India's AI services revenue hits $12 billion as IT sector moves beyond pilots: Nasscom

India's IT industry is generating between $10 billion and $12 billion in annual revenue from AI services, Nasscom has said, with adoption having moved decisively beyond pilot projects into full-scale commercial deployment. The industry body put the headline figure at $12 billion, underscoring how quickly enterprise clients — both domestic and global — are paying Indian technology firms for AI-driven solutions.

The Nasscom assessment marks a pivotal moment for an industry that has historically derived the bulk of its revenue from traditional IT services and business process outsourcing. AI is now a distinct, growing revenue line, and the body said growth is set to continue as more organisations integrate AI into core operations rather than treating it as a supplementary experiment.

The announcement comes at a time when Indian IT majors and mid-cap firms alike are reorganising their delivery models, training large workforces in AI and generative AI tools, and pitching AI transformation as their central proposition to global clients. The shift is also intensifying competition, as companies scramble to build proprietary AI platforms and attract specialised talent.

For India's broader economy, the numbers validate the government's push to position the country as a global AI hub. With $12 billion already on the board, the sector's trajectory suggests AI services could become as foundational to India's export basket as traditional software outsourcing has been for three decades.