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Putting people first to create a seamless employee experience

Jon Harriman
7 Oct 2024

ServiceNow helps eliminate friction in human resources by seamlessly integrating people and processes 

Companies are fundamentally composed of people. While this may seem obvious, the complexity of recruitment, onboarding, training, and retaining employees reveals just how intricate managing this essential resource can be.  

As technology continuously evolves, transforming the nature of work and the workplace, it is crucial that the workflows supporting the employee journey evolve as well. However, outdated technology, inefficient processes, and siloed teams often hinder companies from delivering a seamless employee experience. This is where ServiceNow comes in. By providing an integrated platform and employee portals, ServiceNow enables companies to revolutionize their investment in human capital. 

Envision a transformative employee culture

Human resources encompasses a broad spectrum where people and processes intersect at various touchpoints. However, amidst the analysis of terabytes of data and assessment of key performance indicators (KPIs) is “human.” To foster a positive and transformative company culture, the employee experience must be human-centric, composed of individual moments that matter, and seamlessly connected. 

For instance, companies often rely on various distinct systems from third parties, such as Microsoft, Oracle, SAP, and others, to manage key steps in the employee journey. These systems handle aspects like day-to-day objectives and KPIs, compensation and benefits, learning opportunities, and overall career roadmaps. However, navigating through these multiple systems can be time-consuming and inefficient, leading to frustration, especially among new hires, and wasting valuable company resources. 

ServiceNow is an integrated platform that provides human-centric advantages, effectively breaking down siloes and creating cohesive workflows in the back end, where third-party applications and data are housed. Simultaneously, ServiceNow’s employee experience portal offers user-friendly access to key information that can be personalized for an individual, based upon their role, responsibilities, interests, and even geographic region. 

Identify points of friction

The actual employee experience often differs significantly from what many company leaders in IT and HR might expect. According to Capgemini’s 2022 research of 2,250 employees across 750 organizations, less than one-third (30 percent) of employees are happy at work, yet 92 percent of managers mistakenly believe they are content. Even more worrying is that 68 per cent of employees did not know what they are expected to do in their role.  

For instance, employees reported they did not have access to data to make informed decisions. They lack clear, quantifiable objectives and do not understand how those objectives are aligned to the company’s overall targets.

Not surprisingly, these types of barriers can skew an employee’s perceived performance, leading to dissatisfaction and increased attrition. Our survey found that a staggering 20 percent of employees left the company within 45 days of being hired.  

Automate and optimize the employee experience

Enabling the right technology can help solve these issues, ensuring employees have the best experience throughout their career at the company, starting from the recruiting stages and continuing immediately after hiring. 

Consider the actual onboarding process, for example. It requires collaboration across departments and involves numerous stakeholders, including managers, facilities, security, and finance. Less than half of these activities or touchpoints are related to HR, which can lead to a fragmented employee journey. ServiceNow’s platform brings it all together to clearly integrate these crucial steps. This helps companies provide a smooth end-to-end experience for new employees, right from when they first join an organization.  

Capgemini also has a pre-packaged ServiceNow HRSD product that optimizes and automates manual processes and workflows. It provides managers (and new hires) with a detailed list of every onboarding activity required, from sending a welcome email and assigning a desk to ensuring the appropriate forms are filled out and training tasks are set up. This way new hires can get up to speed and become productive more quickly.  

ServiceNow’s capabilities continue across the employee journey, extending from “hire to retire,” culminating in a unified, consistent people experience. Capitalizing on such advancements in technology can streamline workflows, automate processes, and enable data-driven decision-making for companies. This helps managers make the most of “human” resources, while promoting a productive and positive workplace where people truly come first. 

 

Author

Jon Harriman

Group Offer Lead – People Experience
Jon is a renowned expert in employee experience, leveraging his role as the People Experience Group Offer Leader at Capgemini to drive organizational success through people-centric approaches. With an extensive and diverse background encompassing roles in portfolio and offer development, pre-sales, solutioning, and delivery, coupled with a fervor for transforming how companies cultivate their workforce, Jon is committed to empowering organizations to establish engaging environments for their employees.

    Five ways generative AI can help retailers improve the automotive customer experience

    Mat Desmond
    Oct 4, 2024

    Generative AI can help retailers improve customer and vehicle knowledge to boost sales and service

    Customers in today’s digitally enabled world expect seamless, convenient, and personalized retail experiences. It’s no different when it comes to buying a vehicle. To compete, automotive dealerships must provide customers with the right offer, vehicle, and service at the right time. Throughout this end-to-end journey, retailers need to access data from various systems that provide information on vehicle sales, finance, and customer service. This is especially important as data can change at any time in the fast-paced environment of automotive retail. This creates complexity and can impact the customer experience.

    The dizzying pace of change in sales, including pricing updates, marketing campaigns, and sales incentives, is one reason many automotive original equipment manufacturers in North America are beginning to use generative AI (Gen AI). Gen AI is a game-changing technology characterized by its ability to learn, adapt, and collaborate in ways once reserved for human intelligence.

    Gen AI can help automotive original equipment manufacturer (OEM) sales and marketing teams and retailers improve the customer experience by providing information faster and more accurately. The power of Gen AI can help to assemble responses to important questions about the sales process and enable staff to spend more time with customers, building relationships and understanding their needs.

    Applying Gen AI can also help with parts, service, and, of course, customer interactions. With the right application of the technology, automotive sales, marketing, and retail teams win, and customers will receive the right answers to questions more quickly than with humans alone.

    The fast pace of automotive retail presents challenges

    There is a massive amount of data to consult and understand in context to deliver on customer expectations. Managing this data to personalize recommendations, align vehicles in stock with customer preferences, and maximize sales and service opportunities is a challenge most often requiring years of experience with the product and the business. Gen AI can help address these challenges and improve the customer experience even for the most seasoned automotive retail team member.

    Here are five use cases which illustrate how Gen AI can improve core processes in automotive retail, including customer shopping, customer service, OEM manufacturing, marketing and vehicle delivery.

    1. Order

    Gen AI can provide important data points in the ordering process for OEMs and dealers. It can be trained on inventory and sales history data to provide market intelligence that would otherwise be very time-consuming to obtain and analyze. This information can improve vehicle order management decision-making for the OEM and the dealer to ensure the right vehicle is available at the right time for the customer.

    2. Sales

    Recommending the best vehicle for a customer requires OEMs and dealers to understand numerous data points, including customer purchase history and preferences, available inventory, inventory on order, sales incentives, recent OEM and insurance offerings, and telematics. Gen AI can help OEM teams and retailers track all this. For instance, a busy parent with a history of buying minivans might be interested in a new model with a bigger trunk and new safety features, based on preferences, available inventory, and the best deals available. The offer can be enhanced with a tailored sales incentive or easy add-ons like insurance to meet the customer’s expectations based on their profile.

    3. Finance

    Gen AI can accelerate and streamline the cumbersome process of gathering information from various applications for finance. Traditionally, salespeople juggle multiple logins and interfaces to obtain a customer’s credit score, current loan rates, and available deals. Gen AI can gather finance data from disparate sources in real time, saving time for salespeople and placing the most up-to-date information in their hands to share with customers quickly.

    Furthermore, Gen AI has the analytical advantage of answering complex customer questions quickly. For instance, if a customer wants to know how much a trade-in will reduce monthly payments, Gen AI can instantly access the trade-in value, calculate the adjusted loan amount, and present a revised payment schedule within parameters set by the dealer. Similarly, Gen AI can offer personalized recommendations for finance options that align with customer input (e.g., a target monthly payment and term).

    4. Insurance

    Gen AI can recommend the right insurance for each customer by analyzing data on driving habits, demographics, and local insurance trends. Outside of basic coverage options, Gen AI takes personalization to a new level by considering factors like vehicle usage (highway vs. city driving), climate, and even typical road conditions to identify potential risks and tailor coverage accordingly.

    Gen AI can also highlight benefits relevant to the customer’s needs. A weekend traveler who works from home may want a policy with lower daily coverage limits but better features like roadside assistance or rental car coverage. Improved personalization and speed of providing options can increase customer satisfaction and boost sales of more relevant insurance products.

    5. Service

    Finally, Gen AI has the power to revolutionize customer service inquiries and internal dealer aftersales service processes. If a customer has car trouble, Gen AI can suggest potential diagnostics and service options based on data about the vehicle’s history and past repairs and available remedies, including software patch updates. Additionally, Gen AI can flag any open recalls or missing vehicle software, saving the customer time when deciding the next steps for service.

    When a vehicle is ready for repair, Gen AI can improve service efficiency by optimizing scheduling. Equipped with data on technician availability and parts inventory, Gen AI can share expected service completion times help service departments set expectations and automatically notify customers if there are changes impacting completion.

    With Gen AI, aftersales service will continue to move faster as vehicles become increasingly software-based. In the future, Gen AI technology will be trained to identify the parts needed, place the order, notify the customer, and create an appointment proactively with the customer’s consent. This can improve customer satisfaction, streamline operations, and help keep the wrenches turning in the service bays.

    Revving up your Gen AI engine

    OEMs have a unique opportunity to decide how they can use Gen AI capabilities to improve core processes as the technology is applied to all aspects of automotive retail. Exciting tools are reaching the market every day and expanding the pool of use cases. Now is not the time to hit the brakes on AI adoption; it’s time to accelerate progress toward using this technology to elevate customer experiences in a new era for automotive.

    Author

    Mat Desmond

    Client Partner & Auto Industry Domain Specialist
    I help Automotive and Heavy Equipment Manufacturing clients enhance sales, marketing and aftersales processes in their dealer networks through innovative digital tools & approaches to improve customer experience & retention and dealer digital integration.

      The Linux Foundation Margo Initiative
      Shaping the Future of Interoperability in Industrial Automation

      Capgemini
      7 Oct 2024
      capgemini-engineering

      The Margo initiative is a new open standard initiative for interoperability at the edge of industrial automation ecosystems. Drawing its name from the Latin word for edge, ‘Margo’ defines the mechanisms for interoperability between edge applications, edge devices, and edge orchestration software. The open standard promises to bring much needed flexibility, simplicity, and scalability – unlocking barriers to innovation in complex, multi-vendor environments and accelerating digital transformation for organizations of all sizes. 

      Co-founded by ABB/B&R, Capgemini, Microsoft, Rockwell Automation, Schneider Electric, and Siemens, under the Linux Foundation umbrella projects, the initiative invites like-minded industry peers to join the collaboration and contribute to building a meaningful and effective interoperability standard that will help plant owners achieve their digital transformation goals with greater speed and efficiency.  

      “In the constantly evolving realm of technology, edge interoperability stands out as a pivotal focus area for industrial automation, as a key driver for the seamless integration of industrial devices, applications, and their orchestration. The Margo initiative, with the aim of establishing an open standard that simplifies and standardizes industrial automation, represents a step change in the way complex industrial ecosystems are considered and will enable significant breakthroughs in innovation, optimization, and new value creation, and will help clients accelerate towards a more intelligent industry. As a pioneer in the field of edge compute-based industrial automation and founding member of the Margo initiative, Capgemini will bring its strong expertise in digital engineering to help the creation of this new open standard and accelerate the transformation of the industrial automation ecosystem.”

      Nicolas Rousseau, Head of digital engineering and manufacturing, Group Offer Leader Intelligent Products & Services, Capgemini.

      Margo focuses on the emerging needs in the industrial automation software space. In other words, the applications hosted on devices at the industrial edge is the primary focus. At the same time, the relationship between Edge & Cloud is recognized and considered, especially in the context of digitalization of operations in larger organizations and necessity to optimize & manage fleets of applications and devices. The Margo initiative is committed to delivering the interoperability promise in an open, secure, modern, and agile way with a practical reference implementation, a comprehensive compliance testing toolkit and an open interoperability standard defining the interaction patterns. 

      Unveiling Margo: origins and perspectives

      Explore the origins of the Margo initiative with insights from Nicolas Rousseau, Capgemini and learn what Margo represents for leading technology services providers with Roland Weiss, ABB, Silvio Rasek, Siemens, Shamik Mishra, Capgemini, Fabian Franck, Microsoft, Christian Platzer, Schneider Electric, Bart Nieuwborg, Rockwell Automation, Armand Craig, Rockwell Automation and Urs Gleim, Siemens. 

      Crafting the Future with Margo

      Let’s lift the lid on Margo with Bart Nieuwborg, the chairperson of Margo, and Shamik Mishra, CTO Connectivity at Capgemini, as they explore Margo’s interoperability promise through an open standard, a reference implementation, a comprehensive compliance testing toolkit, and the vision for Margo. 

      Join their conversation

      Guests

      • Bart Nieuwborg, chairperson of Margo 
      • Shamik Mishra, CTO Connectivity Capgemini 

      Host: Brian Doherty 
      Production : Brockhill Creative Ltd

      Expert perspectives

      Web banner for blog titled as: Is the future of manufacturing here?

      Is the future of manufacturing here?

      Nicolas Rousseau
      Apr 22, 2024

      The future of industrial automation

      Pragya Vaishwanar
      Jun 13, 2024

      Meet our experts

      Nicolas Rousseau

      Executive Vice President, Chief Digital Engineering & Manufacturing Officer, Capgemini Engineering
      Nicolas Rousseau, EVP and Chief Digital Engineering & Manufacturing Officer at Capgemini Engineering, drives business for “intelligent industries” by integrating product, software, data, and services. He leads a team that enables clients to innovate business models, optimize operations, and prepare for digital disruptions, enhancing customer interaction, R&D, engineering, manufacturing, and supply chains at the intersection of physical and digital worlds.

      Shamik Mishra

      CTO of Connectivity, Capgemini Engineering
      Shamik Mishra is the Global CTO for connectivity, Capgemini Engineering. An experienced Technology and Innovation executive driving growth through technology innovation, strategy, roadmap, architecture, research, R&D in telecommunication & software domains. He has a rich experience in wireless, platform software and cloud computing domains, leading offer development & new product introduction for 5G, Edge Computing, Virtualisation, Intelligent network operations.

      Himanshu Singh

      Sr. Director – Technology, CTO Connectivity office, Capgemini Engineering
      A seasoned Software Architect with over 20 years in the Telecommunications and Computer Software industry, he specializes in Mobile Edge Computing for 4G/5G networks, Containerization/Virtualization, and Orchestration technologies. His interests extend to acceleration capabilities in Network, Compute, Machine Learning, and Computer Vision. His extensive background includes NFV/MANO Solutions, LTE CPE Management, Telecom Network Element Protocol Stacks, and Operability Software for Carrier Grade systems. He has a proven track record of collaborating with diverse, international teams to drive successful product development.

      Deepak Gunjal

      Senior Director – Advanced Connectivity
      Deepak currently serves as Senior Director, CTO Connectivity office, at Capgemini Engineering. He represents Capgemini engineering in various standardization bodies, mainly GSMA Operator Platform Group (OPG), Operator Platform API Group (OPAG) and Linux Foundation CAMARA Project. He also contributes to the architectural evolution of Capgemini cloud native platforms for supporting edge computing, network API exposure etc. in mobile networks. He has over twenty-three years of experience in the telecom and software industry

      Pragya Vaishwanar

      Director GTM, Market and Sales Enablement for Digital Engineering, Capgemini Engineering
      Pragya is focused on helping our customers transform and adopt to the new digital age, and integrate digital engineering innovations into their business. She is focused on driving the expansion and delivery of digital transformation and helping companies to get a grasp on future technologies. She focuses on market and sales enablement and supports the go-to-market strategy for digital engineering.

        Unlocking the value of EcoDigital transformation

        Gustavo Rossi Dias 
        Oct 3, 2024

         To meet their digital and sustainability goals, OEMs need strategic partner integration with access to data

        The automotive industry faces a world of opportunity in the form of EcoDigital transformation – the simultaneous advancement of digital and sustainable practices.

        Also known as twin transformation, this dual approach is crucial for manufacturers looking to remain competitive in a rapidly evolving market that demands a faster, cheaper, resilient, software-driven and sustainable industry.

        The supply chain is a decisive factor in achieving these goals. Effective partner ecosystem integration allows for real-time sharing of critical data and insights, enabling manufacturers, suppliers, and service providers to work together more efficiently. This collaborative approach not only accelerates the development of innovative solutions but also enhances overall operational performance while reducing the carbon footprint and complying with ESG regulations. In this article, we will explore why supply chain partner integration is paramount for driving the EcoDigital transformation with a data-powered, collaborative approach.

        The importance of data collaboration in the automotive value chain

        Data collaboration ensures that information is consistently available and accessible throughout the automotive value chain – from suppliers to manufacturers to end users to third parties (and back). Timely access to accurate data in a common single source of truth enables companies to make informed decisions quickly, reduce delays, react to critical incidents and improve overall operational efficiency.

        In stock, on time and ethical

        For example, real-time data on component availability can prevent production bottlenecks, allowing manufacturers to maintain steady output and meet customer demand without excess inventory. A seamless flow of data allows for real-time monitoring of production processes, inventory levels, and supply chain dynamics. Going further, clear commodity tracking can also help to quickly narrow down ESG risks and thus initiate effective joint countermeasures. For example, suppose a mining operation is using unethical employment practices. In that case, partner companies can use their shared data to uncover those practices, and then either pressure the mining operation to improve, or switch suppliers. Also, if data is used to derive product or process improvements, taking the value stream perspective prevents local optimization, leading to problem shifting towards up- or downstream elements.

        Unfortunately, traditional data silos often hinder the effective use of this information. First and foremost, the silos within the company’s own boundaries must be overcome. Open data ecosystems break down these silos, facilitating seamless collaboration and communication among all stakeholders.

        Cost reduction

        Data continuity contributes significantly to cost reduction across the automotive value chain. By optimizing processes based on real-time data insights, companies can minimize waste, reduce operational inefficiencies, and lower production costs. Moreover, continuous data flow enables better demand forecasting, allowing manufacturers to adjust production schedules accordingly and avoid overproduction or stock-outs. It also significantly reduces the effort required for procurement and compliance with regard to the elimination of ESG risks and creates comparability of carbon footprints. This agility in operations translates into lower costs and improved profitability.

        Data-driven insight

        With continuous access to data, automotive companies can leverage advanced analytics and machine learning algorithms to derive insights that enhance predictive capabilities. This also opens up completely new opportunities for OEMs and suppliers to gain insights into the performance of their components in the field and to develop new business models. For example, manufacturers can analyze historical performance data to anticipate maintenance needs before failures occur. That way, predictive maintenance reduces downtime and repair costs while improving reliability. As an added bonus, predictive maintenance helps avoid vehicle recalls and repairs, reduces emissions and increases customer satisfaction.

        Process mining

        Another promising technique for optimizing cost, time, and carbon footprint with the use of data is process mining. This data-driven approach involves extracting knowledge from event logs to identify bottlenecks, inefficiencies, and opportunities for improvement. By analyzing the actual execution of processes based on real-time data, manufacturers can pinpoint areas where costs can be reduced, lead times shortened, and sustainability enhanced. For example, process mining can help identify the most efficient routes for transporting materials between suppliers and production facilities, minimizing fuel consumption and emissions while optimizing delivery times.

        Understanding the EcoDigital transformation

        In the section above, we saw the power of data. Now let’s look at what happens when data and sustainability are combined. The integration of digital technologies (such as AI, IoT, and digital twins) with sustainable practices (like decarbonization, ESG risk management, and circular economy) creates a synergistic effect that enhances the overall value stream in several ways.

        • By using digital tools to monitor and optimize manufacturing processes, companies can reduce energy consumption and material waste.
        • Digital twins allow for extensive testing and simulation before physical production begins. This capability not only accelerates the design process and reduces waste but also enables manufacturers to create more efficient and environmentally friendly products.
        • The circular economy approach encourages automotive companies to integrate more secondary or biobased material in their products and to maximize the use of their assets, resulting in improved profitability. By implementing second-life strategies like remanufacturing and repurposing, for example, companies can significantly multiply revenues per vehicle.
        • The focus on lifetime value and asset utilization also lowers total costs, making it easier for companies to offer competitive pricing while maintaining healthy margins. A lifetime view also helps manufacturers to think about more customer-friendly usage scenarios throughout the vehicle lifecycle.
        • Continuous data flow from connected vehicles provides insights into customer usage patterns as well as into the current vehicle whereabouts and owner, which enables data-informed strategies for recycling and reusing materials. This data also makes software calibrations possible, to address individual driving behaviors. These – naturally consensual – insights into customer behavior enable many new business models that OEMs have not been able to consider to date.
        • As regulations around emissions and sustainability become stricter, companies that embrace both digital and sustainable transformations are better positioned to comply with these requirements and to profit early from additional business potential such as data product monetization.
        • Digital tools can streamline reporting processes and ensure that manufacturers meet environmental, social & governance standards throughout their operations.

        Regulatory requirements

        As regulatory frameworks rapidly evolve to support ESG responsibility initiatives –­ such as the EU Data Act – automotive companies must ensure compliance with multiple data-sharing mandates. Data continuity facilitates adherence to these regulations by ensuring that all relevant data is captured accurately and shared with appropriate stakeholders in a timely manner. This not only mitigates legal risks but also builds trust with consumers who are increasingly concerned about how their data is used. Key regulations include:

        • Corporate Sustainability Reporting Directive (CSRD): Effective from FY 2025, this EU legislation mandates that large companies publish regular reports on their environmental and social impacts, where, among other requirements, reports must be fully machine-readable. It encourages transparency and accountability, helping stakeholders evaluate non-financial performance.
        • Corporate Sustainability Due Diligence Directive (CSDDD): This directive requires companies to enforce higher human rights and environmental standards throughout their value chains. It emphasizes the need for responsible sourcing and production practices, which is simply not feasible with existing human resources without the targeted use of digital tools and component traceability.
        • Carbon Border Adjustment Mechanism (CBAM): CBAM aims to equalize carbon costs between EU products and imports, impacting industries like automotive that are raw-material intensive. It necessitates that companies account for emissions associated with imported goods e.g., steel, aluminium and cement, thus promoting greener production methods.
        • Ecodesign for Sustainable Products Regulation (ESPR): This initiative sets sustainability requirements for products, including digital product passports, increased secondary material use, and a reduced carbon footprint, as we have reported here. Batteries, as those used in electric vehicles, are the first product group to require digital passports, enabling lifecycle tracking and transparency in sourcing and recycling. Expansion to full-vehicle passports is expected soon.

        These regulations collectively create a framework that drives automotive companies toward more sustainable practices while fostering an environment conducive to open data sharing.

        Catena-X – the first operational data collaboration framework for automotive

        One prominent initiative in this realm is Catena-X, an open and collaborative data ecosystem designed specifically for the automotive industry. It aims to standardize data flows between multiple stakeholders, enabling seamless information exchange. By integrating all players – from manufacturers to recyclers – Catena-X addresses critical challenges such as supply chain resilience and compliance with sustainability regulations. With a comprehensive set of benefits for its participants, Catena-X provides a strong foundation for companies to accelerate their sustainability efforts and remain competitive in an evolving regulatory landscape. And the strong standards also help incentivize the important supplier landscape to actively participate in the data ecosystem.

        Some features of Catena-X include:

        • Enhanced Traceability: Catena-X enables improved tracking of components from raw materials to recycling, ensuring compliance with environmental and social standards, and optimizing recycling processes. This traceability is achieved through unique business partner numbers, part IDs and scalable standards like APIs and semantics.
        • Real-Time Data Access: Participants can access real-time information about supply chain dynamics, enabling quicker responses to disruptions and better resource management. The decentralized peer-to-peer data exchange model ensures that data stays within each company and is only shared with direct partners ensuring full control by the data owner.
        • Sustainability Metrics: Catena-X facilitates accurate lifecycle assessments to quantify the environmental effect across the value chain, replacing secondary data (average values, e.g. for the electricity mix or steel production, mostly based on association data) with more and more primary values that reflect each company’s real impact. This data can be used to optimize processes and report on sustainability metrics like Product Carbon Footprint and a company’s share of secondary material.
        • Reduced Interfaces: Instead of managing hundreds of interfaces with customers and suppliers, Catena-X provides a single platform where companies can choose software based on their needs. All certified software works together seamlessly, reducing complexity and costs.
        • Regulatory Compliance: Catena-X offers a “speedboat solution” for complying with upcoming regulations like Product Carbon Footprint, Product & Battery Passes, ESG reporting, and the Corporate Sustainability Due Diligence Directive. Common rulebooks are defined to ensure all participants meet these requirements. This is achieved in cooperation with many other initiatives (e.g., TFI, GRI) to ensure the international reach of the standards.
        • Collaborative Innovation: By breaking down data silos and enabling radical collaboration, Catena-X allows companies to jointly develop innovative solutions to industry challenges. The open ecosystem approach and standardized data flows accelerate time-to-market for new sustainability initiatives, while also serving the business case for sustainability.

        Conclusion

        In one of the Capgemini Research Institute reports – Sustainability in Automotive: From ambition to action, we examine the various aspects of sustainability in automotive in depth. The EcoDigital Transformation of the automotive industry is essential for creating a more efficient, cost-effective, and sustainable value stream. By integrating these two dimensions and fostering partner integration through open data ecosystems, automotive OEMs can not only enhance their operational capabilities but are also perceived as pioneers in terms of sustainability. While challenges remain, the potential benefits in terms of cost savings, operational efficiency, and environmental & social impact are clear.

        As stakeholders across the value chain come together to embrace this dual-sided (r)evolution, they will not only contribute to a greener industry but also position themselves for long-term success in an increasingly competitive and conscious market environment. Those who first embrace change will most likely become the ones leading the way into the future of the industry. The time to act is now, as the path to the EcoDigital Era requires collective action and a shared commitment to the planet and people.

        Gustavo Rossi Dias 

        Global Automotive Sustainability Lead, Capgemini Invent
        Gustavo Rossi Dias is a renowned expert with 12+ years of international experience at Automotive OEM’s, leading multiple global, multidisciplinary teams and traversing strategy, technology, production, and sales. Throughout his professional and academic journey, Gustavo have been actively involved in promoting eco-digital practices in the Automotive industry, rolling-out ESG strategies, as well as operationalizing data-driven circular car initiatives.

        Philipp Lesch

        Manager Sustainable Mobility & Supply Chain Transformation, Capgemini Invent
        Philipp Lesch is a purpose-driven manager with 9+ years of experience in Corporate Strategy and Product Management for EVs across the automotive value chain. He has worked with multiple brands, regions, and functions within a major automotive group. Philipp specializes in sustainability strategy, focusing on transforming the automotive supply chain through data ecosystems like Catena-X and its use cases.

          Expert perspectives

          AI Act in focus: How legal and strategic consulting jointly set new standards

          Lars Bennek
          Oct 03, 2024
          capgemini-invent

          CMS and Capgemini Invent: Joint consulting on digital regulation and transformation

          By combining the expertise of international law firm, CMS, and leading strategy and technology consultancy, Capgemini Invent, we provide comprehensive and seamless advice on all aspects of digital transformation. Together, we present the foundational elements of AI governance, AI governance frameworks and platforms, and the importance of AI regulatory compliance.

          We would like to thank the authors Björn Herbers, Philipp Heinzke, David Rappenglück and Sara Kapur (all CMS) and Philipp Wagner, Oliver Stuke, Lars Bennek and Catharina Schröder (all Capgemini Invent).

          The “Regulation on Harmonized Rules for Artificial Intelligence” (AI Act), adopted by the European Parliament and the Council of the European Union, came into force on August 1st 2024. This concludes a long path of tough negotiations that began in 2021 with the European Commission’s proposal for EU-wide regulation of AI. Due to its direct applicability in all 27 member states, the AI Act will have far-reaching impacts on providers, operators, and users of AI.

          AI Act in focus - Ai governance blog infographic Final
          • Prohibited practices under the AI Act (Art. 5) are those AI systems deemed incompatible with the fundamental rights of the EU.
          • High-risk AI systems (Art. 6) are divided into those that are products or safety components of certain products and subject to third-party conformity assessment and such used in specific areas. Providers of such AI systems face high compliance requirements throughout the system’s lifecycle.
          • Certain AI systems, such as those interacting with humans (e.g., chatbots), are subject to specific transparency obligations (Art. 50).
          • General Purpose AI (GPAI) models (Art. 51 ff.) are versatile AI models that can perform various tasks and be integrated into systems. Compliance obligations vary based on classification as “normal” GPAI models or those with systemic risk.

          From the date the AI Act came into effect, provisions on prohibited practices will apply for six months, 12 months for GPAI models, and between 24 and 36 months for high-risk AI systems.

          Violations of the provisions can result in fines up to EUR 35 million or up to 7% of the previous year’s worldwide total revenue. In other cases, the penalty may amount to EUR 7.5 million or up to 1% of the previous year’s worldwide total revenue.

          Strategic and operational implementation through AI governance

          Implementing the requirements of the AI Act requires an overarching approach. With our comprehensive AI Governance Framework, we help organizations use AI responsibly and efficiently while minimizing risks. Processes and responsibilities must be defined and adhered to throughout the AI lifecycle, covering data, models, systems, and use cases, aligning with technical, procedural, and regulatory requirements.

          Ai act in focus - Ai governance blog infographic 2

          Formulating a long-term vision for AI governance and developing ethical guidelines within the organization lays the foundation for any AI strategy. This strategy must then be effectively conveyed through a comprehensive communication plan. Subsequently, roles and responsibilities related to AI projects can be identified and defined, and processes for the development, implementation, and monitoring of AI projects can be adjusted.

          Creating a handbook with security standards, best practices, and guidelines for implementing AI is recommended. Given the AI Act impacts such areas as data protection, copyright, and IT security law, it is advisable to continuously analyze regulatory requirements and translate them into technically measurable KPIs.

          For providers of high-risk AI, setting up a risk management system is mandatory (specific components to be explored in a subsequent blog post). Here, an AI governance framework is essential. To effectively scale AI deployment and optimize operational processes, it is crucial to take an inventory of all AI systems and subsequently automate processes across development, deployment, monitoring, and documentation stages.

          Establishing and monitoring metrics for quality, fairness, and robustness is a cornerstone of effective strategy. To foster knowledge among employees and mitigate biases against AI, continuous training and awareness initiatives should be integrated throughout the AI lifecycle in an iterative process, complemented by change management to ensure a seamless transition.

          Application example

          To illustrate this approach, consider a fictional federal ministry intending to use AI for partial automation of administrative services.

          Legal assessment

          The first challenge in an implementation project is the legal assessment of whether and to what extent the AI Act applies to the intended AI integration. Only after clarifying fundamental legal questions can specific compliance obligations be determined, and the AI Act’s provisions be technically implemented.

          Initially, it is necessary to assess whether the AI system falls into a risk category under the AI Act and what role the ministry plays concerning the AI system. Depending on the specific use, an AI system for partial automation of administrative services could be classified as a high-risk AI system under the AI Act. Annex III of the AI Act regulates specific “high-risk areas.” In the context of public administration, the following example areas for usage of AI systems can be mentioned:

          • As a safety component in administration
          • For assessing claims for public services and benefits
          • For law enforcement by judicial authorities.

          While providers primarily bear the compliance obligations of high-risk AI systems, operators also possess certain responsibilities under the AI Act. Therefore, the following questions must be asked:

          • Is the ministry planning to develop and deploy an AI system? If so, the ministry acts as a provider.
          • Is the ministry using an existing AI system under its own responsibility? If so, the ministry acts as an operator.
          • Is the ministry planning to adapt an existing AI system significantly to meet its specific needs? If so, the ministry would transition from being solely an operator to also acting as a provider.

          After addressing the core questions, the next step involves specific planning to implement compliance obligations and establish governance structures. In this scenario, legal engineers, leveraging their interdisciplinary approach, translate legal requirements into concrete specifications and solution designs. They achieve this by identifying and developing technical and organizational measures that align with these obligations.

          This approach encompasses a wide range of actions. For instance, data governance requirements outlined in Art. 10 of the AI Act can be seamlessly integrated into the architectural design. Techniques, such as anonymization or applying privacy by design principles, can be employed to handle training data. Additionally, differential privacy methods serve to enhance data confidentiality. Furthermore, meticulous selection and evaluation of training data can significantly mitigate potential biases.

          To allow humans to carry out their oversight responsibilities, a sufficient level of explainability of the AI governance models is crucial, as outlined in Article 14 of the AI Act. Explainability methods become particularly crucial, especially in contexts where AI is involved in decision-making processes. Additional explanations or visual outputs can act as useful tools to clarify AI outputs, thereby facilitating a clearer understanding and oversight by humans.

          Given the variety of requirements, the selection of the AI governance model is a pivotal consideration. Various training models differ in their transparency regarding training data, making careful selection particularly dependent on specific use cases. An agile and interdisciplinary approach, which considers both legal and technological aspects, is essential to make an informed decision and achieve the desired project success.

          In our application example, the complexity and multifaceted nature of the topics are evident. Only by first clarifying the legal questions surrounding AI actors and the type of AI system can the resulting obligations be identified and effectively integrated into AI governance.

          Strategic approaches to AI governance and risk management

          The use of AI offers enormous potential for value creation but also carries functional and legal risks. Ongoing legislation, such as the AI Act, leads to a comprehensive regulatory framework but requires detailed implementation in organizations, considering technical, procedural, and human dimensions. Various projects have shown that AI governance only adds value if it keeps pace with the constant evolution of AI technology. Clear regulatory frameworks can catalyze increased AI applications in boundary-pushing areas following initial uncertainty. This not only fosters technological solutions for known issues but also unveils new use cases made possible by emerging capabilities. To remain competitive, implementation guidelines should strike a balance: offering necessary support while maintaining flexibility from the outset. Keep an eye out for our forthcoming deeper exploration of the risk management requirements outlined in Article 9 of the AI Act.

          Capgemini Invent Offer EU ai act compliance Banner

          EU AI Act compliance

          With the EU AI Act, the European Union has introduced a landmark regulation that reshapes the governance of Artificial Intelligence.

          Author

          Lars Bennek

          Senior Manager, AI Governance & Data Law, Capgemini Invent
          Lars is a Senior Manager and Head of the Legal Engineering Team. He focuses on Lawful AI and AI Governance, translating regulatory requirements into technical designs, functional architectures, and processes. His academic background as an engineer, business lawyer, and business informatics specialist enables him to take a holistic view of the aforementioned topics.

            Top five key takeaways from Climate Week 2024: Shaping a sustainable future through technology

            Greg Bentham
            4 Oct 2024

            Climate Week 2024 sent a powerful message: “It’s time.” Time to move beyond discussions and take meaningful action toward a more sustainable future. As global leaders, innovators, and industries gathered to confront the challenges posed by climate change, one thing became clear: Technology will play a pivotal role in driving this transformation. For the IT services industry, the responsibility to lead is undeniable. IT has the power to accelerate decarbonization, drive sustainable innovation, and reshape the way businesses approach their environmental impact.

            Here are the top five key takeaways from Climate Week 2024, outlining how the IT services sector can help turn the tide on climate change.

            1. It’s time for sustainable innovation: A business imperative in IT

            Climate Week 2024 underscored that sustainable innovation must become central to every business’s strategy. IT service providers are uniquely positioned to drive eco-friendly transformation through advancements in green software development, energy-efficient IT infrastructure, and cloud-based solutions. This shift isn’t just about reducing environmental footprints, it’s about future-proofing businesses by aligning their operations with the pressing need for sustainability. It’s time for IT leaders to make sustainability a core element of digital transformation strategies and realize reduced emissions as well as the reduced cost of operations.

            2. It’s time to decarbonize IT infrastructure: Cutting carbon, boosting efficiency

            As industries continue to contribute to global emissions, decarbonizing IT infrastructure has never been more critical. Data centers, once notorious for their energy consumption, are now being reimagined through the use of renewable energy sources and AI-driven optimization techniques. By investing in carbon-neutral infrastructure, the IT services sector can set a new standard for how technology can be both efficient and sustainable. It’s time to build the digital infrastructure of the future ­– one that prioritizes the planet as much as performance. Capgemini is at the forefront of this effort with a net-zero strategy, which includes transitioning our global data centers to 100% renewable energy by 2025.

            3. It’s time for eco-friendly device design: Extending lifecycles, reducing e-waste

            The event put a spotlight on the importance of tackling e-waste, with the message that it’s time to redesign devices with sustainability in mind. Capgemini is partnering with the major user device OEMs, who are aligned to eco-friendly design principles, that helps us create longer-lasting devices that are easier to repair, recycle, and repurpose. Moving away from the linear “use-and-dispose-of” model towards a circular economy, where devices are part of a continuous “use cycle,” reduces waste and environmental harm. It’s time for the IT industry to lead by example with greener, more sustainable products.

            4. It’s time for green cloud services: Powering the future with renewable energy

            The cloud, a cornerstone of digital transformation, is rapidly becoming a key driver of sustainable IT. By transitioning to cloud platforms powered by renewable energy, businesses can significantly reduce their carbon footprints while maintaining operational excellence. IT service providers must lead the charge in helping organizations make this shift, ensuring that their cloud strategies are not just optimized for performance but also for sustainability. It’s time for the IT industry to leverage the power of the cloud to build a greener digital landscape. For example, Capgemini helped a global retailer reduce carbon emissions by 40% by migrating to the cloud and optimizing IT infrastructure, saving $80 million in operational costs.

            5. It’s time to unite digital transformation and sustainability

            The most important takeaway from this year’s event is that digital transformation and sustainability can no longer be viewed as separate goals. Businesses are realizing that sustainability must be an intrinsic part of their digital journey. IT service providers can play a vital role in this integration by offering tools and strategies that help clients measure and reduce their environmental impact as they modernize their operations. It’s time for the services industry to recognize that the future of business lies at the intersection of technology and sustainability.

            Conclusion:

            The message from Climate Week 2024 is unmistakable: It’s time for the IT services industry to step up as a leader in sustainability. The future of technology is inextricably linked to the future of our planet, and the actions taken today will define the world of tomorrow. By embracing sustainable innovation, decarbonizing IT infrastructure, adopting eco-friendly design, and leveraging green cloud services, the IT sector has the potential to drive lasting, meaningful change.

            The time for talking has passed – it’s time to act.

            To learn more about our sustainable technology offerings, click here.

            Author

            Greg Bentham

            VP & Global Head of Sustainability, Cloud Infrastructure Services
            I am a highly motivated technology services and consulting leader with a passion for building high-performing teams and organizations. For the last 24 years, I have led large global teams on both the Sales and Delivery sides of the business. So, I know what success looks like and bring know-how to elevate Corporate Social Responsibility to being an integral part of the business.

              The rise of autonomous AI agents and the challenges

              Pascal Brier
              Oct 2, 2024

              It seems our predictions were spot-on, with AI agents being announced everywhere and becoming the new business conversation topic (some hype maybe?).

              Indeed, the concept of multi-agent systems, where multiple #AI agents interact and cooperate to achieve defined objectives is very promising. No longer limited to simple task execution, AI agents are now evolving towards greater autonomy, capable of making decisions, learning from their environments, and performing complex actions without continuous human intervention.

              But as we step into this future, I can’t help but ask myself: What will govern the interactions between AI agents when they become autonomous?

              To understand this question, we can draw a parallel with human social behavior. As individuals, our interactions are shaped by character, social norms, cultural values, learned behaviors, and a myriad of other rules that are implicitly followed by all (at least in theory!). These mechanisms allow us to collaborate, make decisions, and solve conflicts when we disagree.

              AI currently lacks this framework to navigate complex and unexpected situations. As an interesting example, my friend Brett Bonthron shared how his driverless taxi got frozen in place when faced with the chaos of a traffic accident in front of it: https://lnkd.in/eGTCuMgS
              An unexpected situation which would have been easily navigated by the average human utterly confounded the AI systems of his car (funnily enough, Brett eventually had to exit his driverless taxi and call for a good-old human driven one).

              In the future, what will happen when several AI Agents run into each other and that they have to get to a clear outcome but their assigned tasks happen to be in contradiction? Who will go first? Who will have to step back and give priority to the other?

              If you want to learn more about this, our colleague Jonathan Aston from our Capgemini Generative AI Lab recently posted a very interesting piece exploring how Game Theory may provide some of the answers:
              https://lnkd.in/e_efTnY9

              In the physical world, individuals essentially follow three main tracks to resolve such conflicts: we endorse the rules of courtesy, we negotiate, or we go to war (figuratively or not). Will AI agents follow a similar reasoning?

              Meet the author

              Pascal Brier

              Group Chief Innovation Officer, Member of the Group Executive Committee
              Pascal Brier was appointed Group Chief Innovation Officer and member of the Group Executive Committee on January 1st, 2021. Pascal oversees Technology, Innovation and Ventures for the Group in this position. Pascal holds a Masters degree from EDHEC and was voted “EDHEC of the Year” in 2017.

                How post-quantum cryptography is reshaping cybersecurity in 2024

                Pascal Brier
                Oct 2, 2024

                Last year, we predicted that post-quantum cryptography (PQC) would be a defining technology trend in 2024 with far-reaching implications for organizations.

                Following the release of NIST’s post-quantum encryption standards a few weeks ago, the race to secure IT systems for the quantum era has accelerated. Nowhere is this urgency more pronounced than in the financial sector, where sensitive data, stringent regulations, and vast datasets demand a rapid shift to quantum-safe systems

                As #quantum computing advances, it presents both opportunities and risks for the financial sector. On one hand, quantum computing could revolutionize financial processes such as market trading, risk management, and secure communication through technologies like quantum key distribution. On the other hand, it could create significant exposure, particularly to public-key cryptography, which underpins the security of digital communications. Cyber actors may use quantum computers to break current encryption methods, creating a scenario where sensitive financial data becomes vulnerable. The concept of “harvest now, decrypt later” is particularly concerning, as threat actors might intercept encrypted data today, with the aim of decrypting it once quantum computers mature.

                Recently, the G7 Cyber Expert Group published a very interesting statement that highlights the dual nature of this technology.

                The G7 is urging financial institutions to start planning for post-quantum cryptography (PQC) as soon as possible to safeguard future communications. Financial institutions are encouraged to assess their own quantum risks, build inventories of vulnerable systems, and implement governance processes to mitigate emerging threats.

                Personally, I would go beyond the G7’s recommendations and urge organizations across all sectors to start investigating and navigating the complex quantum landscape.

                There are many actions that CxOs can take today to start preparing for a quantum future: such as auditing current cryptographic systems, investing in quantum-resistant algorithms, and ensuring that quantum readiness is integrated into long-term IT roadmaps.

                Quantum computing is advancing faster than initially predicted, and when it reaches critical maturity, it will be too late to start preparing. Post-quantum cryptography implementation will not be easy, so a gradual migration with careful planning will be essential. Starting now will prevent unwelcome surprises and allow an orderly migration. The actions we take today will determine whether we are resilient or exposed when quantum supremacy becomes a reality.

                Meet the author

                Pascal Brier

                Group Chief Innovation Officer, Member of the Group Executive Committee
                Pascal Brier was appointed Group Chief Innovation Officer and member of the Group Executive Committee on January 1st, 2021. Pascal oversees Technology, Innovation and Ventures for the Group in this position. Pascal holds a Masters degree from EDHEC and was voted “EDHEC of the Year” in 2017.

                  Capgemini & Zendesk: Transforming Employee Experience

                  Patryk Sochacki
                  Oct 01, 2024

                  The modern HR landscape is rapidly evolving, and at the heart of this transformation is the pursuit of exceptional Employee Experience(EX).

                  EX is not only a key driver of employee satisfaction, retention, and productivity, it is also a strategic advantage that enables organizations to attract and retain the best talent in the market. As a result, HR leaders are increasingly seeking innovative AI-based solutions to make EX a reality in their own organizations.

                  According to the latest Zendesk EX Trends Report, “81% of employee service leaders believe AI enables employees to handle complex tasks effectively, while 79% think it enhances their competitive advantage.”

                  Couple this with the rise of Generative AI (GenAI) and its ability to transform how HR teams deliver personalized and engaging experiences to employees, and organizations are left with a need to foster better employee interactions to keep pace in the market.

                  Capgemini and Zendesk’s strategic partnership delivers all of this to HR teams by combining Capgemini’s strategy and transformation expertise with Zendesk’s cutting-edge technology. Ultimately delivering effective and empathetic HR solutions to clients, that ensure employees feel valued and supported, leading to increased satisfaction, retention, and productivity rates across any organization.

                  Transformation with innovation at the core

                  In an era where change is the only constant, Capgemini’s Intelligent People Operations (IPO) solution stands at the forefront of HR transformation, championing a future where innovation is not just a buzzword, but the driving force behind every strategic move.

                  The benefits of this transformation are manifold, as they impact not only the efficiency and effectiveness of the HR function, but also the overall performance and culture of the organization:

                  • Organizations that leverage Capgemini IPO solution can expect to see a significant reduction in operational costs, through the value and optimization it delivers to HR processes through its GenAI capabilities
                  • Additionally, a transformed HR function also means a more engaged workforce, with employees benefiting from more personalized and seamless interactions with HR, leading to higher employee satisfaction and retention rates which are critical in today’s competitive talent market
                  • While a transformed HR function enables organizations to become more agile and responsive to the changing needs and expectations of their employees, customers, and stakeholders. By leveraging data and analytics, organizations gain insights into their workforce and talent trends and can leverage them to make informed decisions and drive innovation.

                  Zendesk’s role in this partnership is pivotal. Its robust customer service platform is the perfect complement to Capgemini’s transformation strategy, providing the technological backbone needed to support a modern, digital-first HR function.

                  With Zendesk’s tools, organizations can deliver a more personalized and efficient service to their employees, fostering a culture of continuous improvement and innovation across any HR team.

                  A journey of transformation: Building lasting partnerships

                  Embarking on a transformation journey is a voyage that requires not just a clear vision and a strategic map, but also a committed partner who can navigate through the complexity of change at speed.

                  This is where the enduring partnership between Capgemini and Zendesk becomes invaluable. Together, we stand as reliable partners on any transformation journey, ensuring that every step moves organizations towards achieving their long-term goals.

                  Capgemini and Zendesk understand the challenges of this journey and are committed to helping our clients benefit from more agile, resilient, and equipped HR operations, enabling them to handle the demands of today’s ever-changing business landscape.

                  Together, we do not just help organization reach their transformation goals, we also help them thrive during the journey.

                  Meet our expert

                  Patryk Sochacki

                  Generative AI and Technology Platforms Leader, Intelligent People Operations, Capgemini’s Business Services
                  As a Generative AI & Technology Platforms leader with experience in HR operations, Patryk collaborates with customers to tackle critical HR challenges. With strong expertise in technology, automation, and generative AI, Patryk recommends leveraging cutting-edge technologies to modernize HR practices and emphasizes on enhancing the employee experience with an equal focus on process and end-users.

                    The efficient use of tokens for multi-agent systems

                    Jonathan Kirk, Data Scientist, I&D Insight Generation, Capgemini’s Insights & Data
                    Jonathan Aston
                    Oct 1, 2024

                    What are multi-agent systems?

                    Multi-agent systems with AI are those systems where autonomous agents are equipped with AI capabilities, working together to achieve the desired outcome. An agent in this context can be as generic as an entity which is acting on another entity’s behalf. In multi-agent AI systems, AI agents (bots) cooperate to help achieve the goals of people owning processes and tasks.

                    How do tokens work?

                    Put simply, a token is a piece of a word or text that can be used as input for a large language model (LLM) like ChatGPT. All passages of text are broken into tokens, but not every word is a token, some are broken down further. For example, the word “chat” is one token, but a longer word like “tokenization” might be broken into multiple tokens.

                    When you input text into ChatGPT, for example, the text is converted into a sequence of tokens in a process called tokenization. The model processes these tokens and generates a sequence of output tokens, which are then converted back into text.

                    Why does understanding tokenization matter?

                    The reason why it matters is because models have token limits, and models also have pricing determined by the number of tokens in the input and output.

                    Models like GPT-3.5-turbo have a maximum number of tokens they can process in a single request. For instance, GPT-3.5-turbo can handle up to 4096 tokens which is around 3,000 words (both input and output combined). These limits are put on the models to ensure they work effectively and can respond quickly.

                    The number of tokens processed affects the computational resources required and the cost of using the mode, so the more tokens, the more cost.

                    Token limits are one of the reasons why retrieval-augmented generation (RAG) involves the use of traditional search tools to help subset the relevant information into the prompt to enable vast quantities of information to be processed in efficient ways.

                    What are the costs?

                    The costs on paper may not seem high, but they can mount up especially in multi-agent systems. Let’s explore the costs a little.

                    Here are the costs of two common models offered by OpenAI. You can see that there are substantial differences in cost between the two models (prices correct August 2024).

                    ModelPricingPricing with Batch API
                    GPT-3.5-turbo-0125  $0.50 / 1M input tokens $1.50 / 1M output tokens$0.25 / 1M input tokens $0.75 / 1M output tokens
                    GPT-4o$5.00 / 1M input tokens $15.00 / 1M output tokens$2.50 / 1M input tokens $7.50 / 1M output tokens
                    https://openai.com/api/pricing

                    What do tokens look like in reality and how do they count up?

                    Here is a single-agent example with a total of 13 input tokens and 15 output tokens, which is not many:

                    Prompt: “I think we should replace the sensor immediately to avoid any issues.” (13 tokens)

                    Answer: “I agree, let’s replace the sensor right away to prevent any problems.” (15 tokens)

                    Here is a multi-agent example with a total of 1005 input tokens (approximately 77 times as many as the single-agent example because of the need to input the responses of all agents to all agents each round) and 153 output tokens (around 10 times as many as the single-agent example):

                    Round 1 prompt: “I think we should replace the sensor immediately to avoid any issues.” (13 tokens × 5 agents = 65 tokens)

                    Round 1 answers: Initial opinions

                    • Agent 1: “I think we should replace the sensor immediately to avoid any issues.” (13 tokens)
                    • Agent 2: “I suggest we first run a diagnostic test to determine the fault.” (13 tokens)
                    • Agent 3: “We might need to recalibrate the sensor instead of replacing it.” (11 tokens)
                    • Agent 4: “Let’s review the sensor’s error logs before deciding.” (10 tokens)
                    • Agent 5: “Perhaps the issue is with the wiring, not the sensor itself.” (11 tokens)

                    Round 2 prompt: Includes all the past answers from round 1 and the initial prompt (71 tokens × 5 agents = 355 tokens).

                    Round 2 answers: Arguments and counterarguments

                    • Agent 1: “Replacing the sensor ensures we eliminate the fault quickly.” (10 tokens)
                    • Agent 2: “Diagnostics can reveal if the sensor really needs replacement.” (10 tokens)
                    • Agent 3: “Recalibration is cost-effective and might fix the issue.” (9 tokens)
                    • Agent 4: “Error logs can provide insights into the root cause.” (8 tokens)
                    • Agent 5: “Checking wiring first can save time if it’s not the sensor.” (9 tokens)

                    Round 3 prompt: Includes all the past answers from rounds 1 and 2 and the initial prompt (117 tokens × 5 agents = 585 tokens).

                    Round 3 answers: Further discussion and attempt to reach consensus.

                    • Agent 1: “If diagnostics show a major fault, we can then replace it.” (12 tokens)
                    • Agent 2: “Agreed, diagnostics first, then decide the next steps.” (9 tokens)
                    • Agent 3: “Can we perform diagnostics and recalibration simultaneously?” (10 tokens)
                    • Agent 4: “Yes, and while doing so, review the error logs.” (9 tokens)
                    • Agent 5: “And inspect the wiring as a part of the diagnostics.” (9 tokens)

                    Conclusions and the challenges of scale

                    We can see that the multi-agent example uses 1005 input tokens and 153 output tokens, which is a huge increase on the 13 input tokens and 15 output tokens of the single agent. While the value of the multi-agent system may be worth the extra cost for the additional value in response, we can see that costs can increase quickly when they are determined by token volume, and therefore, the architectural design of multi-agent systems should consider this spiralling token use and cost. This becomes a much bigger issue when we have proactive agents seeking out work and having discussions with each other frequently.

                    If we have one sensor and we need to make a decision every one minute, what do these costs look like?  

                    • Single-agent (tokens per day and cost):
                      • Input tokens: 13 × 60 × 24 = 18,720 (GPT-4o non-API 18,720 * ($5 / 1,000,000) = $0.09)
                      • Output tokens: 15 × 60 × 24 = 21,600 (GPT-4o non-API 21,600 * ($15 / 1,000,000) = $0.32)
                    • Multi-agent (tokens per day and cost):
                      • Input tokens: 1005 × 60 × 24 = 1,447,200 (GPT-4o non-API 1,447,200 * ($5 / 1,000,000) = $7.24)
                      • Output tokens: 153 × 60 × 24 = 220,320 (GPT-4o non-API 220,320 * ($15 / 1,000,000) = $3.30)

                    So, we see the cost per day of these two systems being $0.41 for the single-agent and $10.54 for the multi-agent system which is approximately 26 times more expensive. The difference in cost becomes even greater when viewed by week or month and the number of sensors may well push volume and costs up even further. So, do we abandon multi-agent systems, or can we mitigate these spiralling token costs?

                    Top tips

                    • Use GPT3.5 turbo instead of GPT4. This is a good option for simple tasks, and we already see that costs can be much lower for simpler models.
                    • Use a model hosted by someone for free. This can be offered from services such as Groq.
                    • Use a local model such as LLaMA 7B. This involves downloading a model and running it locally so the compute costs are on your own infrastructure and, therefore, can be managed yourself and could be cheaper. However, simple/smaller LLMs are those available for download today, so a compromise on performance might have to be made for this option.
                    • Use token limits. A lot of LLMs have settings for limiting the output tokens of an LLM and this can have a significant downstream effect especially if you are giving the entire dialogue to the next agent in a multi-agent system.
                    • Be careful when you use applications like CrewAI, as they employ a quality and context self-checking and updating mechanism that updates the context and runs a query to check if the agent has answered the question properly. This can double all the token use in the system as well.

                    While multi-agent systems can have a lot of value, there is often a cost to the increase in value and performance. Our conclusion is that there is a great need for good architectural design in multi-agent systems for them to be cost-effective.

                    About Generative AI Lab:

                    We are the Generative AI Lab, expert partners that help you confidently visualize and pursue a better, sustainable, and trusted AI-enabled future. We do this by understanding, pre-empting, and harnessing emerging trends and technologies. Ultimately, making possible trustworthy and reliable AI that triggers your imagination, enhances your productivity, and increases your efficiency. We will support you with the business challenges you know about and the emerging ones you will need to know to succeed in the future. One of our three key focus areas is multi-agent systems, alongside small language models (SLM) and hybridAI. This blog is part of a series of blogs, Points of View (POVs) and demos around multi-agency to start a conversation about how multi-agency will impact us in the future. For more information on the AI Lab and more of the work we have done visit this page: AI Lab.

                    Meet the author

                    Jonathan Kirk, Data Scientist, I&D Insight Generation, Capgemini’s Insights & Data

                    Jonathan Aston

                    Data Scientist, AI Lab, Capgemini Invent
                    Jonathan Aston specialized in behavioral ecology before transitioning to a career in data science. He has been actively engaged in the fields of data science and artificial intelligence (AI) since the mid-2010s. Jonathan possesses extensive experience in both the public and private sectors, where he has successfully delivered solutions to address critical business challenges. His expertise encompasses a range of well-known and custom statistical, AI, and machine learning techniques.