Artificial intelligence could account for as much as half of Infosys Ltd.'s work over the next two to three years, Chief Executive Officer Salil Parekh said, underlining the growing contribution of AI-led transformation to the IT services company's business. However, he also flagged risks associated with the rapid expansion of AI infrastructure, including the possibility of a backlash against large-scale investments in data centres extending to India.
Speaking at the Bloomberg New Economy Forum 2026 in New Delhi on Tuesday, Parekh said AI transformation currently contributes about 8% of Infosys' revenue, with the business growing at a double-digit pace quarter-on-quarter. The company expects this share to rise to 20-30% over the next few quarters, before potentially reaching 50% over the next two to three years.
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"We're building agents for clients," Parekh said, highlighting the company's push to develop AI-powered tools and solutions for customers. He added that around 80,000 of Infosys' three lakh employees are working on coding tools for client engagements or internal projects.
Parekh said the company is targeting productivity improvements of 40-60% over three to five years through AI adoption. Banking know-your-customer (KYC) processes and anti-money laundering (AML) operations at telecom companies are among the areas where these gains could be realised.
The growing adoption of AI is also reshaping how technology companies deploy computing resources. Parekh emphasised the need for efficient token usage as businesses scale AI applications, while pointing to constraints arising from sovereign cloud requirements, which can restrict the availability of computing capacity.
While demand for AI-related work remains strong, the economics of building data infrastructure could pose longer-term challenges. Parekh cautioned that risks could emerge as Moore's Law continues to influence the data centre business, potentially changing the economics of computing capacity and infrastructure investments.
He said the impact of these risks could become more visible over the next five to 10 years, making it critical for companies to keep pace with the speed of technological change.
Parekh also flagged a possible backlash against the expansion of AI infrastructure. "Seeing some backlash to build out some of the AI in many of the Western markets," he said, adding that "maybe that will come to India" as well.
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Despite these uncertainties, Infosys is continuing to invest in talent. The company recruited 20,000 graduates last year and plans to hire another 20,000 this year, Parekh said, signalling that its AI ambitions are not being pursued at the expense of fresh talent intake.
The comments come as the Bloomberg New Economy Forum 2026, being held in New Delhi from October 13 to 15, brings global business and policy leaders together to discuss economic and technological shifts. The eighth edition of the forum also coincides with Bloomberg's 30th anniversary of operations in India.
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