Why Expert Believes AI Could Trigger The Next Growth Wave For Indian IT Stock

Despite concerns around slowing growth and AI-led disruption, some investors believe the market has become excessively pessimistic about the future of Indian IT companies. While the first phase of AI adoption has focused on cost reduction and efficiency gains, experts argue that the long-term opportunity could be much larger. According to Prateek Nigudkar, Senior Fund Manager, Shriram AMC, the widening gap between enterprise AI adoption and the capabilities of frontier AI models could create significant demand for technology services over the next three to five years. He believes Indian IT firms have repeatedly demonstrated their ability to adapt to major technological shifts, from outsourcing to cloud computing. With partnerships involving leading AI companies such as OpenAI and Anthropic, Indian IT firms may be well-positioned to benefit from the next wave of AI-driven transformation.