AI fears shadow optimism at Nasscom’s annual tech meet

Tata Sons, and Nandan Nilekani, chairman of Infosys, struck a more optimistic note, arguing that IT services firms would remain relevant, playing a critical role in integrating AI technologies into clients’ back-end systems.Amid deepening fault lines, at least two IT CEOs put on a brave face during the Nasscom event, hinting at a turbulent short-term outlook.While Vijayakumar highlighted the human cost of automation, Tata Consultancy Services' (TCS) K. Krithivasan pointed towards revenue cannibalization.“See, we don't have to really incentivize because everybody wants to learn this tech.

We need to tell them that one: I am giving you enough opportunity to learn, and two: I am encouraging you to ensure that every solution you provide to your customer is AI-first. As I said, even if it means that we are cannibalizing the revenue,” he said on 23 February.However, mid-level IT executives said there was still ambiguity over the new technology's use and impact.

“We don’t know what AI’s impact will be. We might enter into partnerships with every hyperscaler and AI company in the world, but that is of no use if our clients do not have up-to-date technology to embed this AI.

Currently, conversations revolve only around productivity as clients want to bill fewer people,” said an executive at one of the country’s five largest IT services firms, on the condition of anonymity.Automation tools reduce billing costs by automating much of the work. Until now, the industry has relied on humans to manually run IT functions.