AI Transformation in Indian IT Sector by HCLTech

AI is revolutionising the global technology arena, and Indian IT companies must adapt their business strategies and develop indigenous language models to remain competitive, according to HCLTech’s CEO C Vijayakumar.

The Impact of AI on IT Services

During a recent industry conference in Mumbai, Vijayakumar pointed out that the influence of AI on IT services is proving to be significantly more disruptive than previous technological advancements, such as cloud computing and digital transformation. He mentioned that the fundamental aspects of AI differ greatly from those of previous innovations. The transformation brought by AI is distinct, and IT firms must proactively rethink how they classify their revenues to foster entirely new business models.

Efficiency Through Generative AI

Generative AI, capable of automating coding and various software development activities, is predicted to reduce project completion times and enhance efficiency. Vijayakumar referred to a prominent financial services organisation that saw its $1 billion technology overhaul, initially scheduled for five years, now expected to be finished in just three and a half years thanks to AI-driven efficiencies.

Developing Domestic Language Models

Additionally, Vijayakumar stressed the importance for India to create its own language models, thereby decreasing dependence on foreign AI systems and alleviating geopolitical uncertainties. He expressed concern that the current open-source nature of these language models may not persist, highlighting that they will become vital tools in global geopolitics.

Investment in AI Training Infrastructure

As large language models (LLMs) emerge as essential resources in AI development, he called for increased investment in domestic AI training capabilities. With the costs associated with building these models decreasing, India must discover cost-effective solutions for their development.

Staying Agile in an AI-driven World

Additionally, Infosys CEO Salil Parekh echoed the sentiment for agility, urging Indian IT firms to remain alert in the face of AI-induced changes. He remarked that a state of constant vigilance is required to keep pace with ongoing industry developments.