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    BUSINESS & TRADE                                                       MARCH 13, 2026      |  The Indian Eye 32

                     How AI is Set to Expand Growth

                      Horizons for Indian Businesses

              Generative AI is beginning to reshape India’s corporate landscape, promising productivity
                  gains, new revenue streams and a broader market for the country’s IT services sector

            OUR BUREAU                                                                                            strategies across the sector. Rather
                                                                                                                  than triggering widespread job losses,
            New Delhi
                                                                                                                  analysts believe the technology will
                  rtificial  intelligence  is  rapidly                                                            drive  large-scale  reskilling  and  role
                  moving from experimenta-                                                                        evolution.
            Ation to implementation across                                                                           “Rather than significant job loss-
            Indian businesses, with early signs                                                                   es, the industry is likely to experi-
            suggesting that the technology could                                                                  ence role evolution and workforce
            significantly  boost  productivity  and                                                               reskilling,”  the  report  said,  reflect-
            expand the country’s technology ser-                                                                  ing a growing emphasis on training
            vices market in the coming years.                                                                     employees in data science, machine
                Industry analysts say the cur-                                                                    learning and AI integration.
            rent wave of generative AI (Gen                                                                           Policy discussions in India are
            AI) adoption may disrupt existing                                                                     also  increasingly  focusing  on  how
            workflows  in  the  short  term,  but  it                                                             AI can support inclusive economic
            is expected to ultimately strengthen                                                                  growth. Speaking at the Raisina Di-
            India’s IT ecosystem. According to                                                                    alogue 2026 in New Delhi, former
            a report by Nuvama, the Indian IT                                                                     Union Minister Smriti Irani said the
            services sector is likely to emerge                                                                   technology has broadened access to
            stronger from the disruption as en-  Managing Director (MD) of Adani Ports and Special Economic Zone Ltd (APSEZ) Karan Adani   digital tools and capabilities.
            terprises increasingly turn to technol-  talks about artificial intelligence (AI), accelerating the country’s development, with Hero Enter-  “What AI has done is democra-
            ogy partners to deploy AI solutions      prise Chairman Sunil Kant Munjal at the AI Impact Summit (ANI Video Grab)  tise the  usage of  technology,”  she
            at scale.                                                                                             said. “It is incumbent upon us as
               “It maintains that the Indian IT                                                                   citizens to use technology to a much
            Services industry will come out stron-  According to the report, “enter-  be slow, partly because of long-term   more productive end.”
            ger from the Gen AI disruption, with   prise clients shall have to come to   outsourcing contracts and the com-  Irani added that the expanding
            a net increase in its TAM, just like   IT services companies for any Gen   plexity of large enterprise infrastruc-  use of AI offers an opportunity to
            the earlier disruptions,” the report   AI implementation,” highlighting   tures.                      tackle long-standing development
            said, referring to the total address-  the strategic role Indian technology   Even so, early results from AI   challenges if used responsibly.
            able market.                      firms  are  likely  to  play  in  the  next   adoption are already becoming visi-  “We have today an opportunity
                The observation reflects a broad-  phase of digital transformation.  ble in operational efficiency. The re-  to address a lot of challenges that
            er pattern in India’s technology sector,   The adoption of AI in enterpris-  port noted that “Gen AI and agentic   the Indian citizens and government
            where previous technological shifts—  es is unfolding along two parallel   AI deployments are now delivering   deem fit for attention,” she said.
            from cloud computing to digital   tracks. In existing systems, compa- ~15–18% improvement on average      The growing importance of arti-
            transformation—initially caused un-  nies are cautiously introducing AI ca-  with some cases reaching ~30–35%   ficial intelligence was also highlight-
            certainty but eventually created new   pabilities through gradual upgrades.  efficiency gains.”       ed by External Affairs Minister S.
            opportunities for service providers.  In contrast, new digital projects are   Such productivity gains could   Jaishankar during the same forum.
                While the pace of AI-driven   increasingly  being  built  with  AI-en-  translate into lower operational costs,   He noted that technological capabili-
            change may create near-term vola-  abled architectures from the outset.  faster product development cycles   ties—particularly AI—are becoming
            tility for companies, the medium- to   “Brownfield changes are cautious   and improved customer services—  central to global economic and stra-
            long-term outlook for the sector re-  and  phased;  Greenfield  projects   factors that directly affect business   tegic competition.
            mains positive. “We remain positive   adopt latest AI-enabled architec-  competitiveness.                “Our discussions over the next
            on the sector from a medium to long-  tures from the start,” the report said,   At the same time, AI-driven ca-  few days will be about new capabil-
            term view; near-term volatility might   explaining the different approaches   pabilities are expected to command   ities  —  military,  economic,  energy,
            persist,” the report noted.       businesses are taking to deploy the   premium pricing in the technology   human resources and above all tech-
                One reason for this optimism   technology.                      services market. The report noted   nology,  particularly  artificial  intelli-
            is the growing reliance of global     For now, many companies are   that specialised AI skills could at-  gence,” Jaishankar said.
            enterprises  on  IT  services  firms  to   testing the waters through pilot   tract “higher billing rates (~30–40%   As enterprises continue experi-
            integrate AI into complex business   programmes and proof-of-concept   delta for certain new skills),” creating   menting with AI and gradually move
            environments. Large organisations   projects.  Enterprises are  “currently   new revenue streams for technology   toward large-scale deployments, the
            typically operate with a mix of legacy   testing Gen AI through PoCs and   providers even as some traditional   technology may not only transform
            systems, new digital platforms and   selectively injecting capabilities into   workforce-based service models face   internal operations but also position
            customised applications—an  envi-  ongoing projects,” the report added.  pressure.                    India’s IT industry at the centre of
            ronment where implementation ex-  However, the widespread replace-      The shift toward AI-driven ser-  the next wave of global technological
            pertise becomes critical.         ment of legacy systems is likely to   vices is also reshaping workforce   change.

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