To AI or not no longer a question: IT majors already using GenAI for several tasks

In the June earnings announcements, major Indian IT CEOs emphasized the growing significance of generative AI (GenAI) in their strategies. As per a ToI report, companies are already integrating GenAI to expedite code generation, optimize labor-intensive tasks, and facilitate system integration. However, analysts anticipate that widespread enterprise adoption of GenAI is still a few quarters away.

Indian IT firms are reportedly taking measures to establish advisory councils and GenAI centers of excellence to develop solution suites with cloud providers. Multinational corporations like Accenture have already secured substantial contracts for GenAI implementation, partnering with Nvidia and ServiceNow for enterprise GenAI capabilities.

As per the report, TCS is actively working on more than 50 proofs of concept (PoCs) and has over 100 GenAI opportunities in their pipeline. Their CEO, K Krithivasan, revealed a pilot project aimed at revolutionizing customer service using GenAI for a global provider of travel insurance and assistance.


Infosys CEO, Salil Parekh, disclosed that the company is engaged in 80 GenAI projects, focusing on large language models for software development, text, document, voice, and video. Infosys has provided training in this area to 40,000 employees.

Experts predict that GenAI's impact on the market will initially be seen through extensions like Salesforce's Einstein or Microsoft's Copilot, likely starting in the third quarter of this year. While GenAI has the potential to enhance productivity and generate efficiency gains, its long-term impact on IT services spending may lead to 2-3% revenue deflation in the industry during a three-year transition period.

Despite the promising prospects of GenAI, clients are expected to invest not only in GenAI technology itself but also in services that can leverage GenAI for further efficiency gains. The adoption of GenAI is predicted to start monetizing in a few quarters, with early adopters primarily in financial services, manufacturing, and healthcare sectors.