Infosys Chairman Nandan Nilekani believes artificial intelligence will create new opportunities for India’s IT services industry, with demand growing for AI governance, business transformation and specialised skills.
Fears that artificial intelligence (AI) will trigger widespread job losses across India’s information technology sector are misplaced, according to Infosys Chairman Nandan Nilekani. Speaking at the Bloomberg New Economy Forum in New Delhi on October 13, 2026, Nilekani dismissed predictions of large-scale AI-driven unemployment as “hogwash”, arguing that the technology could generate more work for IT services companies rather than reduce demand.
His remarks come at a time when advances in AI-powered coding tools are raising questions about the future of traditional software development, the demand for technology professionals and the business models of India’s IT services giants.
Nilekani’s central argument is that automating individual tasks does not eliminate the need for the broader expertise required to transform an enterprise.
Why Nilekani Believes AI Will Create More Work for IT Companies
According to Nilekani, software coding represents only one part of a much larger technology services engagement. Businesses adopting AI must also reconsider their operating models, integrate new technologies into existing systems and ensure that these implementations deliver measurable business value.
“The requirement for companies like Infosys or others is actually more than ever before because the transformation of enterprise is a very complex activity, and AI requires you to fundamentally reimagine the way you do business,” Nilekani said at the forum.
He also expressed confidence that the industry would see an increase in demand as organisations explore how AI can reshape their operations.
“We are going to see only more work coming our way,” he said.
The argument reflects a broader distinction between automating a task and transforming an entire business. Although AI tools can increasingly assist with software development, deploying them effectively across complex organisations requires planning, coordination, technical expertise and an understanding of business objectives.
For IT services companies, this could create opportunities to help clients move beyond experimentation and implement AI at scale.
AI Adoption Requires More Than Software Coding
Nilekani highlighted the importance of functions that extend beyond writing code, including governance, change management, business transformation and the safeguards needed to ensure reliable AI deployment.
“Business transformation is not just about coding. Seventy percent is governance, change management, transformation, guardrails,” he said.
As organisations introduce AI systems into their operations, they must address practical challenges such as inaccurate outputs, integration with legacy technology, data security, regulatory compliance and the supervision of increasingly autonomous AI agents.
These requirements create a continuing need for professionals who can evaluate AI-generated results, manage implementation risks, translate business requirements into technical solutions and coordinate change across teams.
The shift could also change the skills that employers value. Alongside software engineering, capabilities in AI governance, systems integration, business analysis, risk management and client engagement may become increasingly important.
For technology professionals, the implication is clear: adapting to AI may require developing new capabilities rather than relying exclusively on traditional coding skills.
Nilekani Challenges the Narrative of AI-Driven Job Losses
Nilekani also criticised what he described as the alarm surrounding AI’s employment impact, calling the idea that AI is driving job losses “disaster marketing to suit the interests of large capital”.
His position contrasts with concerns raised by other economic and business leaders about the potential disruption of employment as AI systems become more capable.
The debate is particularly relevant for India’s IT services sector, which has historically relied on large technology workforces to develop, maintain and manage software for clients around the world.
As AI tools automate more routine programming and related activities, companies may face pressure to reassess staffing requirements, pricing models and workforce capabilities. At the same time, clients seeking to adopt AI will need support with implementation, governance and organisational change.
However, increased demand for AI-related services does not automatically guarantee that every existing role will be retained or that new positions will emerge at the same pace as jobs change. The outcome will depend on how quickly businesses adopt the technology, how effectively employees reskill and how the benefits of automation translate into new commercial activity.
Small Businesses Could Become an Important Source of Future Jobs
Nilekani has also highlighted the potential of India’s small-business ecosystem to contribute to employment generation in an AI-enabled economy.
Smaller enterprises could use AI tools to improve productivity, access new markets and undertake activities that previously required greater financial or technical resources. Wider access to digital infrastructure and business networks could further support their growth.
If these businesses expand their operations, they may create employment opportunities across a range of functions, even as AI automates certain tasks within larger organisations.
This perspective broadens the employment discussion beyond major IT services companies. India’s future AI-related job creation may also depend on whether smaller businesses can use the technology to grow, improve competitiveness and develop new sources of revenue.
What Nilekani’s Remarks Mean for India’s IT Industry
The debate surrounding AI and employment presents India’s technology industry with both an opportunity and a challenge.
For IT services providers, the next phase of growth may depend less on the volume of routine coding work and more on their ability to help clients redesign business processes, implement AI responsibly and deliver outcomes that justify investment.
For employees, the transition could increase the importance of combining technical knowledge with problem-solving, communication, domain expertise and an understanding of business operations.
For business leaders, the priority will be to develop workforce strategies that balance productivity improvements with reskilling, responsible deployment and long-term organisational capability.
Nilekani’s optimism offers a counterpoint to predictions of widespread AI-driven unemployment. His argument is that the technology could expand the scope of enterprise transformation and create new demand for specialised services.
Whether that additional demand ultimately offsets jobs displaced by automation remains an open question. What is increasingly clear, however, is that AI is changing the relationship between technology, skills and business growth—and that the industry’s future will depend on how effectively companies and workers adapt.
–CXO Chronicle
