AI fears shake India’s IT giants as hard truths hit software industry, $47 billion wiped off

India’s world-beating software services industry has been rocked by a stock market rout, with almost $47 billion wiped off valuations in the last few weeks amid mounting fears that fast-evolving artificial-intelligence tools could dramatically slash the amount of work outsourced by global clients.

This week, the pressure intensified after brokerage firm Jefferies released a bearish report warning that six leading companies – Infosys, TCS, HCL, LTIMindtree, Mphasis and Hexaware Technologies – could be hit by AI’s rapidly advancing capabilities. Jefferies suggested shares could fall by up to 33 per cent.