How AI is transforming India's IT sector
Business
AI is shaking up the Indian IT world, changing how companies make money and what services they offer.
After a slow 2025, thanks to unpredictable global tech spending and political tensions, 2026 brought even more disruption as AI started to reshape traditional business models.
AI's impact on IT services
With a sharp drop in the Nifty IT index, it's clear that companies are moving away from classic roles like app development and leaning into AI-focused jobs.
Analysts say traditional IT services could see revenues fall by up to 50% as AI makes things more efficient.
Still, there's hope: updating old software (a $600 billion opportunity) and growing demand for digital transformation are helping some firms stay strong, even as the industry adapts to this new normal.