Generative AI Models Are Worried To Lowering Market Share And Prices For Indian IT Companies

J.P.Morgan stated that there was a threat from the AI ​​model. (photo: twitter @jpmorgan)

JAKARTA - Analysts from J.P. Morgan say that generative AI models like ChatGPT will slow market share growth and lower prices for Indian IT companies in the short term.

As generative AI implementation becomes more widespread, consulting firms such as Accenture and Deloitte will take over market share from Indian IT firms such as Infosys Ltd and Wipro Ltd in the short term, analysts from the securities firms said in a note to clients.

Generative AI could be a "deflation driver" in the short term in legacy services because they are price competitive, require staff retraining, and cause a loss of competitiveness, they added.

"ChatGPT is likely to slow legacy services the most and application services the least," said analysts at J.P. Morgan quoted by Reuters.

Artificial intelligence company OpenAI has captivated amateurs and industry experts alike with its ability to generate haiku, diagnose codes and answer questions while imitating human speech, which helped it secure a $10 billion investment from Microsoft Inc earlier this month.

Since then, other big tech companies like Alphabet Inc and China's Baidu Inc have rushed to announce their own generative AI developments.

JPM said that among Indian IT firms Infosys and Tata Consultancy Services may retrain staff more quickly than their smaller counterparts due to better recruitment infrastructure and graduate training.