Fears that artificial intelligence will lead to the downfall of IT firms are unfounded, according to Cognizant CEO Ravi Kumar. Kumar has consistently voiced his optimism about AI's potential to create opportunities, rather than eliminate jobs.
Kumar's positive outlook comes at a time when many are concerned about the impact of AI on employment, particularly for fresh graduates entering the job market. Hiring freezes and job cuts in big tech have amplified these concerns, alongside the increasing adoption of automation. Software developers, among other professionals, are understandably anxious as AI systems evolve into increasingly capable coders.
However, Kumar offers a different perspective. He argues that AI will not take jobs; instead, it will create more. He has observed that AI tools can empower junior developers, making them more productive rather than redundant. Cognizant's internal data indicates that less experienced developers see a 37% increase in productivity when using AI assistance. Kumar believes AI simplifies complex tasks, reducing the advantage of specialized expertise and leveling the playing field, enabling companies to hire more graduates who can contribute quickly with AI support.
Cognizant's CEO views AI as a "ladder, not a lever for redundancy". He emphasizes that AI will provide expertise at your fingertips, differing from previous tech disruptions that simply put information at your fingertips. He also dismisses the idea of building AI systems to replace humans directly, stating that AI will not replace professions such as surgeons but can aid in diagnostics by processing more data than a human could.
Cognizant's commitment to AI is evident in its strategic objectives. The company aims to be the "AI builder," bridging the gap between technology and enterprise value by converting AI into measurable returns on investment for its clients. Cognizant is already using AI to generate 30% of its code and aims to increase this to 50% in the near future. The company's partnership with Cognition seeks to combine autonomous and agentic engineering capabilities with enterprise-grade delivery to help clients modernize faster.
Kumar also addressed the 'AI Economic Council' mentioned in the latest Economic Survey, calling it a "brilliant idea". He acknowledged the fears that jobs of the past are disappearing faster than new jobs are being created. He suggested that an economic council could smooth this transition and pivot technology to enhance human potential and increase wages.
Cognizant's recent financial performance reflects its strategic focus. The company's Q4 2025 earnings beat estimates, with revenue reaching $5.3 billion, a 3.8% increase year-over-year in constant currency terms. Net profit rose 19% to $648 million. The company projects revenue growth between 4% and 6.5% for 2026.
Despite a slight dip in pre-market trading after the earnings announcement, Cognizant is confident in its future. The company signed 28 large deals in 2025, with a total contract value growth of nearly 50% year-on-year. Cognizant is also considering a primary offering and secondary listing in India.
Cognizant has been recognized as a leader in digital transformation services by the Everest Group and Information Services Group (ISG). As of December 31, 2025, Cognizant's total employee count was 351,600, an increase of 14,800 from the previous year. Cognizant plans to hire approximately 25,000 freshers in 2026.
In conclusion, while concerns about AI's impact on the IT industry persist, Cognizant CEO Ravi Kumar presents a compelling case for AI as a catalyst for job creation and increased productivity. Cognizant's strategic investments in AI, its strong financial performance, and its commitment to talent development position it well for continued growth in the evolving technological landscape.