India's LTIMindtree betting big on new AI unit, CEO says

By Haripriya Suresh

 

BENGALURU (Reuters) -LTIMindtree is doubling down on AI with investments in a newly-launched platform that helps companies adopt the technology, its top boss said, as India’s $283-billion IT industry faces broader cuts in non-essential spending by clients.

 

The business, BlueVerse, launched in June, uses ready-made digital assistants to solve problems for firms.

"The conversation around AI is getting serious," CEO Venugopal Lambu said in an interview, without disclosing the size of the planned investment in the AI unit. "That’s the big green shoot I see."

 

The IT firm is seeing a spike in smaller, AI-led deals that bring in quick revenue, even as the technology increasingly underpins larger, strategic contracts, the CEO said.

 

AI-led efficiencies are also creating newer challenges for IT firms.

 

For instance, LTIMindtree made less revenue from its top five clients in the latest quarter as they expect the company to pass on savings from AI-led productivity gains.

 

Lambu says these are transitory operational challenges that the company has to navigate, and remains confident of closing the financial year with near double-digit revenue growth.

 

While AI dominates boardroom conversations at IT firms, most have yet to reveal details of AI-specific revenue.

 

(Reporting by Haripriya Suresh; Editing by Mrigank Dhaniwala)