AI Adoption Gap Creates New Opportunities for Infosys, Says Nandan Nilekani

Infosys Chairman Nandan Nilekani said artificial intelligence will strengthen, rather than replace, IT services companies, as enterprises continue to grapple with the complexities of deploying the technology at scale.

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Speaking at Infosys’ 45th annual general meeting on Tuesday, Nilekani said large enterprises are facing a significant gap between investments made in AI and the returns generated from those investments. He said bridging that gap represents a major opportunity for companies such as Infosys.

“The AI deployment gap in our large enterprise clients is real, and closing that gap is where the work is. AI will not replace companies like ours. It will amplify those who move with purpose and adapt with speed,” Nilekani told shareholders.

Enterprise Adoption Remains Challenging

According to Nilekani, while generative AI and agentic AI are improving productivity and accelerating software development processes, widespread deployment across enterprises remains difficult. Issues related to fragmented data, change management and cybersecurity continue to pose challenges.

He said enterprise solutions require integration with existing systems, extensive testing and strong governance frameworks. Data management practices, he added, must be aligned with an organisation’s regulatory and operational requirements.

Nilekani noted that context remains critical in enterprise AI, as each company has distinct legacy systems and data structures. He had made similar observations in the company’s annual report, stating that modernising existing systems is significantly more complex than building new platforms.

Legacy Modernisation Seen As Growth Driver

Nilekani said the rise of AI has increased the urgency for enterprises to modernise decades-old technology infrastructure. He said clients are looking to eliminate accumulated technical debt, creating fresh opportunities for IT service providers.

“The AI revolution has made legacy modernisation urgent in a way nothing else has. Clients are moving to retire technical debt accumulated over decades,” he said during the virtual meeting attended by 326 shareholders.
He added that integrating AI models and intelligent agents with traditional transaction systems would define the next phase of growth for the industry.

AI Business Contributes $1 Billion Revenue

Infosys Chief Executive Officer Salil Parekh said a challenging macroeconomic environment has affected discretionary technology spending, but the company continues to focus on AI-led services.

Parekh said AI-related business currently contributes about $1 billion in revenue, accounting for nearly 5.5% of Infosys’ total business. The company is working on around 4,800 AI projects and has developed 600 AI agents.

Infosys is already engaged with 90% of its top 200 clients in their AI adoption journey. The management said the expanding use of AI, combined with the need to modernise legacy infrastructure, is opening new avenues for growth despite concerns over the long-term impact of automation on the IT services industry.