BENGALURU: Artificial intelligence now accounts for 5.5% of quarterly revenue at Infosys, marking a clear shift from pilot projects to scaled enterprise work, chief executive officer Salil Parekh said.
Speaking at the company's Investors AI meet, Parekh said Infosys is already delivering AI programmes across most of its major accounts.
“Today, we are doing AI work for 90% of our large 200 clients. So this is not something which is just here and there in pilots. In terms of the scale, it's across many things. It's small and large parts of large programs with large clients.”
He added that AI-led services represented a growing share of the company’s business.
“This for us today represents 5.5% of our revenue in Q3, and it's growing at a robust pace. And this is something which is extremely dynamic. It is something that is working extremely well with our clients.”
Infosys posted third-quarter revenue of Rs 45,479 crore. Tata Consultancy Services had said its AI services generate about $1.8 billion annually, nearly 6% of total revenue.
Further, Parekh outlined six areas where Infosys sees growth in AI services. These include AI strategy and engineering, enterprise data readiness, process transformation, legacy modernisation, and physical AI.
“First, AI strategy and engineering. This is really the area where we do a lot of strategic work,” he said, adding that the company is helping clients build and orchestrate AI agents across platforms.
He highlighted customer service and legacy systems as major areas of opportunity.
“One of the biggest areas we see here, of course, is customer service. And the customer service business case is driving a huge change in how processes are gonna change with the AI world.”
On legacy systems, he said, “This is a massive, large opportunity that we are seeing in addition to customer service, one of the largest opportunities where we are essentially taking large legacy organisations… and bringing them away from the legacy landscape into the modern landscape.”
Parekh also acknowledged that AI will reshape the economics of IT services.
“There’s a huge opportunity,” he said, referring to an estimated 300 to 400 billion dollar market by 2030. “At the same time… AI productivity leads to compression in IT services.”
Despite this, he said the company believes the growth potential will outweigh the impact of productivity gains.
“Today we have a clear view that the opportunity is massive and large, and that will become the driving force of what we will grow and drive through in the coming years.”
Infosys is also investing in its workforce to support the shift. Parekh said the company recruited 20,000 college graduates this year and plans to hire another 20,000 in the next financial year.