Davos 2025: Lot More Certainty Than Last Year, Says HCLTech CEO Amid Trump-Policy Jitters

The level of certainty in the global business environment has significantly increased as compared to last year, according to C Vijayakumar, chief executive officer of HCL Technologies Ltd.

"Last year, there was a lot more uncertainty with several elections and geopolitical tensions," Vijayakumar told NDTV Profit on Thursday on the sidelines of the World Economic Forum in Davos. "In contrast, there is clarity to a major extent. The uncertainty variables have reduced. There is a lot more certainty in 2025."

The HCLTech managing director's remarks come amid jitters over US President Donald Trump's potential trade policies that may adversely impact an array of businesses. Several business leaders and policymakers who have assembled in Davos suggested that uncertainty could be the only way forward as it remains to be seen how Trump's tariff plans unfold.

However, some of Trump's policies are expected to boost the US economy in the short term, as per analysts. This can bode well for the Indian information technology sector as major clients are based in the US.

Vijayakumar pointed out that the "US economy is going strong". There will be some changes in terms of policies in the period to come, and "corporates are prepared to adapt to those changes", he said.

AI Impact

Artificial intelligence has remained a subject of focus among business leaders who have attended the WEF over the past couple of years. According to Vijayakumar, companies have shifted their approach to some extent as they are "narrowing down to some areas where they want to double down and see the impact of AI".

The level of automation is "significant" for forward-looking companies and AI is "only going to accelerate that journey", the HCLTech CEO said.

Vijayakumar, however, stressed that the impact of AI could be actually gauged through "a little bit of decoupling of people growth and revenue growth".

If a company is getting 10% more efficient using generative AI, then it should get 10% additional growth without adding headcount, he said. "Because there is some human potential that is getting unlocked. Now you have to see how to leverage that potential to create growth. I think that is the true validation of any company strongly leveraging AI," Vijayakumar added.