AI: The Catalyst, Not the Killer, of India’s IT Future

Tech Mahindra Chairman Anand Mahindra asserts that rather than replacing the IT services industry, artificial intelligence will make it more vital than ever as businesses navigate the complexities of enterprise-scale adoption.

MUMBAI — Addressing shareholders at Tech Mahindra’s 39th Annual General Meeting, Chairman Anand Mahindra dismissed the "elephant in the room"—the recurring fear that the rise of artificial intelligence (AI) will sound the death knell for India’s massive IT services sector. Instead, he argued that AI represents one of the largest growth opportunities the industry has ever encountered.

Beyond the Productivity Hype

Mahindra acknowledged that anxieties surrounding new technology cycles are historic, yet he maintained that AI’s role is evolving from a mere productivity tool at the periphery of enterprises to the central nervous system of modern business.

"AI is no longer just a productivity tool at the edge of the enterprise," Mahindra noted. "It is moving to the centre of how businesses design work, serve customers, manage risk and make decisions."

However, he cautioned that while the concept of AI is simple, the execution is a significant challenge. Most global enterprises are currently hindered by "technology debt," characterized by fragmented data, complex regulatory requirements, and aging legacy infrastructure. Because AI cannot simply be layered over these systems as a "plug-and-play" solution, the expertise of IT service providers becomes indispensable.

The 'Alpha' of Enterprise Value

Mahindra emphasized that the true competitive advantage—or "alpha"—for any company in the future will not be the AI models themselves, which will likely become commoditized. Rather, it will be rooted in a company’s proprietary data, business workflows, institutional domain expertise, and human judgment.

"Our role at Tech Mahindra is to help preserve that alpha through platforms, solutions and workflows that sit above and around the model," he explained. He underscored that the enterprise of the future will not be an "all-human or all-AI" entity; instead, it will be built on human judgment amplified by AI capabilities.

A Call for Sovereign AI

Reflecting on India’s technological history, Mahindra called for the nation to build "Sovereign AI" capabilities. Drawing a parallel to the 1980s, when India developed the PARAM supercomputer after being denied access to foreign systems, he argued that India must move beyond being a consumer of intelligence built abroad.

"India cannot be only a consumer of intelligence built elsewhere. It must also be a creator, shaper and trusted deployer of intelligence," Mahindra stated. He advocated for a path of "indigenous capability, trusted collaboration, and the ability to build, adapt and govern critical AI systems on our own terms."

Strengthening the Human-AI DNA

To bridge the gap between AI and practical business outcomes, Tech Mahindra has launched "Project Helix." Through this initiative, the company is deploying "Vector Squads" designed to interweave human expertise with AI agents, combining domain knowledge with governance and responsible AI practices tailored to each client's specific context.

As the industry stands on the precipice of this transformation, Mahindra remains optimistic. By acting as the trusted architect that integrates, governs, and customizes AI, India’s IT services sector is not facing a decline, but rather a new, more consequential phase of its evolution.

Key Facts at a Glance

• Strategic Evolution: Anand Mahindra asserts that IT services are becoming more important as enterprises struggle to deploy AI securely at scale.

• The "Alpha" Advantage: Long-term business success will be driven by proprietary data, workflows, and human judgment rather than access to AI models alone.

• Project Helix: Tech Mahindra’s new program uses "Vector Squads" to combine human domain expertise with AI agents.

• Sovereign AI: Mahindra urged India to build indigenous AI capabilities rather than relying solely on foreign-developed technologies.

FAQ

Will AI lead to widespread job losses in the IT sector? Anand Mahindra rejects the fear that AI will "kill" IT services. Instead, he views it as a shift that will automate routine tasks, allowing professionals to focus on high-value roles like AI architecture, ethics, and business consulting.

Why is enterprise AI adoption so difficult? Most organizations suffer from fragmented data, legacy systems, and complex regulatory frameworks. AI requires careful integration, governance, and customization, creating a high demand for expert technology partners.

What is "Sovereign AI" in this context? It refers to India's ability to build, adapt, and govern critical AI systems on its own terms, fostering indigenous capabilities rather than depending entirely on technology developed by other nations.

Source: Tech Mahindra AGM Address, Business Today, Fortune India