Indian IT firms shifting to AI—focusing on integration, not invention
What's the story
India's leading IT companies are transforming into artificial intelligence (AI)-native firms, prioritizing high-margin applications and integration over capital-intensive foundational research. A look at the FY25 annual reports of industry leaders like Tata Consultancy Services (TCS), Infosys, Wipro, and Tech Mahindra shows they are not aiming to create foundational AI. Instead, they are positioning themselves as key integrators in the global AI race.
Strategic shift
Shift in strategies of these companies
The annual reports of these companies show a clear shift from general digital transformation to a specific AI focus. TCS' strategy is framed within "The Perpetually Adaptive Enterprise," with an "AI-First approach." Infosys' theme is "AI Your Enterprise," while Wipro talks about its role as an enabler in "Helping Clients Build AI-Powered Future-Ready Businesses." Tech Mahindra also echoes this sentiment with its slogan, "AI Delivered Right."
Workforce development
Focus on upskilling workforce
The IT giants are also focusing on investing in human capital and upskilling their workforce. TCS has revealed that over one lakh of its employees have gained "higher order skills in AI/ML and GenAI." Infosys has reported that over 2.70 lakh of its employees are now "AI-Aware." Wipro and Tech Mahindra have also shown similar trends, emphasizing the importance of preparing their workforce for an AI-driven future.
AI integration
Need for data architecture
Infosys Chairman Nandan Nilekani has stressed the need for modernizing legacy systems and creating a data architecture that can be consumed by AI. He said, "The advent of AI with all its possibilities and potential creates another arc of uncertainty." Nilekani urged enterprises to have an AI foundry and factory to fuel innovation as well as scale.
Potential
AI is a gifted child prodigy born in a library
Anand Mahindra, Chairman of the Mahindra Group, compared AI to a prodigy with access to all the knowledge in the world. He said, "Let us think of AI as a gifted child prodigy born and brought up in a library." This highlights the potential value that well-utilized AI can create for businesses like Tech Mahindra.
Collaborations
Partnerships with hyperscalers and chipmakers
The Indian IT giants are not building their own large language models (LLMs) to compete with OpenAI or Google. Instead, they are forming strategic partnerships with hyperscalers such as Microsoft, Google, and AWS, and chipmakers like NVIDIA. These collaborations give them access to the latest models and infrastructure needed for effective AI integration into their businesses.
AI workforce
Generative AI is a civilizational shift, says TCS chairman
TCS believes generative AI is not just another tech cycle but a "civilizational shift" that will benefit every industry. Tata Sons Chairman N Chandrasekaran, who also chairs the TCS board, said the company will create a "large pool" of AI agents to work with humans and deliver solutions in a "human-AI" model in the future. This shows their commitment toward integrating AI into their operations and services.