Tata Consultancy Services (TCS), Infosys and Wipro have collectively deployed approximately 300,000 Copilot AI licenses across their workforce, representing a doubling from 150,000 licenses at the end of December 2025. According to Microsoft's latest release, this deployment covers a little over a fourth of the combined 1.15 million workforce of these three companies, which reported over $60 billion in cumulative revenue last year. As per Business Standard, Nifty IT gained 2 per cent at 29,709.4 as of 9:28 AM, significantly outperforming NSE Nifty50 which was up 0.18 per cent at 23,589.7. Judson Althoff, chief executive of Microsoft Commercial Business, noted that at this scale, the impact of AI is no longer measured solely by time saved or productivity gained—it is defined by how organizations operate, compete, and grow.
Infosys and Wipro have achieved approximately 91% and 95% active monthly usage rates respectively for their Copilot users, while 86% of Copilot-licensed associates at TCS use the tool in daily work for internal HR and sales functions, as well as external software development, maintenance and coding. According to Microsoft's release, Infosys CEO Salil Parekh emphasized that "the real opportunity with AI lies in how deeply it is embedded into everyday work," while TCS CEO K. Krithivasan described embedding Agentic AI as "an integral part of building an AI-first culture and shaping Human + AI operating model of the future." Wipro CEO Srini Pallia stated that "at Wipro, we are embedding AI into everyday work to create real enterprise advantage—unlocking productivity, sharpening execution, accelerating innovation, enriching client experience, and delivering meaningful business outcomes for our clients."
According to reports from Business Standard, Nifty IT gained 2 per cent at 29,709.4 as of 9:28 AM, significantly outperforming NSE Nifty50 which was up 0.18 per cent at 23,589.7. CLSA's research note suggests that fears of an AI-driven collapse in software-as-a-service demand may be overblown, pointing to robust guidance and earnings performance across major SaaS players in the latest quarter. The brokerage's latest analysis indicates that current guidance from SaaS companies and consensus earnings estimates remain supportive, with recent software earnings do not support fears of an AI-driven slowdown, with CLSA finding little evidence so far that artificial intelligence is affecting demand across major software providers. Arbind Maheswari of BofA Securities told ET Now that global investor flows are increasingly concentrated around one dominant theme: technology and artificial intelligence, noting that "there are people who believe that Indian IT services' whole business model is put to question by the AI trade. The other side is that IT services companies will evolve and adapt and they have enough cash flow, they have resilience, and they have shown this in the past where there were threats that seemed existential for the IT services space."
As reported by Business Standard, CLSA found that most SaaS companies have either maintained or increased their revenue and margin guidance for the upcoming fiscal year and beaten consensus earnings per share (EPS) expectations in the latest reported quarter. This performance implies no visible negative impact of AI on SaaS demand yet, contradicting earlier predictions of a 'SaaSpocalypse' that would hollow out demand for software-as-a-service platforms. Salesforce's first-quarter FY27 results highlighted accelerating AI adoption, with the company processing 2.8 trillion tokens, more than doubling sequentially, while agentic work units (AWUs) rose 111% QoQ to 3.8 billion. AgentForce customers in production increased 50%, with global system integrators playing a key role in integrating multiple APIs into the model context protocol (MCP) layer that connects with frontier AI models. CLSA noted that while Salesforce's overall workforce has expanded, most hiring has been concentrated in sales, with engineering headcount remaining largely unchanged over the past two years due to AI-driven productivity gains.
Phil Fersht, chief executive of Massachusetts-based HFS Research, indicated that the biggest impact of Copilot would be in productivity acceleration, not in software product innovation, with developers generating code faster, consultants producing deliverables more efficiently, and analysts summarizing information quicker. Anushree Verma, senior director analyst at Gartner, noted that getting these licenses is not about reducing human workforce or mere efficiency measurements, but training as many engineers as possible on Copilot for IT services firms to adapt to changed work processes. Fersht added that large-scale adoption at Indian IT firms is expected to boost Microsoft's revenue and ensure AI becomes deeply embedded in service delivery, strengthening Microsoft's position as the default enterprise AI platform among thousands of enterprise customers globally. Domestic brokerage Nuvama Institutional Equities has also pushed back against the bearish narrative, arguing that "We see no existential threat from Gen-AI" and that enterprises will continue to require system integrators to customize plug-and-play AI and software solutions for their highly complex legacy technology environments. In February, Tata Group entered partnerships with Anthropic for several thousand employees to access premium ChatGPT models, while Infosys announced partnerships with Anthropic for AI software development across telecommunications, financial services, and manufacturing sectors using Claude platform.
