Infosys Sees AI Driving Half Its Work Within Three Years
CEO Salil Parekh says AI services already generate more than 8% of revenue, while rising infrastructure costs remain a longer-term risk.
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Infosys Ltd expects artificial intelligence services to account for almost half of its work within two to three years if current growth continues, Chief Executive Salil Parekh said at the Bloomberg New Economy Forum on Tuesday.
AI services generated more than 8% of Infosys’ revenue last quarter and are growing at a double-digit sequential rate. Parekh said that pace could lift their share of the firm’s work to 20% to 30% within a few quarters.
“It is growing at a fantastic pace. If you sort of extrapolate that by a few quarters, you already start to see that’s 20-30 per cent of our work in a few quarters, and maybe in two or three years, almost half of our work,” Parekh said.
The firm is building AI agents for clients, using AI in software development and helping businesses modernize older technology. Parekh said demand remained strong as companies increased their use of AI.
Infosys is also continuing to recruit graduates despite concerns over AI’s impact on entry-level technology jobs. The company hired 20,000 college graduates last year and plans to recruit another 20,000 this fiscal year, Parekh said. New hires are being trained in AI before working on client deployments and technology transformation projects.
Around 80,000 of Infosys’ roughly 300,000 employees are already using coding tools for client and internal work.
Parekh said clients are also examining whether cheaper tokens, older models or open-weight alternatives can deliver similar results as AI usage increases.
He flagged risks from the infrastructure needed to support that demand, including costly chips, constrained supply and uncertainty over the long-term value of current data-center investments if inference costs fall sharply.
“Today the demand is fantastic, but these are some of the risks that could play out,” Parekh said, adding that the effects may become clearer over the next five to 10 years.
He also pointed to data-sovereignty requirements and possible resistance to rapid infrastructure expansion as factors that could shape future investment.
