Infosys Ltd chairman Nandan Nilekani argues that artificial intelligence (AI) may not completely replace conventional IT services. He rejected the growing concerns and stated that AI automation has helped companies modernise technologies and to keep up with the AI demand. While presenting the company’s annual report, Nilekani told shareholders that Infosys is confident that AI has increased demand for its expertise rather than making it obsolete.

He said, “More than 3 years after the launch of Generative AI, we can unequivocally say that Infosys is more relevant than ever, and we have a bright future in front of us. The shift from predictable machines to probabilistic ones is as consequential as the speed of adoption, and it is reshaping what the work now requires.”

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"If coding becomes automated, then why are we needed at all?": Nilekani 

With the expanding AI automation tools by companies like Anthropic and OpenAI, investors are concerned about AI reducing the importance of traditional IT services companies and whether it will remain relevant in an AI-driven world. Due to this reason, investors have been selling IT stocks in large numbers, and the Infosys shares are down more than 28% since the beginning of the year.

However, Nilekani reassured stakeholders and investors that AI will not make IT services companies irrelevant. “Given that AI is a much larger and disruptive technology transition than ever before, the questions and even doubts are louder and more insistent. Moreover, the existential question asked of us: If coding becomes automated, then why are we needed at all?” he questioned.

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He emphasised that the software development life cycle requires rigorous testing, system resilience, cybersecurity, and large-scale IT modernisation to help keep pace with rapid AI demand and advancements. However, he also urged the need for a new business model to drive the future of IT. “We are well prepared for this challenge. We will completely prepare our talent for this new age and redistribute those released by productivity to grow new accounts and offerings,” he added.

Infosys reported annual revenue of $20.16 billion last year, marking a 4.6% year-on-year increase. Its workforce also expanded to 328,594 employees, up by 5,016 from the previous year.