonomous incident response.

AI-Cyber Integration Impact

Enterprises reported a 40% reduction in threat response time post-Gen AI deployment.

4. Driving Product Development

Gen AI accelerates innovation by assisting in product design and development. For example, Indian GCCs are now engaged in advanced tasks such as luxury car dashboard design and pharmaceutical drug discovery, expanding beyond traditional tech support functions. This capability allows GCCs to rapidly prototype and refine products, reducing time-to-market and enhancing competitiveness.​

GCCs for global product companies are now:

  • Designing dashboards for electric vehicles.

  • Running drug simulations for pharma.

  • Building software prototypes in half the original time.

Stage Pre-Gen AI (weeks) Post-Gen AI (weeks)
Ideation 4 1.5
Prototyping 6 2
Testing 5 2.5

 

5. Empowering Human Resources

In the realm of human resources, Gen AI can streamline recruitment by analyzing candidate data to identify the best fits for roles. It also aids in employee engagement through personalized training programs and career development plans, fostering a more satisfied and productive workforce.​

Gen AI improves hiring and employee retention by:

  • Screening resumes at a scale (getting 95% accuracy in the relevance matching).

  • Generating personalized onboarding content.

  • Enhancing learning paths with AI tutors.

AI-HR Outcome

Metric Pre-AI Post-AI
Avg. hiring time (days) 30 10
Retention improvement +18%

 

6. Enhancing Financial Management

Gen AI contributes to more accurate financial forecasting and risk assessment by analyzing market trends and historical data. This leads to better budgeting, resource allocation, and financial decision-making, ensuring fiscal health and strategic growth.​

AI models process real-time economic, geopolitical, and historical data to:

  • Predict demand trends with 90% accuracy.

  • Recommend cost optimizations.

  • Detecting expense anomalies.

Real-world example: A GCC in Riyadh saved $2.5M annually by detecting rogue vendor transactions using Gen AI-led auditing.

7. Advancing Sales and Marketing

By analyzing consumer behavior and market trends, Gen AI enables GCCs to craft targeted marketing campaigns and sales strategies. 

Gen AI empowers teams to:

  • Analyze competitor campaigns.

  • Create hyper-personalized content.

  • Launch AI-driven A/B testing strategies.

Marketing ROI Lift

Channel Traditional ROI Gen AI-enhanced ROI
Email 3x 7x
Social Media 5x 10x

 

The integration of Gen AI into these areas not only enhances operational efficiency but also positions GCCs as pivotal players in the global digital economy. As the technology evolves, GCCs that proactively adopt and scale Gen AI capabilities will be better equipped to navigate the complexities of the modern business landscape and drive sustained success.​

Scaling Gen AI in GCCs: Challenges & Strategic Shifts

Key Hurdles:

  • Fragmented data lakes.

  • Talent shortages.

  • Cultural resistance.

Strategic Enablers:

  • Domain re-wiring: Align tech with business vision.

  • Centralized AI COEs: Establish Centers of Excellence to pilot and scale.

  • Data productization: Turn raw data into usable AI assets.

Final Thoughts

GCCs that invest in scalable Gen AI ecosystems—not just pilots—will evolve from support hubs to strategic powerhouses. The future is not about who has AI, but who scales it smartly.

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