'Overly simplistic' to assume AI can replace IT services, says JP Morgan

Tech Mahindra

13/02/2026 10:08

** JP Morgan says "overly simplistic" to assume AI can automatically generate enterprise grade software and replace IT services companies

** Nifty IT index .NIFTYIT has corrected 10% since mid-Jan on fears around AI developments like Anthropic's Claude Cowork - brokerage

** However, IT services firms remain plumbers of tech world; services "plumbing" will remain relevant to work in enterprise context and reduce "AI slop" - brokerage

** AI will also create net new areas of work, as enterprise tech teams traditionally remain underfunded and AI will help address more work with same budgets - brokerage

** Nifty IT fell as much as 5% in early trading on Friday; closed 1.46% lower

** Nifty IT down 8.2% over the week; down 13.7% YTD

 (Reporting by Abhirami G in Bengaluru)

 ((abhirami.g@thomsonreuters.com))