Tracking the AI Disruption: Impact and Benefits for Businesses

Knowledge Series
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Vishal Sikka expects a margin squeeze for IT companies but is also hopeful that if cos can modernize their legacy contracts along with new AI deals they will continue doing well (TCS and Infy have managed well so far)

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This article highlights how ill prepared our economical & political systems are to an era of Artificial general intelligence.

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Just putting my random thoughts:

Recent Anti-AI News.

  1. Uber reportedly exhausted its entire 2026 AI budget in just four months due to heavy spending on AI coding tools and tokens.

  2. Sam Altman admitted fears of a near-term “jobs apocalypse” from AI were overstated and said the “human part” of jobs remains irreplaceable.

  3. Microsoft reportedly told many employees to stop using Claude Code by June 30, 2026. One major reason appears to be cost.

  4. Klarna CEO admitted replacing customer support staff with AI reduced service quality, saying cost savings became “too predominant.” He does not think most companies should replace software like Salesforce with AI.

Is this suggest something changes?..

  1. Company specific news:
    Snowflake – pre-market shares are up 35%.

The market was previously worried about “SaaSpocalypse” and AI hurting SaaS companies. But Snowflake’s results suggested:
“AI may actually increase demand for data platforms instead of killing them.”

All Indian IT companies like TCS and Infosys are elite partners of Snowflake — they implement Snowflake data services with their clients.

Will this translate to reversal of trend of software and Indian IT companies?

As per me the answer is NO - not yet.

Reason:
Snowflake is considered as could infrastructure company. Indian IT, Accenture, servicenow is considered as software or IT companies.

BUT, next is reversal of reversal trends for ServiceNow, Salesforce, Accenture, Cognizant, Infosys, etc. Possible? Need to wait for market signals, what’s your opinion?

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In my opinion, Indian IT services industry will have a big role to play in percolating the technology down to enterprises. The sector as a whole should recover, it’s a matter of time. But which companies within it do well only time will tell. Logically, companies that are agile and adaptable should have an advantage.

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We discussed ServiceNow, Accenture, Cognizant, and Salesforce. Yesterday’s moves were notable: NOW +14%, CRM +8%, ACN +5%, and CTSH +3.5%.
Maybe I’m biased, but it does feel like sentiment is beginning to shift.