IT clients are keen to adopt AI technology, but the high cost is causing them to take a cautious approach, according to Satish HC, executive vice-president and co-head of delivery at Infosys. Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services.

Clients are prioritising cost reduction projects, such as strengthening cybersecurity, which may delay the scaling up of AI initiatives. The Indian IT sector is expected to grow by a modest 3.8% to$253.9 billion by March 2024, but economic uncertainty and inflationary pressures are leading clients to cut spending and defer decision-making.

Some companies are unprepared for scaling up AI due to data readiness issues, while others are rapidly embracing the technology for its potential opportunities. Despite challenges, Infosys remains optimistic about AI and sees itself as an 'AI-first' company. Satish HC believes that 2024 could be a pivotal year for establishing a strong foundation for AI development. The Indian AI market is projected to reach$17 billion by 2027, with an annual growth rate of 25-35%. However, Satish HC does not expect clients to overspend on AI investments, especially with upcoming elections in various countries.