HCLTech CEO C Vijayakumar has emphasized the need for Indian IT companies to reevaluate their business strategies and for India to develop its own language models, as artificial intelligence continues to reshape the industry.
The rise of generative AI poses a significant challenge to the traditional business models of Indian IT firms, which primarily offer operational support to U.S. clients and provide software as a service. Vijayakumar highlighted that the disruptions brought about by AI are unlike previous shifts like cloud computing or digitization. He urged the industry to be proactive in adapting to these changes, noting the need to rethink revenue structures and explore entirely new business avenues.
“Generative AI will transform productivity, with tasks such as writing software code becoming faster and more efficient,” he said. For instance, a $1 billion tech transformation project at a major financial firm, which would traditionally take five years, could now be completed in just three-and-a-half years due to AI advancements.
Vijayakumar also pointed out that India must build its own language models to reduce reliance on foreign technologies, which could be impacted by geopolitical challenges. He warned that language models may not remain open-source indefinitely and that nations might restrict access beyond their borders.
“To maintain a long-term competitive edge, India must invest in developing its own language models,” he added. “The cost of creating the necessary training infrastructure is decreasing, and we need to explore cost-effective ways to train these models.”
Industry leaders, including Infosys CEO Salil Parekh, echoed Vijayakumar’s sentiments, urging the IT sector to remain vigilant and adaptable. “We have to be paranoid. We have to be non-complacent. That is the way we can manage to keep up with what’s going on in the industry,” Parekh said.
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