Infosys Executive Says AI Ramp-Up Could Be Delayed Because of Cost Concerns

(CTN News) – According to a top Infosys executive, clients are eager to use artificial intelligence, but cost concerns are hindering their adoption of the technology.

It is important to consider the return on investment, since this technology, unlike the others, has a high cost,” said Satish HC, executive vice-president and co-head of delivery at India’s second largest software company.

Over the past few years, clients have focused on projects Infosys that reduce costs. Currently, Satish stated that budgets are being consumed by “absolutely essential” requirements, such as resiliency to cyberattacks, which may delay the scaling up of artificial intelligence.

Satish noted that some of these priorities may slow down the pace at which organizations move forward.

In the year ending March 2024, the Indian information technology sector is expected to grow by a modest 3.8% to $253.9 billion, as clients reduce spending and delay decision-making due to inflationary pressures and uncertainty around the world.

Some companies may not be ready for the scale-up of AI because they are not data-ready, while others are adopting the technology rapidly as a result of the greater opportunities it provides, he stated.

However, Infosys maintains an optimistic outlook regarding its investment in this technological advancement.

“At Infosys, I do not believe we were digital first… it took us a few years to adapt to digital, but now that we have hindsight, we are adapting much better to AI, and I believe we will be going AI first.”.

In contrast to 2023, which he described as a “sliding slope,” 2024 could be a year in which the Infosys foundations for the future are laid, he stated.

The Indian artificial intelligence market is predicted to reach $17 billion by 2027, growing at an annual rate of 25-35% between 2024 and 2027, according to Nasscom and BCG.

In my opinion, you can lay a lot of foundations for acceleration this year. That’s why I refer to it as a bridge year,” he commented, adding that he does not anticipate clients to splurge.

According to Satish, “I do not anticipate that this will significantly change because half the world will be voting this year.”

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