AI impact on IT revenue to be more than estimated: Kotak

Indian IT service providers could face a 3.0-3.5% fall in revenue in the next two fiscal years, compared with the earlier estimate for a 2.0-3.0% hit, because of enterprises adopting artificial intelligence tools and automation faster than previously expected, according to Kotak Institutional Equities. The brokerage, however, predicts the industry’s long-term relevance to remain intact.