Infosys AI Services Could Reach 50% of Work in 2–3 Years: CEO Salil Parekh

Key Takeaways

• AI could approach 50% of Infosys’ work: CEO Salil Parekh expects AI services to account for nearly half of the company’s work within two to three years if current growth continues.
• Rapid near-term expansion: Parekh said AI could represent 20%–30% of Infosys’ work within a few quarters.
• More than 8% of quarterly revenue: AI services accounted for over 8% of revenue in the latest reported quarter, according to Parekh’s remarks.
• Three major service areas: The business includes AI agents, AI-assisted coding and modernisation of legacy technology.
• Hiring continues: Infosys hired 20,000 college graduates in the previous year and plans to hire another 20,000 in the current financial year.
• Employees are being reskilled: Around 80,000 of Infosys’ approximately 300,000 employees are already working with coding tools for clients or internal projects.
• Infrastructure remains a challenge: Energy availability, data-centre capacity and the cost of running AI systems could affect how quickly adoption expands.

Infosys Expects AI Services to Become a Major Part of Its Business

Infosys CEO and Managing Director Salil Parekh expects artificial intelligence services to transform the company’s business over the next two to three years. Speaking at the Bloomberg New Economy Forum 2026, he said AI services could account for almost half of Infosys’ work if the current pace of growth continues.

The projection reflects the growing demand from large companies seeking to incorporate AI into software development, business processes and technology infrastructure. Rather than treating AI as a standalone product category, Infosys is increasingly providing services that help customers build, deploy and manage AI-enabled systems.

Parekh said AI services could account for 20%–30% of Infosys’ work within a few quarters, potentially approaching 50% over the following two to three years. These figures are forward-looking estimates, not confirmed targets or guaranteed outcomes.

The distinction between the amount of work and the share of revenue is important. Parekh’s headline projection concerns the proportion of Infosys’ work that could involve AI services. The company has separately reported that AI services contributed more than 8% of revenue in the latest quarter discussed in his remarks.

The two measures are related, but they are not interchangeable. Different services can carry different prices, delivery costs and revenue-recognition patterns. A larger share of AI-related work does not automatically mean that AI will contribute exactly the same share of revenue.

Nevertheless, the forecast indicates how quickly the company expects its service mix to change as enterprise customers move from experimenting with AI to deploying it across more of their operations.

What Counts as AI Services at Infosys?

Infosys’ AI services business covers several types of work rather than a single product or technology. The company helps clients adopt AI, integrate it with existing systems and adapt their operating processes to use it effectively.

Three areas featured prominently in Parekh’s remarks: AI agents, coding-related services and legacy modernisation.

1. Building AI agents for businesses

AI agents are systems designed to carry out tasks through a combination of reasoning, tool use and interaction with business software. Depending on their permissions and design, they can retrieve information, prepare documents, analyse data or execute parts of a workflow.

For enterprises, the attraction is the possibility of automating repetitive activities and connecting different software systems.

For example, a business might use an AI agent to gather information from internal documents, prepare a report, identify missing data and route a request to the appropriate employee. More advanced implementations may perform several connected tasks while following defined rules and approval procedures.

Building these systems requires more than connecting a model to an application. Businesses need reliable data, suitable software integrations, security controls, monitoring and clear rules about when a human must approve an action.

This creates opportunities for IT services companies such as Infosys, which already work with enterprise systems and understand clients’ operational requirements.

2. AI-assisted coding and software development

AI coding tools can help developers generate code, explain unfamiliar systems, write tests, identify potential defects and document software.

These capabilities can reduce the time required for some programming tasks. They can also help developers navigate large codebases and modernise applications that have accumulated years of technical complexity.

However, AI-generated code still requires review, testing and security checks. A system that produces code quickly does not necessarily produce software that is reliable, maintainable or suitable for production.

For Infosys, the opportunity is to incorporate AI into the software development lifecycle while continuing to provide architecture, integration, testing and quality assurance services.

The commercial model may change as well. If a client can complete certain coding tasks with fewer hours of manual effort, service providers may need to demonstrate value through faster delivery, improved quality, greater automation or broader business outcomes rather than relying solely on the number of employees assigned to a project.

3. Modernising legacy technology

Many large companies continue to operate applications built on older programming languages, databases and infrastructure. Replacing these systems can be expensive and risky because they often support critical business operations.

AI tools may help teams understand older code, generate documentation, identify dependencies, translate portions of applications and assist with testing during modernisation projects.

This is an important opportunity because enterprises cannot simply replace every legacy system with a new AI application. They must preserve essential business functions while upgrading technology in stages.

Infosys can combine its existing consulting and engineering expertise with AI tools to help clients modernise these systems. The potential value comes from reducing the effort required for complex projects while maintaining the reliability and security of the underlying infrastructure.

Legacy modernisation could therefore remain a significant service category even as AI automates parts of traditional software development.

How Fast Could AI Services Grow at Infosys?

Parekh’s remarks provide two milestones for the potential expansion of AI-related work.

Indicator	Reported position or projection
AI services’ share of revenue	More than 8% in the latest quarter discussed
Near-term share of work	20%–30% within a few quarters, if growth continues
Longer-term share of work	Nearly 50% within two to three years
AI services growth	Double-digit sequential growth, according to Parekh
Employees working with coding tools	Approximately 80,000
Total workforce	Approximately 300,000

Source: Statements by Infosys CEO Salil Parekh reported by The Economic Times and PTI on October 13, 2026. Revenue contribution and share of work refer to different measures.

The near-term estimate is particularly significant because it suggests that AI-related work could become a much larger part of the company’s delivery model within a relatively short period.

However, extrapolating rapid growth over several quarters is uncertain. Enterprise AI projects can move from pilots to production at different speeds, and customers may delay deployments because of security, regulatory, integration or budget constraints.

The pace will also depend on whether companies can demonstrate measurable returns from AI investments. Businesses may be willing to experiment with new tools, but large-scale adoption typically requires evidence that the technology improves productivity, quality, customer service or operating costs.

For Infosys, the challenge will be to turn growing interest into repeatable services that can be delivered profitably across a broad customer base.

Infosys Continues Hiring While Expanding AI Capabilities

One of the notable aspects of Parekh’s comments is that Infosys is continuing to recruit graduates while expanding its use of AI.

The company hired 20,000 college graduates in the previous year and plans to hire another 20,000 in the current financial year, according to his remarks.

Parekh said these graduates are trained in AI and subsequently work with clients to deploy the technology and manage organisational change.

He also said around 80,000 employees out of a workforce of approximately 300,000 are already working with coding tools on client projects and internal initiatives.

These figures suggest that Infosys is pursuing a combination of technology adoption, workforce training and recruitment rather than relying exclusively on reductions in headcount to respond to AI.

Why AI adoption still requires people

Deploying AI inside a large organisation involves much more than providing access to a model.

Companies must determine which tasks should be automated, whether their data is suitable, how AI systems will connect to existing applications and who will be accountable when something goes wrong.

They also need to train employees, redesign processes and help teams adapt to new ways of working.

For example, an AI coding assistant may generate a function, but developers still need to check its behaviour and ensure that it meets the project’s security and performance requirements. Similarly, an AI agent may prepare a business recommendation, but employees may need to validate the underlying information before acting on it.

This creates demand for skills in AI integration, data engineering, cybersecurity, quality assurance, governance and change management.

Infosys’ hiring and training plans indicate that it expects people to remain important in delivering AI transformation, even as tools automate parts of the work.

What Does This Mean for Jobs in India’s IT Industry?

The expansion of AI services raises a difficult question for India’s IT sector: will AI create more work for technology companies, or reduce the number of people required to deliver existing projects?

The likely outcome will vary by task, role and business model.

AI can automate portions of coding, documentation, testing and routine analysis. When these activities require fewer hours, clients may need fewer resources for certain types of work or may expect service providers to deliver projects at lower costs.

At the same time, easier and cheaper software development could encourage companies to undertake projects that were previously too expensive or complicated. Organisations may also need additional support with AI integration, security, data preparation and ongoing system management.

The net effect on employment will depend on how these forces balance out.

Entry-level roles may change

Junior technology workers often begin with tasks such as writing straightforward code, preparing test cases, documenting systems and resolving basic issues. AI tools can now assist with several of these activities.

That does not mean every entry-level role will disappear, but the skills required may change. Employers may place greater emphasis on problem-solving, understanding business requirements, reviewing AI output and working effectively with automated tools.

Graduate training programmes could therefore become more important. New employees may need to learn how to use AI tools safely and productively while developing a strong understanding of software fundamentals.

Demand for specialised skills could rise

AI adoption also creates demand for professionals who can build and manage systems around the models themselves.

Relevant areas include Python programming, cloud infrastructure, data engineering, API integration, AI application development, cybersecurity and AI governance.

For Indian IT services companies, the opportunity is not simply to replace existing work with AI. It is also to help clients redesign systems and business processes around the technology.

However, reskilling takes time, and demand will not rise uniformly across every role. Workers will need to adapt as employers change how projects are priced, staffed and delivered.

Why AI Services Could Reshape Infosys’ Revenue Model

Traditional IT services often involve long-term contracts covering software development, maintenance, consulting and technology support. Some contracts are priced according to the number of people or hours required to perform the work.

AI can change this equation by reducing the time needed for certain tasks. If a service provider can deliver the same outcome with fewer hours, a model based entirely on billing for labour may face pressure.

Companies such as Infosys will need to demonstrate the value of their services through faster delivery, improved business outcomes, specialised expertise and the ability to deploy AI reliably at enterprise scale.

AI transformation projects may also create new categories of work. Businesses need help selecting tools, integrating them into existing systems, securing data, monitoring model performance and managing changes to employee workflows.

These requirements could support demand for consulting and engineering services even if individual development tasks become more automated.

The effect on profitability will depend on how service providers price AI projects, how much they spend on technology and training, and whether productivity improvements exceed the costs of delivering the new services.

A rising AI workload is therefore not, by itself, proof of higher margins or faster overall revenue growth.

Infrastructure and Energy Could Limit AI Expansion

AI adoption requires computing capacity, data-centre infrastructure, electricity and network connectivity. As companies deploy more demanding AI workloads, these requirements can become significant operational constraints.

At the Bloomberg New Economy Forum, Parekh also highlighted infrastructure and energy-related challenges associated with the expansion of AI.

Data centres require reliable power and cooling systems, and advanced AI workloads can consume substantial computing resources. If infrastructure capacity is insufficient or expensive, it can affect the cost and speed of deploying AI services.

These challenges matter to IT services providers because their ability to deliver AI projects depends partly on the infrastructure available to clients and technology partners.

Businesses must also consider where their data is stored, which models they can use and whether their systems comply with industry-specific rules.

The result is that enterprise AI adoption is unlikely to depend only on the quality of AI models. It will also require investment in infrastructure, governance and the systems needed to operate the technology at scale.

What Infosys’ Forecast Means for India’s IT Services Industry

Infosys’ projection reflects a wider transition in India’s technology services sector.

Indian IT companies have traditionally supported global businesses with application development, maintenance, consulting and large-scale technology operations. AI is changing how some of these services are delivered while creating demand for new forms of implementation and integration work.

If enterprises expand AI adoption, service providers may benefit from projects involving agent development, workflow automation, legacy modernisation, data infrastructure and AI governance.

The opportunity is not limited to companies building their own foundation models. Businesses also need specialists who can integrate commercially available models into complex systems and ensure that they work reliably.

India’s established IT services industry has experience in enterprise delivery, global client relationships and large-scale engineering teams. These capabilities could help companies compete for AI transformation projects.

Nevertheless, competition is increasing. Technology companies, cloud providers, specialist AI firms and internal enterprise teams are all seeking to capture parts of this market.

Infosys will need to demonstrate that it can deliver measurable results while adapting its workforce, pricing models and technology capabilities to changing customer expectations.

The Bigger Picture

Parekh’s projection signals that AI could become a core part of Infosys’ service delivery rather than a specialised offering used in selected projects. The combination of AI agents, coding tools and legacy modernisation could reshape the company’s work mix, creating opportunities for new services while putting pressure on traditional labour-intensive activities.

The forecast is also a reminder that rapid adoption does not guarantee a particular financial outcome. Revenue growth, profitability and employment will depend on customer demand, pricing, productivity gains and the ability of workers to develop relevant skills.

Looking Ahead

The next indicators to watch are Infosys’ reported AI revenue contribution, the pace of enterprise deployments, changes in service pricing and the company’s hiring and training figures. These measures will help show whether the projected increase in AI-related work is translating into sustained commercial growth.

Over the next two to three years, the critical test will be whether Infosys can combine AI productivity with new customer demand while maintaining quality, profitability and a skilled workforce. Reaching nearly half of its work in AI-related services would represent a substantial transformation, but the projection remains dependent on current growth trends continuing.

Frequently Asked Questions

1. What did Infosys CEO Salil Parekh say about AI services?

Parekh said AI services could account for nearly half of Infosys’ work within two to three years. He also suggested that the share could reach 20%–30% within a few quarters if current growth continues.

2. How much revenue does AI contribute to Infosys?

Parekh said AI services accounted for more than 8% of revenue in the latest quarter discussed in his remarks. This is a revenue measure and should not be confused with his projection that AI could represent nearly half of the company’s work.

3. What AI services does Infosys provide?

The areas highlighted include building AI agents, AI-assisted coding and modernising legacy technology. Related work can also involve integration, data preparation, security, governance and change management.

4. Is Infosys reducing hiring because of AI?

Parekh said Infosys hired 20,000 college graduates in the previous year and plans to hire another 20,000 in the current financial year. These figures indicate continued hiring, although they do not establish how AI will affect employment in every role.

5. How many Infosys employees are working with coding tools?

Parekh said approximately 80,000 employees out of a workforce of around 300,000 are working with coding tools on client or internal projects.

6. Will AI eliminate jobs in India’s IT industry?

AI is likely to automate some tasks and change the skills required for others. The overall employment impact will depend on how much existing work is automated, whether lower costs generate additional demand and how effectively workers transition into new roles.