Infosys shares have surged by more than 8% over five trading sessions following CEO Salil Parekh's statement that artificial intelligence (AI) services could account for nearly half of the company's work within two to three years. This growth reflects the rapid expansion of Infosys' AI-related business and strong demand from enterprise clients.
- Infosys' AI services made up over 8% of revenue last quarter and are growing at a double-digit rate.
- The company expects AI to drive 20-30% of its work within a few quarters and nearly 50% in two to three years.
- Infosys hired 20,000 graduates last year and plans to hire another 20,000 this year, training them in AI technologies.
- About 80,000 of Infosys' 300,000 employees currently work on coding tools and AI projects.
- CEO Parekh highlighted risks such as high chip costs, data center relevance, and potential social backlash against AI.
How much has Infosys' stock risen recently?
Infosys' stock price increased by over 8% in the last five sessions. On October 14, 2026, the stock traded around ₹1,088, up approximately 2.4% from the previous close of ₹1,062.10. Earlier that day, it hit a high of ₹1,089.80.
What role does AI play in Infosys' business?
AI services currently contribute more than 8% of Infosys' revenue and are growing rapidly. The company builds AI agents, modernizes legacy technology, and develops coding tools for clients. If the current growth continues, AI could represent 20-30% of Infosys' work within a few quarters and nearly half within two to three years.
How is Infosys preparing its workforce for AI?
Infosys hired 20,000 college graduates last year and plans to hire another 20,000 this financial year. These new employees receive training in AI technologies before working with clients to deploy AI solutions and manage organizational changes. Currently, about 80,000 employees focus on coding tools and AI-related projects.
What is the demand for AI services among Infosys' clients?
Enterprise clients are actively adopting AI services. They are exploring options such as lower-cost tokens and open-weight AI models to optimize costs while maintaining performance. This strong demand is driving Infosys to expand its AI capabilities and workforce.
Are there challenges associated with AI growth at Infosys?
CEO Salil Parekh mentioned several challenges, including the high cost of semiconductor chips, uncertainty about the long-term relevance of data center capacity, and the possibility that new AI models could reduce inference costs significantly. He also noted potential social backlash against AI technologies, especially in Western markets, which could impact the industry over the next five to ten years.
How does Infosys view the future of AI in the Indian IT sector?
Parekh expressed optimism, stating that AI growth is good news for Infosys and the broader Indian technology services industry. The company is investing heavily in AI talent and infrastructure to meet rising client demand and maintain its competitive edge.
Frequently Asked Questions
Q: What percentage of Infosys' revenue comes from AI services?
A: AI services accounted for over 8% of Infosys' revenue in the last quarter and are growing rapidly.
Q: How many employees does Infosys have working on AI projects?
A: Approximately 80,000 of Infosys' 300,000 employees are involved in coding tools and AI-related projects.
Q: What risks did the CEO mention regarding AI growth?
A: Risks include high chip costs, uncertain data center relevance, potential decreases in inference costs, and possible social backlash against AI.
