AI to Accelerate Legacy Modernisation Demand: Nilekani

Artificial intelligence (AI) is accelerating demand for legacy modernisation and creating new opportunities for information technology (IT) services firms, Nandan Nilekani, Chairman ,Infosys, said on Tuesday, arguing that enterprises will increasingly need technology partners to integrate artificial intelligence into mission-critical business systems.

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Speaking at the company’s 45th Annual General Meeting (AGM), Nilekani said concerns that generative AI and coding automation could reduce the relevance of technology services companies overlook the broader requirements of enterprise technology transformation.

“More than three years after GenAI’s launch, Infosys is more relevant than ever and well-positioned for the decade ahead,” he said.

According to Nilekani, software development extends well beyond coding.

He pointed out that Enterprise AI deployments require integration with existing technology investments, rigorous testing, resilient architecture, cybersecurity safeguards and data governance frameworks tailored to an organisation’s requirements.

“The AI deployment gap in our large enterprise clients is real, and closing that gap is where the work is. AI will not replace companies like ours. It will amplify those who move with purpose and adapt with speed,” Nilekani said.

AI has made legacy modernisation an urgent priority for enterprises seeking to retire decades-old technology systems and address accumulated technical debt. The next wave of opportunities, he said, would emerge from integrating AI models and agents with traditional transaction systems that continue to underpin enterprise operations, he noted.

Infosys said it is already collaborating with 90 per cent of its top 200 clients on AI initiatives, with customers increasingly looking at the company as a partner for AI-led growth, efficiency and innovation.

The company also disclosed that AI-related revenue has reached about 5.5 per cent of revenue, equivalent to nearly USD 1 billion annually, and is growing rapidly.

Nilekani said Infosys sees a sizeable market emerging around AI-led enterprise transformation and estimated the global AI-first services opportunity at USD 300 billion to USD 400 billion by 2030.

The company said it continues to invest in talent transformation to prepare employees for the AI era. Infosys recruited more than 20,000 college graduates during FY26 and is reskilling employees while redeploying talent into emerging growth areas.

The comments come at a time when enterprises across industries increase investments in generative AI and digital transformation, with technology service providers positioning themselves to support large-scale deployment of AI across business operations.

 

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