ITC managing director Sanjiv Puri on Wednesday described the recent decline in the Nifty IT index as an overreaction, pushing back against concerns that artificial intelligence could structurally weaken demand for IT services.
Addressing fears that AI-led efficiency gains may compress revenues for IT companies, Puri said that past technological shifts have consistently expanded economic activity rather than shrinking it. New technologies, he said, tend to raise productivity while opening up new opportunities and business models.
‘AI Doomsday’ Narrative
“Whenever technology comes forward, markets tend to overreact. It has never been a doomsday after the initial reaction. Technology is enabling,” Puri said. He was speaking at the Nasscom Technology and Leadership Forum.
Apart from running one of the country’s largest FMCG businesses, ITC also owns ITC Infotech, giving the group direct exposure to the technology services sector.
Within ITC’s own operations, AI-led solutions are already being deployed across the value chain, with use cases clustered around factory operations, supply chain management and marketing effectiveness.
On the manufacturing and operations side, AI tools are being used to improve efficiency and productivity across factories, logistics and procurement. These applications help optimise processes, support decision-making and address complexities that earlier digital tools were not designed to handle.
In marketing, AI and digital capabilities are enabling sharper consumer targeting and more effective campaign execution. According to Puri, these tools allow ITC to undertake activities that were earlier difficult to execute or scale in a cost-efficient manner.
Predictive AI
Beyond incremental productivity gains, the company is also using AI to address longer-term and more complex challenges. Puri said ITC has used AI-based modelling to assess potential outcomes at 10-year intervals up to 2050.
“The modelling showed the western part of India will face the worst impact. Once a zone is identified, solutions can be developed,” he said, referring to climate-related risks.
ITC’s agriculture platform has also integrated AI to both explore new business opportunities and address persistent structural issues in farming. The platform uses advanced analytics and conversational tools to offer farmers personalised advisory services, access to quality inputs, financial products and market linkages.
Such technology-driven systems allow ITC to reach large and fragmented farming communities at scale and at a lower cost compared to traditional physical outreach models, Puri said.
The company’s broader digital transformation has followed a phased approach, starting with small pilots before being scaled across the organisation. The emphasis has been on embedding technology into core business strategy rather than treating it as a standalone function, supported by investments in infrastructure, talent and internal innovation programmes.
Puri said ITC will continue to invest in AI and digital initiatives where there is a clear business case, reiterating the company’s view that technology-led productivity gains and new value creation will remain central to long-term growth.