India’s IT industry has been riding the wave of Artificial Intelligence (AI) innovation, but beneath the surface, a silent revolution is unfolding. As AI integrates deeper into our daily lives and economy, the pressure to ensure fair play in our markets is mounting. In this article, we’ll explore how India’s IT majors are coping with the challenges and opportunities presented by AI.
AI-Powered Resilience in a Challenging Global Landscape
The first quarter of Fiscal Year 2025-26 has delivered a mixed bag for India’s leading IT services companies – TCS, Wipro, Infosys, Tech Mahindra, and HCLTech. While pockets of strong deal wins and a growing emphasis on AI offered glimmers of hope, persistent macroeconomic uncertainties, particularly in key Western markets, continue to translate into cautious client spending and a generally subdued revenue growth trajectory. The results underscore a period of strategic adaptation, as the industry navigates the complexities of AI-driven business transformation.
The Quiet Revolution Unfolding Internally
As India’s e-commerce market is expected to reach the $345 billion mark by FY30, the industry is scaling rapidly, and so is the pressure behind the scenes. Seasonal sales bring in an avalanche of demand, and with it, a deluge of employee queries, tech issues, and HR chaos. While most AI innovation has been aimed at the customer, a silent revolution is unfolding internally. AI-powered tools are being leveraged to streamline operations, enhance employee experience, and improve overall efficiency.
AI Regulation: The Interplay Between Competition and Compliance
The Q1 FY26 results from India’s IT majors paint a picture of resilience in a challenging global landscape. While revenue growth remains largely subdued across the board, the emphasis on large deal wins, cost efficiencies, and strategic investments in cutting-edge technologies like GenAI is a common thread. The industry is clearly in a transitional phase, where the initial hype around AI is beginning to translate into tangible client engagements, albeit with a lag in top-line impact. As AI integration deepens, the need for targeted competition rules and broader AI regulations is becoming increasingly pressing. For example, if broader AI regulations mandate a certain level of explainability for high-risk AI systems (akin to the Chinese approach), this directly aids the Competition Commission of India (CCI) in its efforts to ensure fair competition in the market.
The Way Forward: Balancing Innovation with Regulation
As AI continues to transform India’s economy, from cricket to temple festivals, it’s essential to strike a balance between innovation and regulation. By embracing the benefits of AI while ensuring fair play in our markets, India can position itself as a leader in the global AI landscape. The industry must continue to adapt, innovate, and invest in cutting-edge technologies like GenAI, while also ensuring that AI-driven business transformation is done in a responsible and compliant manner. Only then can we unlock the full potential of AI and drive sustainable growth for India’s IT industry.
Originally published on https://www.financialexpress.com/life/technology-ai-tracker-from-cricket-to-temple-festivals-ai-is-transforming-how-india-thinks-plays-protects-3920263/
