Davos 2026: AI-driven productivity may deliver 3–5% growth without adding staff, says HCLTech CEO C Vijayakumar

During the 2026 World Economic Forum in Davos, C Vijayakumar, the CEO and Managing Director of HCLTech, provided a fresh outlook on the impact of artificial intelligence (AI) on the job market. Instead of the common narrative surrounding job losses due to AI advancements, Vijayakumar emphasized its potential to enhance productivity and create new revenue streams within the IT sector. He stated, "I think some amount of growth, maybe 3 to 5%, is possible without having to add people. By really amplifying the capability of the people, you can deliver 3 to 5% growth without needing to add headcount." This perspective shifts the focus from fear of job loss to the possibilities of leveraging existing talent more effectively. Vijayakumar also discussed the evolution of job roles in the age of AI, suggesting they will become more 'agentic.' He explained that the integration of AI will allow jobs to require less physical assistance, stating, "Today, it’s very people-intensive. The way AI is evolving, it will become a lot more agentic and really amplify the potential of people to deliver more, but with a significantly smaller workforce." Furthermore, he introduced the concept of Physical AI, which he believes could transform various industries by effectively connecting software intelligence with real-world applications. He noted that sectors like facilities management, remote surgery, and safety in hazardous environments can greatly benefit from these advancements. As companies continue to develop AI with greater autonomy, the potential for systems that can operate with minimal human intervention is rapidly becoming a reality. Vijayakumar's insights shed light on a future where AI not only disrupts but also enhances the workforce dynamics.