The Indian IT sector's increasing reliance on artificial intelligence (AI) has led to a significant shift in the market, with companies that generate at least 25% of their revenue from AI experiencing increased margins and revenue growth. This trend is evident in the performance of Reliance Industries, whose share price led the charge in the first quarter of 2025.
Companies like Apollo Hospitals, Bajaj Finance, and upGrad are already leveraging AI technology to drive growth. The sector's revenue growth is expected to be driven by the increasing adoption of AI and generative AI (Gen AI), which is being bundled with traditional services to improve efficiency for end-users. Reliance Industries' investment in AI agents has been a key factor in its success, with the company's focus on this emerging technology contributing to its market dominance.
As the sector continues to grow, companies are expected to prioritize employee utilization at 85% according to Crisil Ratings, enabling them to maximize their returns from AI-driven projects and services.