Infosys Targets $400 Bn AI Opportunity by 2030 Amid Strong AI Demand

Infosys has crossed $1 billion in annualised artificial intelligence (AI) services revenue, marking a key milestone in its technology and growth strategy. Chairman Nandan Nilekani announced the development while addressing shareholders at the company’s 45th Annual General Meeting (AGM) on Tuesday, according to PTI.

He said AI will act as a force multiplier for IT services companies rather than a disruptive threat. “AI will not replace companies like ours but amplify those who move with purpose and adapt with speed,” Nilekani said.

He added that Infosys is targeting a $300–400 billion AI-first services opportunity by 2030, as global demand for enterprise AI solutions continues to expand.

Strong Margins, Steady Growth

Infosys reported revenue of ₹46,402 crore in the fourth quarter of FY26, reflecting a 2% sequential increase. While revenue growth remained modest, profitability showed a stronger improvement across key metrics.

Operating profit (EBIT) rose 16.6% sequentially to ₹9,743 crore, while EBIT margin expanded to 21%, up from 18.4% in the previous quarter. Profit before tax increased 17% quarter-on-quarter (QoQ) to ₹10,797 crore, supported by controlled expenses.

FY27 Outlook and Workforce Trends

Infosys issued a cautious revenue growth forecast for FY27, guiding for constant currency growth of 1.5% to 3.5%. This is lower than its earlier estimate of 3% to 3.5%.

The company also saw a sequential decline in headcount during the March quarter, with total employees falling by 8,440 to 328,594. Despite the decline, the overall workforce remains higher on a year-on-year (YoY) basis.

Legacy Modernisation and Revenue

Nilekani said the rise of AI is accelerating the need for companies to modernise older technology systems. He said enterprises are being forced to upgrade legacy infrastructure faster than in previous technology cycles.

He added that this shift is also increasing collaboration between enterprises and global technology firms, as companies seek support in building AI-ready systems.

“The AI revolution has made legacy modernisation urgent in a way nothing else has,” he said, highlighting the growing pressure on businesses to adapt quickly.

Build Versus Buy Shift

Nilekani said companies are changing their approach to software development, with a growing preference for building solutions in-house rather than relying only on external software vendors.

He explained that future value creation will come from integrating AI models and agent-based systems with traditional enterprise transaction systems that power core operations.

“The preference will be to build versus buy for software,” he said, adding that value will increasingly come from combining AI systems with existing enterprise platforms.

Closing the Deployment Gap

Nilekani also pointed to a gap between AI adoption and real-world implementation in large organisations. He said deploying AI at scale requires strong architecture, testing systems, cybersecurity, and data governance frameworks.

He added that these capabilities are critical for enterprise-grade solutions and cannot be easily replaced by external platforms alone.

“The AI deployment gap in large enterprise clients is real, and closing that gap is where the work is,” he said, adding that Infosys is actively working with most of its top clients on AI transformation projects.