AI volumes may outweigh revenue deflation for IT sector by FY30: Report
Artificial intelligence (AI) could become a net growth driver for India’s IT services industry over the longer term, with AI-led volumes potentially outweighing revenue pressure from automation by FY30, according to a report by CLSA. The report further warned that near-term growth remains constrained by weak macroeconomic conditions and softer discretionary demand. CLSA said the industry is facing “multiple macro/micro headwinds”, but expects AI to eventually create new growth opportunities. It said AI could initially compress revenues as productivity gains are passed on to clients, but “AI volumes could supersede deflation by FY30.”
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AI volumes may outweigh revenue deflation for IT sector by FY30: Report Why it matters: Research is moving the AI stack right now, and this update helps explain what changed for builders. Source: Telecomliveweb https://a2zai.ai/bytes/ai-volumes-may-outweigh-revenue-deflation...
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