GPT-5 could disrupt India's IT sector, slow revenue growth
OpenAI just dropped GPT-5 last week, and it's already making waves in India's massive $283 billion IT sector.
With big upgrades in coding, math, and visual tasks, this new AI could push clients to expect faster work for less money.
Analysts at Kotak Institutional Equities say we might see IT revenue growth slow down by 2-3% over the next few years because of these efficiency gains.
Potential productivity boost and its implications
GPT-5 can boost productivity by up to 40%, which means fewer human coders may be needed—especially in areas like customer service and outsourcing.
While companies could save on staffing costs, major firms like TCS and Infosys will need to rethink how they price their services.
Still, experts believe that after some initial challenges, smarter use of AI like GPT-5 will help Indian IT companies offer more innovative, higher-value services down the line.