Infosys Chairman Nandan Nilekani has dismissed concerns that artificial intelligence could render large IT services companies obsolete, arguing instead that AI will create significant growth opportunities for firms capable of helping enterprises integrate the technology into their operations.

Speaking at Infosys’ 45th Annual General Meeting on Tuesday, Nilekani said the rise of AI should be viewed as an opportunity rather than a threat, particularly for companies with deep expertise in enterprise technology and digital transformation.

AI to Enhance Rather Than Replace IT Services

Addressing growing concerns about the impact of artificial intelligence on the information technology services sector, Nilekani said companies that adapt quickly will be well-positioned to benefit from the shift.

“AI will not replace companies like ours. It will amplify those who move with purpose and adapt with speed,” he said.

While Indian IT services firms generally do not develop their own frontier AI models, Nilekani argued that their experience integrating complex technologies into large organisations gives them a crucial role in the AI ecosystem.

“Value will come from combining the world of models, agents with traditional transaction systems,” he said.

Infosys and other major Indian technology firms have spent decades building, modernising and maintaining enterprise software systems, expertise that could become increasingly important as businesses seek to deploy AI at scale.

Focus on Closing the AI Deployment Gap

Nilekani highlighted what he described as a significant “AI deployment gap” among large enterprises, referring to the challenges organisations face when integrating AI tools into existing business systems.

According to him, many companies have adopted AI models but continue to struggle with implementation, creating opportunities for technology service providers.

“The AI deployment gap in large enterprise clients is real, and closing that gap is where the work is,” he said.

AI deployment typically involves embedding artificial intelligence systems into existing workflows, software platforms and operational processes, often requiring extensive technical support and customisation.

Nilekani suggested that addressing these challenges could become a major source of business growth for Infosys and the wider IT services sector.

Infosys Eyes Expanding AI Services Market

The Infosys chairman said the company remains optimistic about its long-term prospects despite rapid advances in artificial intelligence.

“More than three years after GenAI was launched, Infosys is more relevant than ever before and well positioned for the decade ahead,” he said.

He added that Infosys is targeting a substantial opportunity in AI-led services and expects the market to expand significantly over the coming years.

“Infosys keen to tap into AI-first services opportunity of $300 to $400 billion by 2030,” Nilekani said.

He also noted that the company is already engaged in AI-related work with 90 per cent of its top 200 clients, reflecting growing enterprise demand for AI adoption and implementation.

AI Services Revenue Growing Rapidly

Infosys Chief Executive Officer Salil Parekh echoed Nilekani’s optimism, describing AI-powered technology modernisation as one of the company’s most significant growth areas.

“Modernisation of technology using agents is one of the largest areas today,” Parekh said.

He added that Infosys maintains close relationships with leading AI developers and infrastructure providers.

“All big frontier AI and compute companies are working with Infosys closely,” Parekh said.

According to the CEO, AI-related business is already contributing significantly to the company’s revenue.

“We already see about annualised $1 billion of AI services revenue, growing at a very good pace,” he said.

The remarks come amid broader debate about the impact of artificial intelligence on the IT services industry, with investors closely watching whether AI-driven automation will reduce demand for traditional technology outsourcing or create new opportunities in implementation, integration and enterprise transformation.

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