AI Threat to Indian IT: Real but Overblown Doom Narrative

• Indian IT services stocks face pessimism due to AI's impact on traditional business models.
• AI will change Indian IT by improving productivity and moderating hiring growth, but not necessarily lead to decline.
• AI creates new opportunities for Indian IT firms in data cleaning, system upgrades, cloud migration, and workflow redesign.
• Companies like Infosys and HCLTech are actively pursuing AI partnerships, training employees, and integrating AI into services.
• While hiring growth may slow and margins face pressure, the sector is adapting to higher-value AI transformation mandates.