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Infosys Chairman Nilekani: AI Boosts Relevance, Dismisses Automation Fears

Nilekani says AI makes Infosys more relevant, not obsolete.

May 30
3 min read
Infosys Chairman Nilekani: AI Boosts Relevance, Dismisses Automation Fears

Top Summary

  • What happened: Infosys Chairman Nandan Nilekani addressed concerns that AI automation could make traditional IT services obsolete, arguing that it actually increases Infosys's relevance.
  • Why it matters: Investor concerns over the IT sector's future amid AI advancements have led to a decline in IT stocks, making Nilekani's reassurance crucial.
  • What changes: Infosys is focusing on modernizing clients' IT systems for AI demands and preparing its workforce for new AI-driven roles.
  • Who is affected: Infosys employees, investors, clients, and the broader Indian IT sector are affected by this shift towards AI integration.

AI's Impact on Infosys

Infosys Chairman Nandan Nilekani has countered fears that automation will render traditional tech services obsolete. He maintains that AI tools have increased the company’s relevance. Infosys is focused on modernizing its clients’ technology to meet the demands of AI.

 

"More than 3 years after the launch of Generative AI, we can unequivocally say that Infosys is more relevant than ever, and we have a bright future in front of us."

 

Addressing Investor Concerns

Nilekani’s comments come amidst growing investor concerns about the IT sector's future. This follows partnerships between AI-native firms like Anthropic and OpenAI with private equity firms. Infosys’s shares are down more than 28% since the start of the year.

Nilekani directly addressed the "existential question":

"If coding becomes automated, then why are we needed at all?"

 

Infosys' Strategy for the AI Era

Infosys is focusing on opportunities within the software development lifecycle. This includes testing, validation, and designing IT systems for speed, scale, and resilience. Cybersecurity will be a key priority.

The company plans to prepare its workforce for new AI-driven roles.

"We will completely prepare our talent for this new age and redistribute those released by productivity to grow new accounts and offerings," Nilekani said.

 

Infosys ended last year with 328,594 employees, up by 5,016 from the previous year.

Opportunities in Blending AI and Legacy Systems

Nilekani emphasized the opportunities arising from blending new AI models with existing tech systems. He stated that while AI brings intelligence and automation, the reliable transaction systems of the past remain relevant.

Tata Consultancy Services Ltd chairman, N. Chandrasekaran, echoed similar sentiments. He highlighted the importance of trust, security, and data sovereignty as AI scales.

Infosys has bundled its AI offerings under Infosys Topaz AI Next. This platform includes the company's software products arm, EdgeVerve, acquired in 2014.

Financial Performance and Future Growth

AI revenue made up 5.5% of Infosys's third quarter (October-December 2025) revenue, amounting to $280 million. Infosys expects 1.5-3.5% revenue growth in constant currency terms in FY27.

Infosys ended last year with $20.16 billion in revenue, up 4.6% year-on-year. A third of incremental revenue came from manufacturing companies.

What to Watch Next

Investors will be closely monitoring Infosys's AI revenue figures and the impact of its AI Next platform. The company's ability to successfully train and redeploy its workforce for AI-related roles will also be a key indicator of its future success.