Indian IT firms advised to invest in AI challenges

Indian IT firms generated nearly $20 billion in free cash flow during the 2023-24 financial year, with over 75% returned to shareholders. Experts warn that the sector faces challenges from AI and slow growth, disrupting traditional revenue models. Industry leaders suggest that companies should consider using part of their cash flows as risk capital to invest in new technologies and global capabilities. This shift could help them adapt to changing market conditions and explore new opportunities. Experts emphasize the need for a balance between innovation and shareholder returns. They recommend strategic investments in infrastructure and next-generation companies to ensure long-term growth and sustainability in a rapidly evolving landscape.