Infosys Bets Big on AI as Demand Surges

Demand for artificial intelligence (AI)-based services is rising significantly for Indian IT companies, with Infosys expecting AI to become a major contributor to its business. CEO and Managing Director Salil Parekh said AI services accounted for 8% of the company’s total revenue in the quarter ended June, registering double-digit growth quarter on quarter. He expects AI services to contribute nearly half of the company’s revenue over the next two to three years. Work involving AI agents, coding tools and legacy technology modernisation is also expanding rapidly. Parekh said these activities, though currently a small part of the business, could account for 20–30% in the coming quarters. Speaking at the Bloomberg New Economy 2026 summit, he also said Infosys hired 20,000 freshers last year and plans to recruit another 20,000, training them in AI for client projects. Around 80,000 of its three lakh employees are already working on coding tools and internal projects.

Meanwhile, Infosys co-founder Nandan Nilekani dismissed fears that AI would cause massive job losses in India’s IT services sector, calling such claims false and describing them as marketing linked to the large investments flowing into AI. He said demand for IT services is growing because businesses need support from companies such as Infosys to navigate the complex process of AI transformation. Nilekani urged IT firms to develop new capabilities and train employees in emerging technologies to meet changing industry needs.