Mid-sized IT services companies lead AI charge with new investments

As Artificial intelligence gains currency as a tool to help businesses improve their operations, India's mid-sized software service providers are jumping at the opportunities the new technology promises. Mid-sized information technology companies, including LTIMindtree Ltd, Mphasis Ltd, and Persistent Systems Ltd, are investing in new-age technologies such as AI agents in order to make themselves future-ready by building AI capabilities and gaining market share in the new technology. A divergent approach to AI investments These investment efforts by mid-cap software companies are in sharp contrast to their larger peers including Tata Consultancy Services Ltd, Infosys Ltd, HCL Technologies Ltd, and Wipro Ltd, which have so far looked at building AI technology in-house, staying away from investments in companies providing AI tools. While LTIMindtree, which is India’s sixth-largest software services company, is looking at agentic AI solutions, peer Mphasis made a similar stride to enhance user experience and conversational AI-driven automation. “Their mature frameworks and data privacy management platform provide a scalable foundation to ensure this new capability is platform-driven and embeds governance from the outset, which is now critical for successful AI implementations," said Sandeep Kalra, chief executive of Persistent, in a press release dated 30 September.