Accenture announced on Thursday that it anticipates annual revenue growth for 2024 to surpass estimates, driven by the rising adoption of artificial intelligence. This forecast has boosted its shares by 3% in premarket trading. The company’s generative AI technologies are enhancing productivity and cutting costs for businesses, mitigating the effects of slower enterprise spending.

Accenture’s role as a key consultant and outsourcing service provider for cloud migrations has helped cushion the impact of inflation-related IT budget cuts. The company projects annual revenue growth of 1.5% to 2.5%, exceeding analysts’ expectations of 1.6%, as per LSEG data. This is a slight adjustment from its previous forecast of 1% to 3%.

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For the quarter ending May 31, Accenture reported revenues of $16.47 billion, slightly below the expected $16.53 billion. The third-quarter profit stood at $1.93 billion, down from $2.01 billion the previous year. However, new bookings, a key indicator of customer contract value, surged to $21.06 billion, compared to $17.25 billion a year ago and $21.58 billion in the previous quarter.