The recent AI disruption has significantly impacted the global tech sector, particularly affecting software and services stocks. VK Mathews, founder-chairman of IBS Software Services, discusses the implications for Indian IT in an interview with Anees Hussain. Despite skepticism about AI investments—estimated at over $520 billion this year—Mathews believes AI will not spell the end for Indian IT but will necessitate a strategic shift. He notes that companies must enhance value by offering more than just labor efficiency. While many jobs may evolve with technology, employment levels are expected to remain stable. Regarding pricing pressures, IBS Software foresees continual growth as airline passenger numbers rise, despite a decline in net profits due to AI investments. The focus is on improving operations and maximizing productivity through AI, positioning the company for a stronger financial performance in the future. Staying competitive will require Indian IT firms to adapt quickly to these technological advances.
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