Wipro Sees Rising Global Demand for AI-Driven IT Services as Clients Move Beyond Pilot Projects

Davos, Switzerland | Jan 20 (GeokHub) Artificial intelligence is increasingly shaping the technology contracts global companies are awarding, with demand shifting from small-scale experiments to full-scale deployments, according to Wipro Chief Executive Srini Pallia.

Speaking on the sidelines of the World Economic Forum in Davos, Pallia said enterprise customers are now pursuing a mix of small, large and mega AI-focused deals as they integrate artificial intelligence more deeply into core business operations.

Rather than concentrating only on major contracts, Wipro is targeting opportunities across the spectrum, reflecting the uneven pace at which industries and markets are adopting AI technologies.

From AI Experiments to ROI Pressure

Pallia noted that corporate AI spending is entering a more accountable phase. While many organisations spent 2025 testing use cases and piloting AI tools, boards and senior executives are now demanding clear returns on investment.

According to Pallia, companies are no longer satisfied with productivity gains alone and are increasingly focused on how AI directly impacts revenue, efficiency and competitiveness.

Despite ongoing pricing pressure — driven by AI’s ability to reduce project timelines and shrink team sizes — Pallia expects the overall number of AI-related contracts to grow, particularly smaller, targeted projects.

Indian IT Sector Adjusts to a New Spending Cycle

India’s IT services industry, which generates roughly $283 billion annually, endured several quarters of weaker demand as global clients cut discretionary technology spending amid geopolitical and economic uncertainty.

That trend is now evolving. Rather than sharply increasing IT budgets, companies are reallocating spending toward cost-saving and productivity-enhancing technologies, with AI at the centre of that shift.

Pallia said AI-assisted software development can reduce costs by about 25%, especially in coding and testing, while delivering substantial efficiency gains. Over time, those savings are expected to generate new demand rather than shrink technology budgets.

Long-Term Bet on Artificial Intelligence

Wipro launched a three-year, $1 billion investment programme in 2023 to strengthen its artificial intelligence capabilities. The company now offers AI consulting alongside traditional IT services to help enterprises move from experimentation to scaled deployment.

Pallia said AI adoption will ultimately support long-term growth in technology services, even if short-term budget increases remain limited.