As AI panic grips IT services stocks, Anand Mahindra weighs in on possible impact scenarios, cites famous Mark Twain quote: 'Reports of my death are greatly exaggerated'

In recent days, markets have been swinging wildly in response to a fictional AI scenario painted by a report that imagines a 2028 where coding tools make software production almost as cheap as electricity. The possible ripple effects, from shrinking IT exports to potential headcount reduction in IT services companies which could impact other sectors and even country's macro-economy, has set off alarm bells about the future of Indian IT. Anand Mahindra stepped into the conversation to offer a more measured view, suggesting that while AI will pressure service providers, it may also make the most capable firms more central than ever.

The Indian IT index is down about 20% in one month and many IT stocks fallen to multi-year lows.

Mahindra responded to the Citrini's thought experiment, as mentioned in the report, and acknowledged the rigour and creativity of the scenario but emphasised the difference between a scenario and a prediction. He pointed out that markets are attempting to price uncertainty, which explains the volatility, and stressed that AI’s rise doesn’t necessarily signal the end of IT services.


The business tycoon quoted Mark Twain's saying, “Reports of my death are greatly exaggerated.” He further elaborated on how AI could reshape the industry: efficiency gains, cost optimisation, and a shift from effort-based pricing to outcome-focused delivery will become critical. Yet he highlighted that enterprises will still need secure data foundations, seamless integration across legacy and cloud systems, compliance oversight, and mission-critical reliability. Especially for medium and large organisations, these challenges remain complex and high-stakes, creating opportunities for IT firms that can orchestrate AI and deliver measurable outcomes, he said.



Mahindra suggested that the differentiator going forward will be the ability to manage risk and deliver “Scale at Speed,” rather than simply supplying manpower. IT services firms that pivot decisively toward AI orchestration and outcome-driven models will not only survive but remain extremely relevant in the evolving tech landscape, he said.

Tech Mahindra is a group company of Mahindra group.

At Infosys' recent Investor AI Day 2026, Nandan Nilekani said artificial intelligence presents a big “opportunity" , arguing that the real issue is how effectively enterprises deploy the technology. Technological disruption has accelerated over the past six decades, he noted, but IT services companies have consistently adapted. The bigger challenge now is a “deployment gap” — technology is advancing faster than organisations can implement it. AI adoption requires deep organisational change, and as AI spending rises, the advantage is shifting from buying solutions to building them, benefiting firms that engineer custom systems.

Netizens react

Netizens have been quick to weigh in on the AI debate and its impact on Indian IT. Many argue that AI won’t eliminate the industry but will disrupt low-value, repetitive billing models. Firms that survive will be those that combine AI with domain expertise, compliance, and scale, moving from cost arbitrage to capability leadership. The focus shifts from replacing manpower to controlling the AI stack for enterprises.

Others highlight that individuals and employees who adapt as “smart AI operators” will thrive, while those who resist change may fade. Many praised Anand Mahindra’s perspective, noting that enterprise complexity isn’t going away—success depends on how quickly IT incumbents pivot toward AI orchestration before larger tech players dominate the space.