Artificial intelligence has moved beyond experimentation at Infosys, now contributing 5.5% of the Indian tech giant’s quarterly revenue as the company transitions from small-scale pilots to full-scale enterprise deployments. CEO Salil Parekh revealed the milestone during the company’s recent Investors AI meeting, highlighting how AI services have become a core driver of business growth.
Parekh emphasized that AI work is no longer confined to isolated test projects. The company is actively delivering AI programs to 90% of its top 200 clients, indicating widespread adoption across its largest accounts. AI-led services now represent a substantial and rapidly expanding portion of Infosys’ business operations, with the CEO describing the growth trajectory as robust and dynamic.
With third-quarter revenue reaching Rs 45,479 crore, the 5.5% contribution from AI translates to significant business impact. This figure positions Infosys competitively within the industry. Tata Consultancy Services previously disclosed that its AI services generate approximately $1.8 billion annually, representing nearly 6% of total revenue.
Six Growth Areas Driving AI Expansion
Parekh outlined six key domains where Infosys expects continued AI service growth. These include AI strategy and engineering, enterprise data readiness, process transformation, legacy modernization, and physical AI. The strategy and engineering segment focuses on strategic work, with the company helping clients build and orchestrate AI agents across multiple platforms.
Customer service emerged as one of the most significant opportunities. Parekh noted that the business case for AI in customer service is driving fundamental changes in process design and execution. The demand for AI-powered customer interactions is reshaping how organizations approach client engagement.
Legacy system modernization represents another massive opportunity for the company. Infosys is working with large organizations to migrate away from outdated technology landscapes toward modern, AI-enabled infrastructure. This transformation work combines technical expertise with strategic planning to deliver long-term value for enterprise clients.
Balancing Opportunity with Industry Disruption
While acknowledging the enormous potential, Parekh also recognized that AI will fundamentally alter the economics of IT services. Industry estimates suggest the AI market could reach $300 to $400 billion by 2030, presenting substantial growth prospects. However, AI-driven productivity gains simultaneously create compression in traditional IT services, potentially reducing labor-intensive work.
Despite these challenges, Parekh expressed confidence that growth opportunities will outweigh the impact of productivity-related compression. The company maintains a clear perspective that the market opportunity remains massive and will serve as the primary driver of growth in coming years.
Workforce Investment for AI Future
To support its AI transformation, Infosys is making substantial investments in talent development. The company recruited 20,000 college graduates this year and plans to hire an additional 20,000 in the next financial year. This hiring strategy reflects the company’s commitment to building capabilities that can deliver increasingly complex AI solutions to enterprise clients.
The workforce expansion also signals confidence in sustained demand for AI services. By bringing in fresh talent and training them in AI technologies, Infosys is positioning itself to capture a larger share of the growing market while managing the transition from traditional IT services to AI-enhanced offerings.
The disclosure of AI’s revenue contribution marks a rare moment of transparency in an industry where companies typically avoid breaking out specific service line performance. As the technology sector grapples with both the opportunities and disruptions created by artificial intelligence, Infosys’ willingness to share concrete figures provides insight into how major IT services firms are navigating this transformation.
