The Imperative AI Culture Shift Indian IT Needs

Artificial Intelligence (AI) is far from a novel concept. However, the advent of Generative AI (GenAI) has revolutionized the landscape, particularly within India’s $245 billion IT industry (as of 2024). Unlike traditional AI, which has predominantly been confined to specific applications and tasks, GenAI brings transformative potential that accelerates AI penetration across industries and use cases, influencing diverse aspects of work and life.
 
In short, GenAI doesn’t need a push anymore. With tailwinds from varied quarters, the democratization of this internet-like revolution is being driven by three critical factors: ecosystem readiness, consumerization, and operational impact. All of these are showing healthy signs of maturity.
 
For India's IT sector, embracing AI to remain competitive and relevant on a global scale is no longer an option—it's a necessity.
 
And the leaders know it well.
 
What are leading IT companies in India doing about GenAI?
 
The Indian IT industry is at the forefront of technological innovation, with leading companies developing advanced solution accelerators and platforms to keep pace with the rapidly evolving AI landscape. Many of these firms are leveraging cutting-edge Large Language Models (LLMs) to effectively scale Generative AI (GenAI). Additionally, they are integrating GenAI into service delivery processes to achieve significant productivity gains, while placing a strong emphasis on skill development to meet the growing demand for AI expertise. Some companies are already witnessing a remarkable 40% improvement in productivity across the entire Software Development Lifecycle (SDLC) as a result of their AI capability-building efforts.

Moreover, IT companies are forming strategic partnerships with major technology players to bring production-grade GenAI use cases to market. These collaborations span a wide range of partners, from startups to industry giants, and aim to solve complex customer challenges while driving the adoption of emerging technologies.

While the path to GenAI success is multithreaded through innovative solutions, advanced technologies, and strategic partnerships, it is ultimately the people and culture of these IT firms that lie at the heart of these success stories.

Culture yes, but AI first
 
It’s well known that a people-centric approach ensures technological advancements are complemented by an adaptable and motivated workforce. But without making the culture AI-first, companies don’t stand a chance of succeeding.
 
For one, GenAI is running its own disruption game within companies. It is not only revolutionizing IT services by transforming business processes but also changing traditional organizational structures. As AI-first principles permeate organizations, there is a marked shift from conventional hierarchical pyramids to smaller, highly impactful teams. This transition reduces the reliance on middle management, as many project management tasks become automated. It also democratizes decision-making, empowering more team members and fostering a leaner organizational structure.
 
While HR plays a pivotal role in fostering an AI-first culture within an organisation, the onus is also on the company’s leadership. Today’s leaders need to actively engage in continuous learning of new technologies like AI and must lead by example. Furthermore, leadership's involvement in building an AI-first culture goes beyond just endorsing new technologies. It involves championing ethical AI practices, promoting diversity and inclusion in AI development, and fostering a supportive environment where employees feel empowered to explore and innovate with AI.
 
A Deloitte study reveals that 94% of executives and 88% of employees recognize the crucial role of corporate culture in a company's success. Hence, ensuring that the organizational culture supports the adoption and use of Generative AI is crucial. More so than any other investment!
 
By embedding GenAI into their core operations, forward-thinking IT service organizations can realize unprecedented outcomes. Cultivating such a culture binds these efforts, ensuring a unified approach to leveraging GenAI for a competitive advantage.

Sukamal Banerjee

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Sukamal Banerjee is CEO of Xoriant.