Cos may up GenAI spending by half

will likely occur at the time of renewals when there is generally pricing pressure on IT services contracts and generative AI could add even more pressure,

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" he said in the note. However, a second set of analysts said GenAI will not be deflationary and that cost savings by clients will not result in lesser business for IT service companies.

"In our view, AI technology will serve as a competitive advantage to create new business opportunities and operating models," said Axis Capital analysts Manik Taneja, Sak-sham Savernya, and Rohit Thorat in a note dated 10 December.

"We expect the savings gained through leveraging new technologies to be reinvested towards ever more ambitious pursuits of tech innovation for better business," said the Axis Capital analysts.