Infosys CEO Salil Parekh delivered an optimistic outlook on artificial intelligence-driven growth opportunities at the World Economic Forum in Davos, emphasizing that AI adoption is creating significant revenue potential despite ongoing pressures in parts of the global technology services industry. Speaking to CNBC-TV18, Parekh highlighted the company's strong positioning in the AI transformation space and improving demand conditions across key sectors.

AI Adoption Driving Client Engagement

Parekh revealed impressive statistics regarding Infosys' AI engagement with clients. The company has achieved substantial penetration in AI-related projects across its client base, demonstrating the widespread adoption of artificial intelligence solutions in enterprise environments.

The CEO emphasized that AI is emerging as a significant source of incremental revenue, with some growth opportunities expected to begin contributing from the next financial year. He specifically highlighted software development and legacy system modernisation as two key areas where AI-led tools and agents are reducing time and cost for clients.

Sector-Wise Demand Recovery

Parekh expressed confidence about the outlook for the next financial year, expecting it to be better than the current one. The improvement is particularly notable in specific sectors that have shown signs of recovery.

The CEO noted that discretionary technology spending has started to return in financial services during the current year, indicating a positive trend in one of Infosys' key market segments.

AI Impact on Traditional Services

While acknowledging the transformative nature of AI adoption, Parekh provided a balanced perspective on its impact across the company's service portfolio. He recognized that AI adoption could lead to revenue compression in some traditional services but maintained an optimistic view of the overall opportunity.

The CEO explained that AI-led tools are making previously uneconomical projects viable for clients, creating new technology spending rather than merely shifting existing budgets. This dynamic is expected to generate net positive growth opportunities over the medium term, with AI-driven work growth outweighing compression in traditional services.

Market Environment and Performance

Parekh attributed the improving environment to better global economic indicators, including stronger US growth and expectations of lower interest rates, which typically support technology spending. He referenced Infosys' recent performance, noting the company reported its third consecutive quarter of better-than-expected results and raised its revenue guidance.

The CEO indicated that the company plans to provide more detailed information about specific AI revenue opportunities during its investor day scheduled for February, suggesting concrete developments in the company's AI strategy and financial projections.

Strategic Outlook

Despite acknowledging uneven demand in certain sectors, Parekh emphasized that the overall technology services environment is improving. The combination of AI-driven opportunities, sector-specific recovery, and favorable macroeconomic conditions positions Infosys for growth in the coming financial year. The company's extensive AI project portfolio and high client engagement rates in AI initiatives demonstrate its strategic positioning to capitalize on the artificial intelligence transformation across industries.

Infosys has achieved a significant milestone in global brand recognition, being acknowledged as the fastest growing IT services brand worldwide. The company has demonstrated exceptional brand value growth with a compound annual growth rate of 15%, positioning itself as a leader in the competitive IT services sector.

Brand Valuation and Market Position

The recognition places Infosys among the top three most valuable IT services brands globally, with the company's brand valued at $16.4 billion. This achievement underscores the company's strong market presence and the value it has created in the global technology services landscape.

Enhanced Brand Strength Performance

Infosys has significantly improved its Brand Strength Index score, achieving 86.8 out of 100. This enhanced score reflects the company's robust brand equity and demonstrates its ability to maintain strong brand positioning in the highly competitive IT services market.

Industry Leadership Recognition

The acknowledgment as the fastest growing IT services brand worldwide highlights Infosys's consistent performance and strategic brand building efforts. The 15% CAGR in brand value growth represents substantial progress in building brand equity and market recognition across global markets.

This recognition reinforces Infosys's position as a leading player in the global IT services industry, demonstrating the company's ability to build and maintain strong brand value while achieving consistent growth in brand recognition and market positioning.