- 27 Jun 2024
- ICICI Securities
Enterprise AI to take years to unfold; Company eyeing SaaS, Enterprise, and Cloud Space acquisitions
INFY - 1726 Change: 77.80 (4.72 %)News: As per media reports, during the 43rd AGM of Infosys, Chairman Nandan Nilekani announced that Infosys is working on 225 GenAI programs for its clients, helping them develop their internal AI strategies. He further noted that the adoption of enterprise AI is expected to be gradual compared to consumer AI, as it requires companies to undergo significant internal changes, organize their data, build responsible systems, and comply with various international laws and so on. Infosys has outlined a five-year plan with a significant focus on cloud capabilities and GenAI via Infosys Cobalt. The company sees substantial room for growth in northern Europe and sectors such as healthcare and life sciences. Additionally, Infosys is looking for acquisitions in SaaS, enterprise, and cloud areas, along with incremental geographical expansion.
Views: Infosys is leveraging its platforms, such as Infosys Cobalt and Topaz, for the 225 GenAI programs it is actively working on for clients. This confirms the company's strong positioning and readiness for the transition as enterprise AI unfolds. Infosys' strategic initiatives in AI and cloud, coupled with its focus on high-growth regions and sectors, present a positive outlook in the long term. However, in the short to medium term, the overall challenging macroeconomic conditions are expected to pose challenges for Infosys and other Indian IT services companies.
Impact: Neutral