“Arvind Sanger believes that while massive AI capital expenditure is not a bubble, it poses significant structural challenges to traditional software and IT services firms, particularly Indian IT companies. He expects meaningful disruption over a multi-year horizon, leading to potential revenue deflation, margin compression, and a need for valuation resets due to reduced workforce requirements and pressure on manpower-heavy business models. Investors should differentiate between companies building the AI future and those at risk of disruption.”