Indian IT majors gung-ho on AI to tap new deals, and it's paying off

During his time as the CTO of SAP Labs, Vishal Sikka developed a successful database technology known as HANA. This cutting-edge technology is utilised for running business applications and real-time analytics. When Sikka became Infosys CEO, he carried his expertise and experience with HANA to his new company.

Acknowledging that artificial intelligence (AI) could play a significant role in Infosys's future, Sikka and other prominent IT executives donated $1 billion to OpenAI, a US-based AI research organisation. He was convinced that developments in AI may help Infosys immensely in developing software systems and transforming several of its service offerings.

Infosys and AI

For Infosys, this calculated risk on AI has paid off nicely. Prominent IT firms like TCS, HCL and Wipro have used AI in various initiatives to support their clients' success.

For example, TCS is currently engaged in more than 50 AI projects to enhance productivity, produce content and raise the bar for customer service. In the meantime, Infosys is working on 80 AI projects about data analysis and software development.

These impressive initiatives show how Indian IT companies are using AI to deliver solutions that advance their clients' businesses.

Huge benefits

AI is being offered by Indian IT service providers more and more, which benefits several industries. These advantages have ramifications for the economy, society and labour market, among other sectors.

AI can significantly lower expenses and turnaround times. Efficiency gains are noticeable in various areas, including automating intricate IT maintenance procedures and facilitating quick and precise data management.

Examples include Infosys Nia and Wipro's HOLMES platform, which has decreased entry barriers for agents in telecom companies by up to 80 per cent and, in some cases, enhanced productivity by as much as 50 per cent. Similarly, Wipro's Holmes has contributed to accelerating digital transformation with its cognitive computing powers.

AI may affect healthcare and other important societal roles. For example, AI-powered screening technologies identify conditions like tuberculosis and diabetic retinopathy. These programmes help efficiently manage essential natural resources and enhance healthcare results.

Labour market benefits

By automating tasks, AI is changing the nature of the labour market. Employee focus on higher-value tasks is made possible by this, which raises job satisfaction and productivity levels.

This is demonstrated by how businesses like Infosys and Wipro reallocate their staff to more important duties after integrating AI technology. Additionally, to improve their AI capabilities, Indian IT companies are working with multinational tech giants.

For example, HCL collaborates with Microsoft to implement generative AI capabilities, while Wipro has teamed with Google to leverage its AI tools -- these collaborations centre on adopting new technology and educating workers on how to use them efficiently. Wipro's intention to train 20,000 employees on Google's generative AI technology is an obvious illustration of this.

Nevertheless, it is crucial to recognise that India's adoption of AI is beset by issues such as high technological costs, talent scarcity, and antiquated infrastructure. Becoming a mature AI practitioner is to go from being an explorer to an enthusiast, expert and advocate.

AI-driven product

For instance, Infosys has introduced Topaz, an AI-driven product that uses generative AI technology to provide various services, solutions, and platforms. This project aligns with the expanding trend of IT firms using AI to improve operational effectiveness and business value.

Infosys Topaz strives to create value through innovation and efficiency improvements to maximise the potential of individuals, organisations and communities.

One of the main features of Topaz is the integration of AI technologies, such as AI, with data analytics. It has a variety of uses in numerous industries. With access to more than 12,000 AI assets, more than 150 pre-trained AI models and more than 10 AI platforms, Topaz is led by specialists in AI methodologies and data strategy. These tools enable companies to find expansion opportunities, create interconnected ecosystems, and attain large-scale efficiencies.

The creation of Infosys Topaz is consistent with the business's plan to become an AI-first enterprise. This approach entails spending money on technology and people to satisfy the growing demand from clients wanting to become AI-native businesses. Infosys has established alliances with tech companies like NVIDIA and Google Cloud to enhance its competencies in this domain.

Major milestone

All things considered, Infosys and the Indian IT sector have achieved a significant milestone with the launch of Infosys Topaz, which leverages AI and generative AI technologies to propel business transformation and generate value. This reflects a larger tendency in the software services industry to innovate to stay competitive in the quickly evolving digital ecosystem.

AI is no longer viewed by Velu Sinha, Sudheer Narayan and Saikat Banerjee from Bain & Company as a specialised technology for businesses. They point out that the AI market in India is expected to increase and is estimated to be worth $3 billion in the coming years.

Market growth

“It is approximately 1 per cent of the global pie. However, the market is expected to grow at the second-fastest rate of 20 per cent among major economies over the next five years, behind only China. Over the last few years, India has demonstrated rapid adoption of different technologies with the rise in penetration of the internet, fintech, e-commerce, edtech, health tech, and an uptick in enterprise investment in cloud and information technology,” the authors wrote in a report in October 2022.

They highlight how technology is being adopted more widely in India, which has built a solid foundation of data, knowledge, and infrastructure that can be used to create value using artificial intelligence. It is interesting to note that when it comes to using AI at scale, Indian suppliers are either ahead of or equal to their international counterparts. They have a 65 per cent success rate in scaling up prototypes for production, compared to 49 per cent for worldwide providers.

Adopting AI solutions

Over 50 per cent of businesses have already adopted analytics and AI solutions, according to a PwC India report, showing a marked increase in usage. According to the report, global firms lean more towards innovation, whereas Indian organisations prioritise customer-centric digital transformation solutions and customisation.

The survey performed by PwC India yielded significant findings, including the acknowledgement of the challenges associated with technology investment and the importance of coordinating digital transformation with organisational objectives.

Indian IT services have carved out subsidiaries and verticals to focus more on artificial intelligence and machine learning, and these initiatives have already started paying big dividends for them.