New Delhi: India’s technology companies are being seen as ready to take on the growing demand for artificial intelligence (AI) services, even as concerns rise about job losses due to automation. IT Minister Ashwini Vaishnaw said the sector is gradually shifting from traditional software services to an AI-focused services model.
Speaking on the sidelines of the India AI Impact Summit in New Delhi on February 18, the minister said companies around the world are still running on old technology systems, says Moneycontrol. These legacy systems need upgrades before they can properly use modern AI tools, creating a large opportunity for IT service providers.
IT firms shifting towards AI services
“IT companies are pivoting towards AI services model, working on providing the AI services,” Vaishnaw said.
His comments come at a time when IT stocks have been under pressure. Investors have been worried that faster adoption of AI could reduce the need for traditional IT services. Global IT shares recently saw a sharp decline in market value following developments in the AI space, including new product launches by AI firms that raised questions about future demand for conventional services.
However, the minister said the shift to AI is not small or gradual but a major transformation that will change how industries operate. According to him, this transition will require large-scale system upgrades, and Indian firms are in a strong position to handle such work because of their experience and scale.
Concerns over jobs and skill changes
On the issue of job losses, Vaishnaw said “Upskilling and reskilling are already underway through coordinated efforts by industry, academia, and the government”. He explained that efforts are already underway to upskill and reskill workers through cooperation between companies, educational institutions and the government. The idea is to prepare employees for new roles that AI-driven systems will create.
The focus on upgrading old systems with AI tools could generate fresh business for Indian IT firms, even as some job roles change. The minister also noted that many countries now agree that AI will have a major impact across sectors.