AI Fears Wipe Rs 6 Lakh Crore From IT Stocks; how TCS, Infosys and other tech companies are changing their strategies

The situation is not entirely negative, according to recent research. JP Morgan believes that AI is “ruled for extinction” but will create new opportunities in areas such as modernizing legacy systems and creating AI trust services, as cited by ET.HSBC emphasized that AI generally needs to work within existing business systems, in which IT companies still play a crucial role. “In large organizations, AI is unlikely to operate as a standalone ‘magic box’. It typically needs to work with data systems, access permissions, audit checks and risk controls, areas where large IT vendors and enterprise platforms are still important,” he said.The main concern among investors is whether AI will reduce the profits of IT companies by reducing the labor required for projects. Motilal Oswal estimates that 9 to 12% of industry revenue could be lost over 3 to 4 years due to productivity gains generated by AI.India’s largest IT companies are responding with practical changes. They use AI coding assistants and automation tools throughout their operations. As Sandeep Gogia of Equirus Capital said: “They are training their staff in AI tools and AI-assisted coding, and learning to work with AI agents, either their own or through partners. »Among the major players, TCS has invested in a 1 GW AI data center and trained over 350,000 employees in AI skills. Infosys is focusing on its Topaz platform and has developed over 100 AI agents for specific business tasks. HCL Tech differentiates itself with engineering-focused AI solutions, while Wipro has committed $1 billion to AI development over three years.The main challenge is not whether companies will use AI, but rather who will benefit most financially. IT companies are trying to move up the value chain, offering more sophisticated services while using AI to maintain profit margins.As Ventura’s Vinit Bolinjkar put it, there is a shift “from a workforce-driven model to a results-driven, intellectual-property-driven model.”(Disclaimer: Recommendations and opinions on stock market and other asset classes given by the experts are their own. These opinions do not represent those of The Times of India.)