‘AI deflation’ comes to India’s tech services giants and puts downward pressure on revenue
India's major tech services companies are experiencing revenue pressures attributed to 'AI deflation.' While some firms report modest revenue growth, they anticipate future declines due to the impact of artificial intelligence on their business models. Despite these challenges, the companies are optimistic about leveraging AI to enhance productivity and drive future growth.
- ▪HCL reported an annual revenue growth of 11.2 percent but expects a future revenue dip of 3 to 5 percent due to AI deflation.
- ▪Infosys anticipates continued growth this year despite acknowledging the potential impact of deflation.
- ▪TCS experienced a 0.5 percent decline in annual revenue and referred to the situation as 'degrowth.'
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| Publication time | 2026-04-28T05:34:57.00Z |
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Opening excerpt (first ~120 words) tap to expand
(function() { let windowUrl = window.location.href; windowUrl = windowUrl.substring(windowUrl.indexOf('?') + 1); let messageElement = document.querySelector('.shareableMessage'); if (windowUrl && windowUrl.includes('code') && windowUrl.includes('expires')) { messageElement.style.display = 'block'; } })(); AI + ML ‘AI deflation’ comes to India’s tech services giants and puts downward pressure on revenue Headcounts, however, are mostly holding up Simon Sharwood Simon Sharwood Published tue 28 Apr 2026 // 06:34 UTC AI is beginning to make a dent in the business models of India’s big four technology services giants Infosys, HCL, TCS, and Wipro have all announced quarterly results in the last ten days, and all had mixed news.
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