As artificial intelligence continues to transform the technology industry, Infosys Chairman Nandan Nilekani has pushed back against concerns that automation could make traditional IT services irrelevant. Instead, he believes AI is creating new opportunities and making technology service providers more important than ever.
In his 22 May address to shareholders, Nilekani said the rapid shift from predictable machines to probabilistic AI systems is reshaping how businesses operate and what work now requires. He emphasized that Infosys remains highly relevant as enterprises increasingly need support to modernize their technology infrastructure for the AI era.
His remarks come amid a wave of AI product launches from companies such as Anthropic and OpenAI, which have recently expanded into the tech services space through partnerships with private equity firms. The developments have intensified investor concerns about the future of India’s $315 billion IT industry. Infosys shares have fallen more than 28% since the beginning of the year.
Addressing the debate, Nilekani highlighted a key question facing the industry: “If coding becomes automated, then why are we needed at all?” He argued that software development involves much more than writing code. Systems must be tested, validated, secured, and designed for speed, scale, and resilience. He also stressed the growing importance of cybersecurity and enterprise modernization as organizations race to adopt AI technologies.
To meet these demands, Nilekani said employees will need to develop new skills and adopt fresh ways of thinking. “We are well prepared for this challenge. We will completely prepare our talent for this new age and redistribute those released by productivity to grow new accounts and offerings,” he said.
Infosys reported revenue of $20.16 billion last year, reflecting annual growth of 4.6%. The company ended the year with 328,594 employees, an increase of 5,016 compared to the previous year. Manufacturing contributed nearly one-third of incremental revenue and now accounts for around one-fifth of the company’s business.
Nilekani’s views align with those of TCS Chairman N. Chandrasekaran, who said enterprises will increasingly require an AI Operating System built on infrastructure, data, models, agents, governance, and industry expertise.
Infosys has consolidated its AI offerings under the Infosys Topaz AI Next platform and integrated its software products business, EdgeVerve, into the initiative. The company also revealed that AI-related revenue contributed 5.5% of its third-quarter FY26 revenue of $5.1 billion, equivalent to approximately $280 million.
Looking ahead, Infosys expects FY27 revenue growth of 1.5%–3.5% in constant currency terms, compared with its earlier guidance of 0%–3%. The company also recorded its fastest annual growth rate in 3 years. Meanwhile, CEO Salil Parekh’s compensation increased 2.4% to ₹82.6 crore, while TCS CEO K. Krithivasan’s salary rose 6% to ₹28.11 crore.
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