The next phase of the artificial intelligence investment cycle could work in favour of Indian IT services companies, with global technology spending expected to move towards enterprise-level AI deployment after a period focused largely on building infrastructure, according to an Anand Rathi sector report.

Brokers expect this change in spending priorities to bring back technology work that has remained delayed in recent years. It added that the next stage of AI adoption is likely to be driven more

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The Shift Towards Enterprise-Level AI Deployment

The focus on returns is also increasing among global technology companies that have made large investments in AI infrastructure. Pricing pressure arising from AI, weak global economic conditions and automation affecting lower-end IT services could weigh on companies before they are able to move towards higher-value AI work.

Enterprises would need services for data preparation, system integration and governance, while legacy systems would require upgrades. This could create opportunities for IT services companies in AI deployment, data optimisation and AI operations.

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Key Highlights

• Global technology spending expected to move towards enterprise-level AI deployment.
• Opportunities for Indian IT services companies as technology work that has remained delayed is brought back.
• Nex stage of AI adoption likely driven