ChatGPT other AI models may worry Indian IT companies; but why not in the long run

Generative AI models such as Open AI’s ChatGPT may hurt Indian IT companies in the short term, says a report by research firm JP Morgan. The report says that as generative AI is implemented more broadly, technology consulting companies like Accenture and Deloitte will gain market share over Indian IT companies like Infosys and Wipro in the near term. The analysts of the company said in a note to clients.

The research note further adds that generative AI can be a “deflation driver” in the near term on legacy services as they compete on pricing. These models may make it mandatory for organisations to go for employee retraining and drive loss of competitiveness, the note adds. In its note, JP Morgan says that among Indian IT companies, Infosys and TCS are likely to retrain their staff faster than smaller and several mid-sized companies due to their better graduate hiring and training infrastructure.