Daijiworld Media Network - Bengaluru
Bengaluru, May 30: Nandan Nilekani has dismissed concerns that artificial intelligence could make traditional IT services companies obsolete, asserting that the rise of AI has made Infosys more relevant than ever.
In his address to shareholders as part of the company's annual report, Nilekani said the rapid adoption of generative AI was creating new opportunities for technology service providers rather than reducing their importance.
“More than three 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,” he said.
Nilekani's remarks come amid growing concerns about the future of the country's $315-billion IT sector as AI-powered tools increasingly automate coding and software development tasks. Investor concerns have weighed heavily on technology stocks, with Infosys shares declining more than 28 per cent since the beginning of the year.
Addressing fears that AI could replace software engineers, Nilekani said the emergence of intelligent systems had raised fundamental questions about the role of IT services companies.
“Given that AI is a much larger and disruptive technology transition than ever before, the questions and doubts are louder and more insistent. The existential question asked of us is: If coding becomes automated, then why are we needed at all?” he said.
Nilekani argued that while coding may become increasingly automated, companies would continue to require expertise in testing, validation, cybersecurity, governance and large-scale technology modernisation.
He said enterprises would need help redesigning their systems to support AI-driven operations while ensuring reliability, security and scalability.
Infosys reported revenue of $20.16 billion last year, marking a 4.6 per cent increase over the previous year. Manufacturing companies contributed nearly one-third of the company's incremental revenue growth and account for around one-fifth of its business.
The Infosys chairman said the company would focus on preparing its workforce for the AI era through reskilling and redeployment.
“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 ended the financial year with 328,594 employees, an increase of 5,016 compared to the previous year.
Nilekani's views echoed those expressed by N. Chandrasekaran, who recently said enterprises would increasingly require AI operating systems built around infrastructure, data, governance and security.
Nilekani also highlighted the opportunities arising from combining modern AI technologies with existing enterprise systems.
“While the new capabilities bring intelligence, simplified user experience and extreme automation, the highly scalable and reliable transaction systems of yore are still highly relevant. This will also create a large set of opportunities,” he said.
Infosys has consolidated its AI initiatives under a platform called Infosys Topaz AI Next and integrated its software products business, EdgeVerve, into the platform.
The Bengaluru-based company has projected revenue growth of 1.5 to 3.5 per cent in constant currency terms for FY27, an improvement over its earlier forecast of 0 to 3 per cent. The company recorded its fastest annual growth in three years during the last financial year.
Meanwhile, Infosys Chief Executive Officer Salil Parekh received compensation of Rs 82.6 crore during the year, a 2.4 per cent increase over the previous fiscal. By comparison, K. Krithivasan saw his remuneration rise six per cent to Rs 28.11 crore.