**HCLTech Reports Strong Growth in AI Revenue Amid Strategic Shifts**
HCLTech’s management announced on Monday that the company generated $146 million from advanced AI technologies in the third quarter, marking an impressive 46% growth compared to the previous quarter. CEO C. Vijayakumar elaborated on the company’s AI initiatives on Tuesday, emphasizing the importance of sharing generative AI revenue to provide stakeholders with insights into HCLTech’s future readiness.
When asked about the continued quantification of advanced AI revenue, Vijayakumar stated, “We are very focused on our AI initiatives, including physical AI and our AI Factory, which are integral to our solutions. We believe in reporting these figures as they offer a clear view of the new areas we are exploring.” He noted that while transforming existing services with AI is essential, it does not count as AI revenue since it is a prerequisite for maintaining client relationships.
Reflecting on the impact of AI on deal renewals and bidding, Vijayakumar acknowledged that the company had anticipated potential deflation in deal renewals due to AI. However, he highlighted a proactive approach in adopting generative AI, allowing HCLTech to share some savings with clients. “This strategy has energized our clients and helped us expand our wallet share,” he explained, noting that productivity gains from AI have contributed to this trend over the past several quarters.
Despite revising the upper and lower ends of its IT services guidance, HCLTech’s product business appears to be growing at a slower pace. Vijayakumar confirmed that services are outpacing product growth, suggesting that the impact of generative AI may be more pronounced in the services sector.
In conclusion, HCLTech’s strategic focus on AI technologies is not only driving revenue growth but also reshaping client relationships and service offerings, positioning the company for future success in a rapidly evolving market.
**FAQ**
**What is HCLTech’s recent performance in AI revenue?**
HCLTech reported $146 million in AI revenue for the third quarter, reflecting a 46% growth from the previous quarter.