AI-first strategy working for Infosys despite unresolved ethical, IPR issues, says Nilekani at AGM

Artificial Intelligence-first business strategy adopted by Infosys is working well for the company despite unresolved ethical and IPR issues around the technology, said Chairman Nandan Nilekani on Wednesday. In his address at Infosys' 42nd Annual General Meeting, Nilekani said the company can be more efficient while nurturing readiness for growth, given its performance in challenging scenarios created by inflation, interest rates, geopolitics, demand volatility and supply chain dislocations.

''Several practical, ethical and intellectual property-related issues, when it comes to AI remain unresolved. We also know that the motto of scaling AI in the enterprise is far from simple. And yet, the AI-first strategy we're embracing already working for us,'' Nilekani said.

Volatility of times creates several probable future states and businesses must be equally prepared to succeed in any of those, said Nilekani referring to the rising interest rates across the world. Infosys grew in double digits across most industry segments and across major geographic markets in FY23, 26% in Europe and 12% in the US, said Nilekani.

He said that the board has approved a dividend of Rs 17.5 per share, taking the total to Rs 34 per share. ''The company has returned approximately 86 per cent of free cash flow to shareholders over four years starting FY20,'' Nilekani said.

Infosys also informed that it has returned USD 3.1 billion last year to shareholders, comprising USD 1.7 billion as dividends and USD 1.4 billion through a share buyback programme.

FY23 has been a year of strong overall growth - 15.4% in constant currency, delivering $18.2 billion in revenue, said Nilekani.

Infosys had 95 large deals valued at $9.8 billion for FY23, of which 40% were not new, he added.

Nilekani said that the company recruited over 50,000 college graduates, bringing the total headcount to over 3.4 lakh employees, of which 39 per cent were women.

Several shareholders during the AGM asked the board about the company not taking a tender route for buyback, which they felt could have benefitted them with higher returns.

Infosys board, in its meeting on October 13, 2022, approved the buyback of equity shares from the open market route through the Indian stock exchanges, amounting to Rs 9,300 crore at a price not exceeding Rs 1,850 per share.

The buyback was completed in February at an average share price of Rs 1,539.06 apiece.

With inputs from PTI