“Kumar Rakesh of BNP Paribas offers a nuanced view on the Indian IT services industry's exposure to AI, anticipating near-term pressure from front-loaded AI-led business process automation, which is deflationary and reduces manpower. However, he believes the longer-term outlook is more balanced, as AI-led business transformation will eventually create new, inflationary revenue streams, though this will take longer to materialize. Overall, he expects a neutral impact over the coming years, emphasizing that the impact will be non-linear and not uniform across all IT companies.”