AI revenues of $10-12 billion within reach of IT firms

The Indian IT services industry could reach double-digit AI revenues in FY26, but the trajectory will depend on whether artificial intelligence drives incremental spending or merely reshapes existing contracts, according to analysts and industry executives FE spoke to.

At the recent NTLF Summit hosted by Nasscom, the industry body estimated that AI revenues for IT firms in FY26 would exceed $10-12 billion, with overall sectoral revenue projected to grow 6.1% to $315 billion. The projections suggest AI is moving beyond pilots and proof-of-concepts into measurable revenue streams.