ChatGPT, other AI models to disrupt Indian IT firms: JP Morgan analyst

(Reuters) – Generative AI models such as ChatGPT will slow down market share gains and deflate pricing for Indian IT companies in the short term, analysts at J.P.Morgan said on Friday.

As generative AI is implemented more broadly, consulting firms like Accenture and Deloitte and will gain market share over Indian IT firms like Infosys Ltd and Wipro Ltd in the near term, analysts at the brokerage said in a note to clients.

Generative AI can be a “deflation driver” in the near term on legacy services as they compete on pricing, necessitate staff retraining and drive loss of competitiveness, they added.

“ChatGPT is likely to deflate legacy services the most and application services the least.”