More AI-led pain ahead for IT as new tools threaten revenues, says Jefferies

Anthropic’s Cowork plug-ins highlight how AI could erode application services revenue, which accounts for 40%–70% of IT firms’ topline, Jefferies says, adding it sees "more pain ahead" for sector

IT services firms face mounting growth pressure as AI threatens to chip away at core application service lines, brokerage says

AI will drag on IT firms' revenue growth over the next 1–2 years, Jefferies adds, as deflation in legacy service revenues outweighs emerging AI-led opportunities

Nifty IT index .NIFTYIT flat on Thursday after 6% slide in the previous session, following rout in global software stocks; Nifty 50 .NSEI down 0.4%

YTD, IT index down 3.9% vs .NSEI 1.7% drop