Artificial intelligence is reshaping the global technology industry, but Anand Mahindra believes it will strengthen India’s IT services sector rather than replace it.
Speaking at Tech Mahindra’s 39th Annual General Meeting, the company’s chairman directly addressed growing concerns that AI could reduce demand for traditional IT services.
Instead of viewing AI as a threat, Mahindra argued that it will increase the need for companies that can help businesses adopt, integrate, and manage the technology.
His comments come as Indian IT firms face mounting pressure to prove how AI will create new growth opportunities rather than disrupt their existing business models.
Why Mahindra Believes AI Will Expand IT Services
Mahindra said most large enterprises still operate on legacy systems, fragmented data, complex regulations, and years of accumulated technical debt. Because of this, organizations cannot simply deploy AI and expect immediate results.
Successful AI adoption requires system integration, governance, security, customization, and ongoing management—all areas where IT service providers already have deep expertise.
Mahindra compared AI to the smartphone revolution, arguing that the real value did not come from the hardware itself but from the applications and services built around it.
He also rejected the idea that businesses must choose between people and AI. Instead, he described the future enterprise as one where human expertise works alongside AI to improve productivity and decision-making.
According to Mahindra, a company’s competitive advantage will increasingly come from its proprietary data, business processes, and industry knowledge rather than access to AI models, which are becoming widely available.
Why This Matters for India’s AI Ambitions
Mahindra extended the discussion beyond Tech Mahindra, arguing that India should become both a creator and trusted deployer of AI rather than simply a consumer of technologies developed elsewhere.
To illustrate the point, he referred to India’s development of the PARAM supercomputer after the country was denied access to U.S. Cray systems in the 1980s. He described this as an example of how limited access can drive domestic innovation, suggesting India should approach AI with the same determination.
His remarks also come at a significant time for the industry. Indian IT companies are adapting to changing client expectations as AI improves software development and automation.
At the same time, businesses still require experienced partners to modernize infrastructure, deploy AI responsibly, and meet regulatory requirements.
For Tech Mahindra, the message is also strategic. If enterprises continue investing in AI transformation, demand for consulting, integration, cybersecurity, cloud modernization, and AI governance could grow alongside the technology itself.
Mahindra’s view is that AI will change the nature of IT services, but it will also make them more important as organizations navigate the transition to AI-powered operations.
Source: Moneycontrol, "AI Won't Diminish IT Services, Tech Mahindra Provides the Enabling Layer: Anand Mahindra"
