Concerns that emerging artificial intelligence tools might displace major IT services providers are “overblown” because organizations still require professional assistance to implement and scale these technologies, Babak Hodjat, Cognizant’s chief AI officer, stated in a Reuters interview.
The rise of automated tools from startups like Anthropic has sparked anxiety regarding potential disruption to the business frameworks of global software firms, particularly within India’s traditionally labour-heavy IT services sector. However, Hodjat argued that enterprises are nowhere near trusting a singular, universal AI agent. Instead, he noted that clients still heavily depend on external expertise for the engineering, integration, and governance of complex AI architectures.
“That mapping is our job, it does not come just automatically out of the box,” said Hodjat, whose work helped power Apple’s Siri voice assistant.
Nasdaq-listed Cognizant, which maintains over 70% of its staff in India, recently projected annual revenues exceeding Wall Street forecasts, driven by robust demand as corporations integrate AI into their operational workflows. Similarly, competitors such as Tata Consultancy Services and Wipro have asserted that the rapid embrace of AI will actually stimulate, rather than diminish, the need for software service consultants.
Hodjat’s optimistic outlook for the services industry arrives even as AI-linked workforce reductions begin to surface elsewhere. For instance, logistics software firm WiseTech Global recently announced plans to cut nearly one-third of its staff while incorporating AI into its internal and customer-facing systems. While TCS reported 12,000 job losses last year, it has consistently clarified to local outlets that these were not driven by AI advancements.
Cognizant currently automates about 30% of its coding via AI and targets 50% in the future, yet the firm remains unconcerned about automation erasing junior roles. CEO Ravi Kumar S highlighted during a recent earnings call that the company recruited 25,000 graduates in 2025 and anticipates higher figures for 2026. According to Hodjat, while almost all clients have experimented with AI agents, they ultimately realise they need professional partners to deploy them effectively for tangible returns.
Anthropic, Infosys collaborate on custom AI agent development
In a strategic move to advance enterprise-grade technology, Anthropic PBC has entered into a partnership with Indian tech leader Infosys to create sophisticated artificial intelligence solutions. This collaboration aims to serve diverse industries, with a primary focus on the telecommunications and financial services sectors.
According to a statement released by Infosys last week, the two companies will co-develop bespoke AI agents designed for specialized industry needs and specific business operations. By integrating Anthropic’s high-performance Claude models—including the specialized Claude Code—with Infosys’ Topaz AI suite, the partnership intends to help corporations automate intricate workflows and significantly accelerate software delivery timelines.
This alliance highlights the growing competition among global AI developers to capture the enterprise market as businesses increasingly seek tailored automation tools. The announcement follows Anthropic’s recent initiatives to embed its flagship AI coding agents within major Indian organisations, including the national carrier Air India and the global IT services provider Cognizant Technology Solutions.
