“We have no update. The situation is the same as what we shared externally a few days ago,” Parekh said when asked if the company will take action on the matter, given the demand for back taxes dating back several years.
In an interview with PTI, Parekh said there is a huge customer uptake of generative AI and compared it to the adoption curve seen for digital technology and cloud technologies in the past.
Parekh believes that GenAI adoption will increase over time as businesses experience the benefits and business outcomes that arise from it.
“We think this will accelerate over time, but we’ll wait and see how it evolves. It’s a bit like when we started with digital or cloud a few years ago… these things start in a certain way… and then we see what benefits customers get. If they see that the benefits are substantial, there will be more and more adoption,” he said.
It is worth mentioning that Infosys, like its Indian and global peers, has been strengthening its bet on AI. Earlier this year, Infosys had said it was working on 225 generative AI programs for clients and that over 250,000 employees had been trained in generative AI areas. Parekh does not expect the arrival of GenAI to lead to any layoffs at the company. Even for businesses in general, GenAI is tackling newer areas, for example, by honing credit analytics that can enable a bank to expand its product offering, bringing new revenue opportunities and productivity benefits.
“So, at this stage, my feeling is that technology will help the business grow even more compared to anything else. We don’t see any layoffs at Infosys with these new generation technologies and in fact, we continue to increase our hiring as the economic environment changes… as you saw in the first quarter, we had strong quarter-on-quarter and year-on-year growth, we have a very good major deals victory number. And with that we increase our orientation.
“We see growth slowly coming back,” Parekh said.
Parekh noted that next-generation AI has become “very critical” and that clients are looking for ways to leverage large language models for business benefits in areas ranging from software development to customer services. Infosys is seeing significant benefits that clients can achieve from this, according to him.
“The third area is where customers have knowledge objects, whether it’s in, say, the credit department of a bank, or in a manufacturing company on product elements or what products to use, or in a telecom company on, say, the pricing of their software… anywhere where there are knowledge elements and objects and ways to leverage them more efficiently… generative AI becomes very useful,” Parekh said.
Infosys does not provide a specific breakdown of the revenue it receives from its work in generative AI. Parekh added that there has been a huge push for generative AI within Infosys, which is focused on becoming an AI-first entity.
Infosys has invested in and expanded its digital training program globally to include the latest courses on generative AI, and its latest annual report notes that the company’s platforms are now also enhanced with generative AI aspects.
Infosys’ bet on GenAI comes at a time when the meteoric rise of generative artificial intelligence globally has generated excitement.
According to Deloitte According to the 2024 Technology Trends Report released in April this year, GenAI is revolutionizing operations and improving customer experiences in sectors such as healthcare, retail, education, and agriculture.
India’s GenAI market is projected to achieve a compound annual growth rate (CAGR) of over 24.4 percent between 2023 and 2030, according to the Deloitte report, which also notes that India is poised to emerge as a global leader in AI innovation, leveraging GenAI to drive inclusive progress and sustainable development.
As such, businesses across various industries today are eager to use generative AI tools to solve business challenges, automate repetitive tasks, personalize customer interactions, make the most of sales and marketing efforts, code generation, and improve business and organizational efficiency.
In fact, Infosys Chairman Nandan Nilekani, in Infosys’ latest annual report, penned a note on “What’s Next for the Generative AI Revolution?” where the industry veteran emphasized that the generative AI revolution presents an “unparalleled opportunity” and the flux of change with the entire technological landscape being reset will create many big openings.
“We are in the second year of the generative AI revolution, and some clarity is starting to emerge from the noise and chatter of the past 18 months. The initial hyperventilation about AI ‘catastrophe’ and the risk of human extinction from AI breakthroughs like Artificial General Intelligence (AGI) has calmed down,” Nilekani wrote in Infosys’ annual report.
Today, Infosys’ work in AI and generative AI is available to its clients through Infosys Topaz.
The Bengaluru-based company is working on various client projects in software engineering, process optimization, customer support, advisory services, as well as sales and marketing.
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