- Mahindra CEO Anish Shah has called the IT stock selloff an overreaction to AI disruption
- Tech Mahindra shares fell 10% this month, losing Rs 1.8 lakh crore in market value
- AI tools by Anthropic raised concerns about traditional IT staffing and billing models
Mahindra Group Chief Executive Officer Anish Shah said the recent selloff in shares of Indian information technology companies are an "overreaction" to the disruption caused by artificial intelligence.
"There has been a high degree of overreaction to this," Shah told NDTV Profit's Niraj Shah in a televised interview on Thursday, when asked about advances in AI tools by US firm Anthropic that threatens to erase some business for software and consulting firms. "We have known what the benefits of AI are. It does bring in a high level of productivity and we have adapted to that."
Notably, group company Tech Mahindra Ltd. stock has sunk 10% so far this month, wiping off Rs 1.8 lakh crore in market capitalisation. This happened after Anthropic's release of 11 open-source plugins for Claude Cowork, which create “digital employees” for functions in legal, finance, sales, and customer support, raising concerns about the future of traditional staffing and billing models in the tech sector.
Tech Mahindra Vs Nifty IT (Month-To-Date)
Shah said he sees a "lot of opportunities opening up" for IT services companies from the rapid advancement of AI and dismissed the apocalyptic predictions for the sector.
"In the last 25 years, we have come across (predictions that) call centres will go away, Y2K will wipe out IT services, blockchain and many more. Technology is sometimes hyped in the short term and underappreciated in the long term," he said.
ALSO READ: Anthropic Vs Anthropic: As US AI Giant Enters India, A Bengaluru Firm Claims The Name
Watch the full interview:
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