AI is shaking things up for Indian IT companies: According to a new report, smarter tech means projects can be done with fewer people, so clients are pushing for cheaper deals.
This price squeeze is expected to stick around for a while, but as more businesses want AI-powered solutions, that demand could help balance things out.
TCS and Infosys see AI growth
Even with the pricing pressure, there is a silver lining: Falling costs make it easier for companies to use AI at scale.
Big names like TCS and Infosys are already seeing more of their revenue come from AI projects: TCS reported an annualized AI revenue run rate of $3.1 billion in just one quarter, and Infosys saw its own AI business jump 29% in three months.
As costs keep dropping and adoption grows across industries, expect even more new businesses built on AI soon.