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Infosys VP Says High Cost Hinders AI Adoption Among IT Clients

Feb 26, 2024 - techtimes.com
The adoption of AI technology among IT clients is being hindered by high implementation costs, according to Satish HC, executive vice-president and co-head of delivery at Infosys. Despite the potential benefits of AI, financial constraints and the need to focus on critical requirements like cybersecurity resilience are slowing down the rate of AI adoption. The Indian IT sector is projected to grow by 3.8% to $253.9 billion in the fiscal year ending March 2024, but this growth is tempered by clients' reluctance to spend more due to inflation and global economic uncertainty.

A survey by Insight Enterprises found that many business leaders have implemented generative AI tools for data analysis, task collaboration, and content creation. However, challenges such as employee training and security remain. While only a small percentage of businesses see implementation costs as significant barriers, high costs still impede AI adoption among IT clients. Despite these challenges, companies like Infosys remain optimistic about the future of AI, but advise caution due to economic uncertainties.

Key takeaways:

  • AI adoption among IT clients is hindered by high implementation costs, despite the excitement and potential benefits of the technology.
  • Infosys executive, Satish HC, emphasized the importance of considering return on investment due to the high cost of AI technology and the current focus on cost-cutting projects.
  • Despite the challenges, Infosys remains optimistic about the future of AI technology and has adopted an 'AI first' strategy.
  • A survey by Insight Enterprises found that many business leaders have implemented generative AI tools within their organizations, primarily for data analysis, task collaboration, and content creation, but challenges such as employee knowledge/training and security remain.
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