AI disruption is unlikely to derail the Indian IT industry, with mid-cap technology companies potentially better placed to benefit as businesses adopt artificial intelligence (AI), according to Srinivas Rao Ravuri, Chief Investment Officer at Bajaj Life Insurance.
He said mid-cap IT companies can move faster and see a more tangible impact from AI-related business than their larger peers.
“Individuals can just adopt AI and use and be happy with whatever AI is giving them, but when it comes to corporates adopting AI, it can’t be done that way,” Ravuri said.
He said companies need help integrating AI with existing enterprise systems, while also addressing security and data verification.
Ravuri said the opportunity is particularly relevant for mid-cap IT companies because AI-related revenue currently accounts for only 3–6% of business at the three largest IT companies. A faster shift towards AI-related services could have a more visible impact on the revenue of mid-cap companies.
“So even if they [big companies] invest big time, move very fast, for them to see that AI has a positive impact versus the deflationary effect that it’s having on the core business would be less, whereas for a mid-cap IT companies, I’m sure they can move faster and can also see tangible impact on their top line from AI-related,” he said.
To that extent, he said, any company which is doing more to make sure that they are relevant and do more on the AI side will benefit, and mid-cap would be a better play.
Beyond IT, Ravuri is positive on auto and other consumer discretionary stocks, saying demand remains strong and could get another boost from the proposed pay commission. He estimated that the overall economic impact could be ₹3 lakh crore to ₹4 lakh crore over the next 12–18 months, compared with around ₹80,000 crore from the goods and services tax (GST) rate cut. “The real impact on discretionary can be much more,” he said.
Edited by : Shweta Mungre
First Published: Aug 28, 2026 1:09 PM IST
