Infosys Chairman Nandan Nilekani has raised concerns about the confluence of global uncertainties stemming from escalating tariff conflicts, the swift integration of artificial intelligence (AI), and the ongoing energy transition. Speaking at the company's 44th annual general meeting (AGM) on Wednesday, Nilekani characterized the current environment as a "perfect storm of multiple colliding trends," unlike anything witnessed before.
Nilekani highlighted a significant shift in the global landscape, noting the transition from a single, unified global market to a more fragmented system of blocs. This shift compels companies to make critical strategic decisions to effectively navigate the complexities of operating across different regions. He drew parallels to the COVID-19 pandemic, during which businesses recognized the urgent need to de-risk their supply chains. He emphasized that tariffs are signaling the need for businesses to diversify their sourcing strategies. With the rise of bilateral and regional trade routes, accelerating supply chain diversification is becoming increasingly crucial.
Addressing the rapid adoption of AI, Nilekani acknowledged the uncertainties it presents. He emphasized the growing importance of modernizing legacy systems and overhauling data architecture to ensure that all company data can be effectively utilized by AI. Companies, he stated, require both "AI foundries" for fostering innovation and "AI factories" for scaling successful AI implementations. He also noted that regulatory differences across various regions pose implementation complexities and challenges for AI systems. Despite these challenges, Nilekani doesn't view AI as a threat, but rather as a new wave of growth. Infosys is actively investing in upskilling its workforce in AI, with over 275,000 employees already trained at different levels of proficiency.
Furthermore, Nilekani touched upon the energy transition, emphasizing that its success hinges on breakthroughs in solar, wind, battery, hydrogen, and nuclear technologies. He stressed that every business, regardless of its location or industry, must adapt to rapidly changing business and technological disruptions to navigate an uncertain future.
In response to questions about the impact of AI on the workforce, Nilekani stated that Infosys, as a digitally native company, views AI as a driver of cultural and operational changes across work, workplaces, and the workforce. Currently, over 20,000 Infosys employees are utilizing GitHub for coding, and the company is actively investing in expanding its pool of AI builders and AI masters.
Despite macroeconomic challenges, Nilekani expressed confidence in Infosys' ability to capitalize on both cost-takeout deals and discretionary spending opportunities. He reiterated that supply chains will continue to evolve as tariffs become another form of arbitrage, necessitating further diversification. Nilekani believes that market share gains will persist despite macroeconomic pressures as companies adapt to technological disruption.
Nilekani also addressed the evolving role of Global Capability Centers (GCCs), noting that they are transitioning from cost-saving centers to innovation hubs and key clients for Infosys in the field of AI. Infosys has expanded its capabilities with a dedicated GCC practice, appointing Deval Shah as its leader, and aims to win more business from GCCs through "Project Altius."
