Capita shifts to agentic AI to save cash
Outsourcing giant Capita has announced a shift to agentic AI in a bid to return to profitability and ‘future-proof’ the business.
It expects to offset a dip in adjusted profit with cost savings from an AI programme powered by ‘agents’ – artificial intelligence systems capable of autonomous decision-making.
The company has launched an “AI lab”, which focuses on identifying, testing and scaling AI solutions.
Capita says it has found over 200 use cases for AI in the business, with five products now launched and an additional five products in the detailed testing stage.
Earlier this year, it launched agentic AI for its recruitment process, which cut the employee recruitment process “from weeks to hours”, it said.
CEO Adolfo Hernandez said that client interest in agentic AI solutions has “grown exponentially”.
“We are reinvesting a portion of our efficiency savings into new technology solutions, particularly those underpinned by AI and we are focused on bringing these technology solutions to more clients”, Hernandez said.
He added that the move to agentic AI was part of a “vision of partnering with technology hyperscalers to improve the agility of the business”.
Capita posts £185m in savings
The company told markets this morning that its adjusted revenue was 4.5 per cent lower in the five months ended May 31.
But Capita expects its AI rollout to deliver £250m in annual savings by December, meaning its revenue will be “broadly flat” year on year.
It expects a free cash outflow of £45m – £65m for the full year, which includes £55m cash cost to deliver the AI-driven cost programme.
Capita said it “remained confident” of delivering the group’s medium term adjusted operating margin target of six to eight per cent.