JP Morgan said AI not a threat to India’s IT services sector, as artificial intelligence will act as a tool to expand enterprise output rather than replace vendors. The Asia Pacific Equity Research team shared this view in a note released on February 14, 2026.
The report said enterprise technology teams often work with limited budgets. Because of this, AI not a threat to India’s IT services is reflected in how companies may use AI to handle more tasks without cutting service providers out of the cycle.
What changed in AI not a threat to India outlook
JP Morgan noted that investors have shown concern about AI reducing revenue growth for Indian IT firms. The Nifty IT index fell 10% over the past month, while the broader Nifty index remained flat.
The note argued that it is too simple to assume AI can automatically replace enterprise-grade software development and integration work delivered by IT services companies.
AI trust and reliability driving new work areas
The report highlighted demand in areas such as legacy code modernisation, customised SaaS rewriting, and building AI agents for business operations. It also pointed to the need for stronger AI trust and reliability systems as enterprises deploy new tools.
JP Morgan said these projects require services expertise to function inside complex corporate environments. It described IT firms as the “plumbers of the tech world,” supporting long-term technology cycles.
How AI not a threat to India fits past tech shifts
JP Morgan compared AI adoption to earlier shifts such as offshore labour, enterprise software, and cloud computing. In each cycle, new tools expanded workloads rather than shrinking opportunities for service providers.
The report said bearish views often focus on AI eating into Software-as-a-Service markets. However, it maintained that bespoke AI deployments will still depend on Indian IT firms for execution and integration.
The note concluded that AI not a threat to India remains a central argument as enterprises balance productivity goals with the need for specialised IT services.
