The transformation of the information technology sector driven by artificial intelligence will unfold gradually over the next five to ten years, rather than through a sudden disruption, Infosys co-founder Kris Gopalakrishnan said on Tuesday.
Speaking at the CII Karnataka State Annual Meeting 2026, Gopalakrishnan said recent volatility in IT stocks following announcements by AI firm Anthropic should not be seen as an immediate threat to the industry.
“Markets will always be going up and down. It could be Anthropic releasing AI tools or the Strait of Hormuz being blocked,” he said. “We need to keep in mind that this transformation is going to take time – it’s not like a switch.
It will take between 5 – 10 years. It is definitely going to have an impact but the change will be slow and steady. But what I am confident about is that the Indian IT industry will respond positively.”
What did Gopalakrishnan say?
Gopalakrishnan, who is also chairman of early stage seed fund and startup accelerator Axilor Ventures, said the spread of AI tools could ultimately expand opportunities for IT services firms. He pointed to the sector’s earlier transition to cloud computing, which had initially raised concerns about business models but eventually created new demand.
“In the past, we have seen when during the cloud transition also there were concerns around what the IT industry would do, but they responded very well. However, yes, they will have to re-train people and change their service offerings. But it will be done,” he said.
Indian IT companies likely to benefit
Indian IT companies are also likely to benefit from continued outsourcing by large global corporations that may not undertake complete in-house digital transformation, he added.
However, the industry faces a major challenge in reskilling its workforce. Around five million people are employed in the sector, and retraining them for AI-led roles will require coordinated efforts.
Gopalakrishnan also said India’s AI opportunity is likely to be strongest in the applications layer, where startups can build products and services on top of AI models.