The global economic landscape is being reshaped by a “perfect storm of multiple colliding trends,” creating unprecedented uncertainty, according to Nandan Nilekani, Chairperson of Infosys Ltd.Â
Nilekani highlighted that tariff shocks, the rapid proliferation of artificial intelligence (AI), and the ongoing energy transition are collectively forcing a fundamental shift from a single global market towards fragmented blocs, compelling businesses worldwide to adapt swiftly.
“As we look around us, there is a perfect storm of multiple colliding trends that is raging,” Nilekani told shareholders at the annual general meeting. “The world is shifting from a single global market to fragmented blocs, forcing companies to make strategic choices and navigate between regions.”
Nilekani emphasized that the imposition of tariffs is a clear signal for businesses to de-risk their sourcing strategies. This trend is accelerating supply-chain diversification, with bilateral and regional trade routes increasingly dominating global commerce. Companies are now faced with the critical challenge of navigating complex geopolitical dynamics and making strategic choices across different regions.
“Tariffs are signalling to us that businesses must also derisk their sourcing. With bilateral and regional trade routes emerging as dominant forces, there is a clear need to accelerate supply-chain diversification,” he said.
Regarding AI, Nilekani underscored its transformative, yet disruptive, impact. He noted that modernizing legacy systems and overhauling data architectures to make data consumable by AI have become unavoidable imperatives for enterprises. Businesses, he stressed, require both “AI foundries for innovation and AI factories for scaling” to effectively leverage the technology. However, global regulatory variances across different regions present significant complexities and implementation challenges for AI systems, adding another layer of uncertainty.
The Infosys chairman also touched upon the energy transition, stating that its success will hinge on continuous innovation in critical areas such as solar, wind, battery storage, hydrogen, and nuclear technologies.
“Every type of business in every part of the world is having to first adapt to rapidly changing business and technological disruption before advancing into an uncertain and unfamiliar future,” Nilekani said.
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