Is AI fear an overreaction? Ex-Infosys CEO Vishal Sikka explains the threat - and who will survive

Recent turmoil in Indian software stocks has sparked significant concerns regarding the potential for artificial intelligence to automate substantial portions of tech roles. Vishal Sikka, the former CEO of Infosys, acknowledges that while the disruption caused by AI is genuine, its effects will manifest gradually, contingent on the industry's responsiveness. In a conversation with CNBC-TV18, Sikka addressed the apprehensions surrounding AI's influence on employment and business models. He stated, "The disruption to knowledge work in software development through repetitive processes is undeniable. This disruption is indeed real, but it will take time to permeate across various sectors." Sikka, now the founder and CEO of Vianai, emphasized the vast potential of India's technology workforce, which comprises approximately 1.7 million individuals. He described this collective capacity as 'infinite'. "The primary question we face is the speed of adaptation—whether organizations can evolve before their current roles become obsolete," he remarked. Reflecting on the historical upheavals within India's tech landscape—including custom development, packaged software, the Y2K phenomenon, mobile computing, and cloud services—Sikka pointed out that the current pace of change is markedly different. "Our industry has flourished for 50 years and has weathered numerous disruptions. However, this time, the speed is staggering. Our cognitive framework is not equipped to handle exponential changes, and the rate of transformation we are witnessing is extraordinary, striking at the core of our operations," he explained. The future, according to Sikka, hinges on how swiftly companies can leverage these changes to their advantage. "The core challenge remains—can we adapt and turn this shift into a beneficial force faster than it erodes the legacy work we've been accustomed to? This is the critical equation we must solve." His comments come amid a significant downturn in global and Indian software stocks, precipitated by fears that AI could streamline complex enterprise workflows, thereby capturing a considerable portion of software budgets. The Indian IT index has seen a decline of about 15% in February, as markets react to the anticipated disruptions. Major indices like Sensex and Nifty fell over 1% on Friday, particularly affecting sectors such as metals, IT, and commodities, with TCS and Infosys witnessing nearly a 9% drop in the past week.