Infosys Chairman Calls AI Shift a “Root-and-Branch” Change at Investor Day
Bengaluru, February 17: Nandan Nilekani, Co-founder and Chairman of Infosys, said on Tuesday that artificial intelligence will fundamentally alter how software is built and deployed, marking a structural shift in the technology industry.Speaking at Infosys’ Investor Day, Nilekani described the ongoing AI transition as a “root-and-branch” transformation that goes far beyond adding another layer of technology. He said companies must rethink customer journeys, business processes, and organizational structures to adapt effectively.
According to him, writing code will no longer remain the primary goal for technology professionals. Instead, the focus will shift toward making AI systems function efficiently and reliably within enterprise environments.
From Coding to AI Engineering and Agent Orchestration
Nilekani said the nature of technology jobs and operating models will undergo significant change. Enterprises will need to build capabilities in AI engineering, agent orchestration, and managing non-deterministic systems, where the same prompt may produce different outcomes each time.He emphasized that talent will have to evolve to operate in a world where deploying and managing AI systems becomes more important than conventional programming.
Legacy Systems and Technical Debt in Focus
The Infosys Chairman cautioned that companies will face pressure to address long-standing structural issues, including legacy systems and technical debt, which could restrict effective AI adoption.He noted that while AI models are advancing rapidly, implementation across enterprises remains challenging. According to him, the gap lies not in technological capability but in deployment complexity.
“The technology is far ahead of its deployment. Model performance is going up, but progress in implementing is not really there because implementing this is hard stuff. Fundamentally, it’s about organizational change, business change, retraining your people, changing your data so it’s no longer in silos,” Nilekani said.
AI Concerns Trigger Volatility in Nifty IT Index
Nilekani’s remarks come at a time when the technology sector has witnessed heightened volatility. The Nifty IT index fell 5.51 per cent in a single session last week amid concerns that AI-led disruption could impact traditional revenue streams of Indian IT services companies.Investor anxiety intensified after US-based AI firm Anthropic launched “Claude Cowork,” an AI assistant equipped with a new automation layer. The product introduction raised concerns about potential displacement of conventional IT services.
International broker Jefferies described the launch and the resulting turbulence in NASDAQ as “SaaSpocalypse.” Some strategists warned that agentic AI could lead to revenue deflation of up to 40 per cent in segments already facing margin pressure.
As AI capabilities accelerate, Nilekani’s comments underscore that the industry’s challenge lies not just in technological advancement, but in structural reinvention.
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