Infosys chairman Nandan Nilekani has sought to ease concerns about artificial intelligence (AI) disrupting the traditional IT services industry, stating that the technology will ultimately enhance companies that are able to adapt quickly rather than replace them.
His remarks were made during the company’s 45th annual general meeting (AGM) held on June 23.
Nilekani said Infosys is well-positioned to benefit from the ongoing AI transition despite rising debate among investors and analysts about the long-term relevance of IT services firms in a world increasingly driven by generative AI technologies.
He categorically stated, “AI will not replace a company like ours. It will amplify those who move with purpose and adapt with speed.”
His comments come at a time when global technology shifts are raising questions about the future of software development and outsourcing, which have traditionally formed the core revenue base for India’s $300-billion-plus IT industry.
Many stakeholders are concerned that automation of coding tasks through AI tools could reduce demand for human-led software services.
However, Nilekani countered this narrative by emphasising that software development is far more complex than writing code alone.
He explained that enterprise software work requires a deep understanding of client environments, integration with legacy systems, cybersecurity frameworks, rigorous testing processes, governance structures, and architectural expertise.
These layers, he said, cannot be fully replaced by AI systems.
He further noted that the “AI deployment gap” within large enterprise clients remains significant, and bridging this gap represents a major area of opportunity for IT service providers like Infosys.
According to him, the real value lies in helping companies implement and operationalise AI within complex business environments.
Nilekani also highlighted that the AI wave is accelerating digital transformation efforts, particularly in legacy system modernisation.
Enterprises, he said, are now more urgently looking to replace outdated systems than ever before. “The AI revolution has made legacy modernization urgent in a way nothing else has,” he added.
He further stated that the next phase of growth will come from integrating AI models and autonomous agents into mission-critical enterprise platforms, enabling more intelligent and efficient business operations.
Infosys has already made significant progress in this direction, with the company currently working with 90% of its top 200 clients on AI-related initiatives.
Nilekani reiterated that Infosys has launched an “AI-First Value” framework and estimates that the AI-first services market could grow to between $300 billion and $400 billion by 2030.
On the financial front, Infosys reported revenue of $20.2 billion for fiscal 2026, reflecting a 3.1% growth in constant currency terms.
The company also generated free cash flow of $3.7 billion during the year, underscoring its financial resilience amid industry transformation.
