Addressing concerns over AI’s impact on the IT services industry, Nilekani said the technology would not replace companies such as Infosys.
“The AI deployment gap in large enterprises is real,” he said, adding that enterprise context remains critical to successful AI adoption.
“More than three years after GenAI was launched, Infosys is more relevant than ever before,” Nilekani said, arguing that the AI revolution has accelerated demand for legacy modernisation and fresh technology investments.
According to him, large enterprises continue to face challenges in integrating, scaling and operationalising AI, creating opportunities for technology services companies with deep domain expertise.
Nilekani also said the AI era demands continuous learning and new mental models, noting that Infosys recruited 20,000 college graduates during FY26.
AI services revenue approaches $1 billion
At the AGM, Chief Executive Officer and Managing Director Salil Parekh reiterated the company’s AI revenue outlook, first shared during its third-quarter earnings update.
Infosys currently generates nearly $1 billion in annual AI services revenue, he said.
The company highlighted its AI strategy, partnerships and execution capabilities as key growth drivers. Infosys is also deploying AI and automation extensively across internal functions, including finance, marketing and software development, to improve productivity and operational efficiency.
Parekh said automation-led efficiencies have helped optimise the company’s delivery model and workforce pyramid.
FY26 free cash flow remains strong
Separately, Nilekani said Infosys delivered its second consecutive year of free cash flow conversion exceeding 100% in FY26.
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The company reported total shareholder payouts equivalent to about 113% of free cash flow during the year, including the impact of its share buyback programme.
Shares of Infosys ended 3.42% lower at ₹1,029 ahead of the AGM on Tuesday. The stock has declined around 37% so far this year.
