AI Won’t Replace IT Services Firms, Will Strengthen Them: Infosys Chairman Nandan Nilekani

Infosys Chairman Nandan Nilekani has pushed back against the idea that artificial intelligence will shrink the need for IT services companies. Speaking at the company’s 45th Annual General Meeting on Tuesday, Nilekani said such doubts are natural given that AI represents the biggest technological shift the industry has ever seen. He said the AI era demands new skills and new ways of thinking, and that Infosys is actively preparing its workforce for that shift, adding that the company is ready for the decade ahead.

Why AI Can’t Do It Alone
Nilekani pointed out that software development involves far more than writing code. Rigorous testing, robust architecture, cybersecurity, and data governance are all critical stages that AI cannot replace on its own.
According to him, the real job of IT companies like Infosys is to fix the gaps that show up when large corporate clients try to deploy AI technology effectively at scale. He argued that AI will strengthen companies that are already used to adapting quickly, rather than wipe them out.

Eyeing A $400 Billion Opportunity
Nilekani explained that the AI revolution is pushing clients worldwide to fix and modernize decades-old legacy software systems, and that this shift is opening up fresh business opportunities for Infosys. He noted that clients are now increasingly choosing to build software in-house rather than simply buying it off the shelf. The company hired more than 20,000 freshers in the last financial year alone. Nilekani said Infosys has introduced an “AI-first Value Framework” to help global companies extract value from AI, and that the company has a clear plan to capture a share of the $300-400 billion (roughly Rs. 25-33 lakh crore) AI-first market opportunity expected to emerge by 2030.