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AI fears overblown, says Cognizant exec
26 Feb
Summary
- AI tools won't replace IT services; clients need integration help.
- Companies still need expertise for deploying and scaling AI.
- Cognizant expects strong revenue growth due to AI adoption.
Fears surrounding new artificial intelligence tools replacing large IT services firms are considered "overblown" by Babak Hodjat, chief AI officer at Cognizant. He explained in a recent interview that clients continue to need substantial support for deploying and scaling AI technologies. Most enterprises are not yet capable of fully relying on a single, all-purpose AI agent and require help with engineering, integration, and governance.
Hodjat, who previously contributed to Apple's Siri, emphasized that mapping AI solutions to business needs is a complex task that cannot be automated entirely. Cognizant, with a significant portion of its workforce in India, has projected annual revenue exceeding Wall Street estimates, citing robust demand from businesses adopting AI. Competitors like Tata Consultancy Services and Wipro share this optimistic outlook, believing AI adoption will enhance demand for their services.
Despite ongoing AI-related job cuts in some sectors, such as WiseTech Global's planned layoffs, Cognizant remains confident. The company is actively increasing its AI code generation and has continued to hire graduates, indicating a focus on leveraging AI for growth rather than solely for cost reduction. Many of Cognizant's clients have experimented with AI agents but recognize the need for expert deployment within their existing systems to achieve tangible returns.
