LOADING...
Indian IT firms ready for AI-led services transition: Ashwini Vaishnaw
Despite fears of job losses, IT sector is moving toward an AI-driven services model

Indian IT firms ready for AI-led services transition: Ashwini Vaishnaw

Feb 18, 2026
03:41 pm

What's the story

India's Information Technology (IT) Minister Ashwini Vaishnaw has said that Indian IT companies are well-positioned to deliver artificial intelligence (AI)-led services. The minister made the statement during his interaction with Moneycontrol on the sidelines of the India AI Impact Summit in New Delhi. He emphasized that despite fears of job losses, the sector is moving toward an AI-driven services model.

System upgrade

Legacy IT systems need upgrading for AI model transition

Vaishnaw stressed that global enterprises are burdened with numerous legacy IT systems that need to be upgraded. He said this is essential to leverage the capabilities of modern AI models. The minister also noted that Indian IT services firms are uniquely positioned to take on large-scale AI transformation projects, amid fears of automation-led efficiencies and slower discretionary spending weighing on growth.

AI impact

Addressing fears of job displacement and upskilling

Vaishnaw described the global shift to AI as a tectonic change that will redefine industries and workflows. He also addressed fears of large-scale job displacement by stressing the importance of upskilling and reskilling. The minister said these processes are already underway through coordinated efforts by industry, academia, and government bodies.

Advertisement

Business prospects

Need for international cooperation on AI risks

Vaishnaw also highlighted that AI-driven modernization of legacy systems presents a major opportunity for Indian IT firms. This is especially true as the industry navigates workforce transitions. He emphasized a growing global consensus on AI as a transformative force, while stressing the need for coordinated international efforts to mitigate risks such as cyber threats and misuse.

Advertisement