Cognizant CEO Ravi Kumar delivered a comprehensive outlook on artificial intelligence's transformative impact on the technology sector during his address at the World Economic Forum in Davos. Kumar emphasized that AI represents both a disruptive force and a catalyst for growth, fundamentally reshaping how the industry operates and creates value.

AI's Dual Impact on Employment

Kumar outlined AI's complex relationship with employment in the technology sector, acknowledging that significant job displacement will occur alongside substantial job creation. He projected that more than 90% of future positions in IT will be connected to AI, marking a fundamental shift in the industry's skill requirements.

The CEO explained that while certain roles will become redundant, demand will rise sharply for specialized skills, particularly at entry levels. This shift is expected to lead to higher wages and broader job creation over time, with productivity gains driving increased compensation across the workforce.

Industry Transformation and Growth Prospects

Kumar characterized the next three years as a phase of "big and bold bets" for the global technology industry. He emphasized that AI is fundamentally reshaping how software is built and how companies operate, describing the transformation as rewriting classical software with AI-enhanced approaches.

"The future is about doing more for less by applying AI to operations," Kumar stated, positioning the IT services sector in India as structurally positioned for double-digit growth. He described the Indian IT sector as a bellwether for the broader economy, suggesting its performance indicates wider economic trends.

Strategic Direction and Expansion Plans

Cognizant's strategic approach involves layering mergers and acquisitions with organic growth, maintaining a sharper focus on AI-led capabilities. The company plans to expand its presence in Europe, where Kumar acknowledged it currently trails some industry peers.

India IPO Discussions

Kumar revealed that Cognizant is engaged in advanced discussions with Indian regulators regarding a potential local listing. He described these regulatory engagements as "constructive" and expressed the company's ambition to be among the first global IT firms to complete this process.

The CEO's optimistic outlook concluded with his assessment that AI serves as a significant tailwind for the industry. "With AI as a tailwind, this industry is built for double-digit growth. The next few years should take us back to the glory days of technology," Kumar stated, reflecting confidence in the sector's trajectory.

Productivity and Operational Excellence

Cognizant has already begun realizing tangible benefits from AI integration, with Kumar highlighting a 10% increase in revenue per employee as evidence of productivity gains. This metric demonstrates the company's ability to generate more value with existing resources, supporting his broader thesis about AI's transformative potential for operational efficiency and profitability in the technology services sector.

Cognizant Technology Solutions is facing multiple class-action lawsuits in US federal courts following a significant data breach at its healthcare claims processing unit, TriZetto Provider Solutions. The legal challenges highlight growing concerns about cybersecurity vulnerabilities in healthcare IT operations that handle sensitive patient data.

Legal Proceedings and Court Filings

According to court filings reported by Bloomberg Law, at least three lawsuits were filed in federal courts in New Jersey and Missouri. The legal actions accuse Cognizant and its TriZetto Provider Solutions unit of failing to adequately protect sensitive personal information and provide timely breach notifications to affected individuals.

Breach Timeline and Impact

The lawsuits allege that hackers gained unauthorized access to TriZetto Provider Solutions systems as early as November 2024. However, Cognizant reportedly did not discover the intrusion until October 2, 2025, leaving protected private data exposed for nearly a year.

The breach compromised various types of sensitive personal information:

• Social Security numbers
• Financial account details
• Home addresses
• Other protected private data

Plaintiff Allegations

Class-action complaints criticize several aspects of Cognizant's handling of the breach. Plaintiffs contend that the company failed to promptly inform affected parties once it became aware of the incident. The lawsuits also criticize the lack of detail in public disclosures about the breach, including insufficient information about the root cause and remedial measures taken.

Plaintiffs argue that the delay in notification may have impeded victims' ability to protect themselves from identity theft or fraud, potentially exposing them to ongoing security risks.

Company Response

Cognizant and TriZetto have stated they take data protection seriously. A TriZetto spokesperson acknowledged the incident, stating the company "takes the protection of information very seriously and regrets any inconvenience this incident may have caused." However, the spokesperson declined to provide further comment due to ongoing litigation.

The company has not disclosed any estimate of possible financial impact from the breach or the resulting legal proceedings. The number of potential plaintiffs and the full extent of the data compromised remain unclear.

Industry Implications

The legal exposure comes as healthcare IT operations become increasingly critical in handling sensitive patient data and healthcare claims for providers and insurers. The incident underscores the growing stakes of cybersecurity failures in the healthcare sector, where data breaches can have far-reaching consequences for both companies and affected individuals.