IT companies step up GenAI investments as clients ready for paid POCs

However, GenAI has a margin optimisation implication for IT providers as they are also using it internally to cut down development times for client projects

Indian information technology (IT) services companies are ramping up their investments in generative artificial intelligence (GenAI) as clients are now willing to pay for early proof of concept (PoC) and collaborate closely with service providers to explore the potential of this technology (tech).

“We observe that clients of IT companies are allocating 1-3 per cent of their tech budgets as a one-time war chest to experiment with GenAI. This presents a significant opportunity for IT service providers to tap into this pool. Some clients have already commissioned paid PoC with providers, indicating that the time to act is now. Clients are