Threat to large IT firms ‘overblown’, Cognizant’s AI chief says amid Anthropic-driven disruption

Fears that new artificial intelligence tools could replace large IT services firms are “overblown” as clients still need help deploying and scaling the technology, Babak Hodjat, chief AI officer at Cognizant, told Reuters in an interview.

Automated AI tools from startups such as Anthropic have stirred concerns about disruption in the business models of ‌software and services ⁠firms ⁠globally, including India’s traditionally labour-intensive IT services industry.

Enterprises are far from being able to rely ​on a single, all-purpose AI agent, said Hodjat, adding that most clients still need help ​engineering, integrating, and governing AI systems.