Infosys deploys AI to help clients pocket up to 40% savings
More clients are embracing full-scale AI shifts, moving beyond isolated use cases, with AI agents playing a key role, Infosys CEO Parekh said
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Infosys Ltd, India’s second largest IT services firm, is doubling down on artificial intelligence (AI) as clients look to trim costs and drive transformation, with chief executive officer Salil Parekh saying AI-led projects are delivering savings of 20% to 40% in some customer service programs.
“We are seeing growing demand from clients to partner with them on AI. They are moving from a use case-based approach to an AI-led transformational approach with AI agents playing a critical role,” Parekh said during the company’s earnings call for the January-to-March quarter of FY25.
While pricing discussions vary, AI is now embedded in almost all new deal conversations and often complements broader automation and cost-efficiency initiatives, he added.
The company is deploying Infosys Topaz—its suite of generative and agent AI-powered solutions—across diverse functions such as engineering, customer service, cybersecurity, employee productivity, and process improvement.
One large US financial services client is using Infosys’s conversational AI to deliver hyperpersonalized customer experiences with over 80% accuracy. Another project with a European client involves automating 70% of its processes through an AI-first transformation.
Parekh said the company is also executing new AI projects in credit risk and telecom platform services.
To further its capabilities, Infosys continues to expand strategically with acquisitions in US-based energy consulting and Australian cybersecurity, as well as a new partner joining its Japan joint venture.
Infosys chief financial officer Jayesh Sanghrajka said the company signed 12 large deals each in the US and Europe last quarter.
Financial services clients, particularly in capital markets and payments, are increasing investments in AI-led compliance and risk mitigation, despite flat overall budgets, Sanghrajka said.
Manufacturing growth remains robust though spends are expected to be flat or lower in CY25 due to global uncertainties, he added.
Parekh emphasized that AI is unlocking new revenue opportunities but cautioned that client expectations on benefits sometimes exceed what is realizable.
The Infosys CEO also anticipates AI-related spends to be more centralized within client organizations going forward, evolving from distributed pilots to enterprise-level initiatives.
Despite the AI momentum, Infosys guided for FY26 constant currency revenue growth of just 0% to 3%, citing macro uncertainty. Margin guidance stood at 20% to 22%.
