Vishal Sikka, founder of Vianai, warns that artificial intelligence will dramatically disrupt India's IT services industry, urging companies to reinvent their business models to stay competitive in the AI era.

His comments come amid ongoing impacts of AI on traditional service offerings, emphasizing the need for Indian tech firms to adapt quickly.

Sikka highlights that AI will significantly alter the tech sector, advocating for strategic shifts to leverage AI's potential.

He stresses the importance of transitioning traditional projects to AI-enhanced models, noting that AI can reduce project team sizes and impact margins depending on platform ownership.

The AI landscape in India is intensifying with global players like OpenAI launching affordable, localized solutions such as ChatGPT Go, priced at ₹399 per month, targeting students and digital users.

Microsoft India is investing heavily in AI and cloud infrastructure with a $3 billion commitment and plans to train 10 million people, underscoring the sector’s growth potential.

Sikka recalls his early support for AI funding, including a $3 million donation to OpenAI in 2015, highlighting the need for new business models amid margin pressures.

He sees AI as a tool to simplify IT complexity and create millions of jobs, empowering business users to work faster and more efficiently.

Sikka underscores the strategic importance of owning AI platforms, citing Infosys' 2015 investment in OpenAI as an example of supporting foundational AI efforts.

Clients across sectors such as banking, retail, and healthcare are exploring AI-driven solutions, compelling Indian IT service providers to adapt rapidly.

Sikka predicts a transition from traditional projects to AI-focused deals, requiring new technological and economic models to sustain margins and deliver value.

India's tech sector stands at a crossroads, facing risks of disruption but also opportunities for growth through innovation and embracing AI.

Challenges include declining demand for traditional programming and testing, raising concerns about entry-level employment in Indian IT giants like Infosys, TCS, and Wipro.

This shift has sparked a price war among tech giants and concerns for startups, emphasizing the urgent need for Indian companies to innovate and adapt to AI advancements.