AI slows growth for Infosys and keeps it afloat at the same time

Indian tech services giant Infosys has mixed news about AI.

In its most recent quarterly results late last week, the company revealed that it’s racked up 29 percent sequential growth in AI revenue, which now delivers 10.5 percent of Infosys’ incoming cash.

Those are far nicer numbers than the 1.5 percent year-on-year revenue growth Infosys reported for its second quarter.

“Growth was below our expectations. Volume was softer, and price increases were lower than anticipated amid high competitive intensity,” chief financial officer Jayesh Sanghrajka told investors. One reason for lower price increases was that customers expect Infosys to charge less when it uses AI, and those cost savings are now “baked in” to its multi-year deals.

CEO and managing director Salil Parekh also pointed to AI as one reason the cost of services is falling.

“I think what we see today is there is definitely some of our peers who are putting, I would say, more intense effort into the …