Athira Sethu
Kochi. 24 June 2026
Nandan Nilekani, chairman of Infosys, has stated that artificial intelligence (AI) will not bring an end to the IT services industry. According to him, companies that are ready to evolve and adapt to changes in technology will become more resilient.
The above statement was delivered in the context of Infosys’ 45th annual general meeting. Many people are concerned about the rise in the use of AI, particularly generative AI, which can perform activities such as writing code. This has led many to question if IT companies will remain relevant in the coming years.
However, according to Nilekani, IT companies do more than just coding. Nilekani states that the process of software development is huge. There are many tasks associated with software development such as designing systems, checking security issues, testing software, managing legacy systems, and integration. Coding is a tiny component of all these processes.
As per Nilekani, “AI will not replace a company like ours; rather, it will augment companies that are prepared to change and evolve.” The overall premise of his speech was that AI will be a tool and not a substitute.
Nilekani further added that despite being highly effective, many large enterprises still struggle with the adoption of AI into their operational processes. Even though these tools have proven themselves as extremely effective, it often becomes difficult to utilize them in big enterprises due to the presence of outdated and complex technical infrastructure. In his words, this issue creates a serious “gap” between the testing of AI and the deployment of AI in large-scale operations.
According to him, bridging of this gap would be one of the key tasks of IT service providers in the next few years. He sees this area as the main field for the activities of firms like Infosys.
Moreover, he claimed that AI does not reduce demand for IT services. On the contrary, it increases demand. Nowadays, many firms are looking for ways to update their legacy IT infrastructure to enable its interaction with AI software. This phenomenon is known as modernization and currently represents one of the hottest trends.
According to Nilekani, this trend grows rapidly due to the AI revolution when many enterprises strive to modernize their infrastructure to make use of AI in their operations.
Further, he added that the next level of growth for IT firms would be achieved by utilizing AI technology and smart “agents” within the business processes. This involves deep expertise and extensive technological efforts.
Infosys is already moving in this path. According to Nilekani, the firm has engaged itself in AI related projects for around 90% of its top 200 customers. This indicates that many firms are already engaging themselves in AI in one form or the other.
In the end, he stated that AI would emerge as the main growth driver for the IT industry. Infosys has recently announced revenues worth $20.2 billion in fiscal year 2026 with good cash flows, despite undergoing the big technological shift.
