TCS and Infosys reveal big AI plans in the fourth quarter of the financial year 23; expect revenue streams to open up

Tata Consultancy Services (TCS) and Infosys announced significant ambitions to monetize generative AI capabilities in their Q4 FY23 earnings call last week. This is due to the increasing popularity of OpenAI’s chatbot, ChatGPT.

During the Q4 FY23 results call on Thursday, Infosys CEO and MD Salil Parekh stated, “We anticipate generative AI to provide more opportunities for work with our clients, as well as to enable us to improve our productivity.”

TCS COO N Ganapathy Subramaniam expressed similar sentiments. “He remarked that generative AI is an incredibly fascinating technology”. We’ve been working on it for a while, and we’ve run some internal tests.”

Parekh from Infosys further stated the business presently working on many projects that make use of AI skills.

Parekh clarified that they are utilizing generative AI capabilities both for their clients and internally. He added that they are currently working on various projects with clients using generative AI platforms to target particular areas of their business.

It is worth mentioning that in 2015, Infosys and other investors committed $1 billion to OpenAI. OpenAI’s ChatGPT chatbot was trained on the GPT language model, the most recent version of which is GPT4.

According to Parekh, their AI models are being trained on their own software libraries.

Can AI technologies developed by Indian IT service providers compete with ChatGPT, NotionAI, Midjourney, and others? Experts and corporate executives agree that it is unlikely.

For starters, analysts say Indian IT is a little late to the AI party and would be better off expanding on existing AI systems than creating them from scratch.

Kotak Institutional Equities mentioned in one of its publications that by using foundational models that decrease the expense and labor of developing AI systems from the beginning, businesses can prioritize constructing with AI rather than constructing AI.

The company’s management stated that the tools it would create would most likely respond to the demands of its clients and would have specialized areas of expertise.

According to Subramaniam, we will develop a particular proficiency in AI capabilities using the toolset and continue to meet our client’s expectations.

TCS COO outlined several automation tools the business has designed around their clients’ demands in a chat with Business Today last week.