'Physical AI' becoming $1T industry by 2030: What is it?
What's the story
HCLTech CEO C. Vijayakumar, referencing analysts' predictions, mentioned that "physical AI" is expected to grow into a trillion-dollar industry by 2030. Speaking at the World Economic Forum (WEF) in Davos, Switzerland, he explained that physical AI is the combination of robotics and AI to allow machines to perform complex real-world tasks, with improved stability and contextual intelligence.
Future prospects
HCLTech's new service lines and growth targets
Vijayakumar also revealed that HCLTech is looking at several new service lines beyond AI modernization of existing operations. He said these could become billion-dollar revenue streams in a few years. One such line is the "AI Factory," which includes large-scale compute and infrastructure programs powered by GPUs, data-center planning, professional services, and managed services.
Talent shift
AI capabilities and talent acquisition strategy
Vijayakumar highlighted that 25-35% of coding and development work at HCLTech is done by AI. The company has hired over 10,000 new engineers this year but is now focusing on "elite" talent instead of just numbers. He said, "It's shifting from quantity to quality." This change in approach shows how much importance HCLTech gives to its workforce in the age of AI.
Market changes
AI's impact on client spending and tech services pricing
Vijayakumar also noted that AI is driving client spending decisions, especially on modernization. He said future transformation deals might range from $50 million to $200 million, driven by cost optimization or AI-first redesigns. Further, he said the rise of AI-led work is changing how tech services are priced with a shift toward outcome-based engagements.