Infosys CEO Predicts AI Services to Drive 50% of Work by 2026
Salil Parekh highlights the rapid growth of AI services, projecting they will account for nearly half of Infosys' operations in the next 2-3 years.
AI services currently contribute over 8% to Infosys' revenue.
The company plans to hire 20,000 graduates trained in AI this financial year.
Parekh emphasizes the growing demand for AI services among enterprise clients.
Infosys CEO Salil Parekh announced at the Bloomberg New Economy Forum that AI services are anticipated to comprise nearly 50% of the company's operations within the next two to three years. Currently, these services account for over 8% of the firm's revenue and are expanding at a double-digit growth rate. Parekh noted that if this trend continues, AI services could represent 20-30% of Infosys' work in just a few quarters.
The rise in AI services is attributed to increasing enterprise demand, with Infosys focusing on developing AI agents, modernizing legacy systems, and coding solutions for clients. Despite being a relatively small segment of the business, the rapid growth indicates a significant market need. Parekh expressed optimism about the future of Infosys and the broader Indian IT services sector as AI technology becomes more integrated into operations.
In terms of workforce expansion, Infosys hired 20,000 college graduates last year and plans to recruit another 20,000 this financial year. These new hires are specifically trained in AI technologies, enabling them to assist clients in implementing and managing AI solutions. Currently, around 80,000 of Infosys' 300,000 employees are engaged in coding and AI-related projects.
Parekh also addressed the challenges of scaling AI infrastructure, noting that data has become essential to the AI ecosystem. He highlighted concerns regarding the costs of chips and the competitive landscape, which could impact the sustainability of newly built data centers. Additionally, he warned of potential backlash against AI expansion, particularly in Western markets, emphasizing the need for a balanced approach to social and economic factors.
Looking ahead, Infosys is poised to continue its investment in AI capabilities, with expectations of significant growth in this area. The company is actively exploring cost-effective AI models to meet client needs while navigating the complexities of infrastructure development. As the demand for AI services remains strong, the company is preparing for a transformative shift in its operational landscape over the coming years.
