Tech Mahindra CEO: Anthropic AI scare is market overreaction
Tech Mahindra CEO: Anthropic AI scare is market overreaction
Tech Mahindra’s Mohit Joshi calls the Anthropic AI fears a market overreaction as Indian IT stocks slide after Claude’s updated legal tool.
Shares in Indian IT majors fell on February 4 after Anthropic unveiled an updated Claude with a new legal-services plug-in, reviving concerns about AI's impact on IT services and software companies. The move sparked a broad sell-off in Indian tech stocks, with ADRs of Infosys, TCS, and Wipro weakening and the sector tracking weakness on Wall Street.
Mohit Joshi, CEO and managing director of Tech Mahindra, dismissed the drop as a market overreaction. He argued that artificial intelligence represents a technology shift that should ultimately act as a tailwind for services and software firms, not a replacement. He emphasized that productivity gains from AI vary by environment and cautioned that the market’s fear could be overstated.
Joshi noted that the contagion appeared to spread beyond traditional IT services to SaaS players, reflecting investor nervousness about AI’s potential to disrupt the software landscape. The broader market also faced volatility, with the Sensex and Nifty moving on the latest AI headlines in a session shaped by global tech movements.
The developments came as Infosys reported a significant stock decline, with its market capitalization sliding by over Rs 54,000 crore to around Rs 6.31 lakh crore, underscoring the short-term pressure on Indian IT exporters. Despite the near-term pullback, industry watchers stress that the AI-era shift could eventually boost demand for consulting, integration services, and software development.
Analysts and company leaders alike are urging patience, pointing to ongoing AI-enabled efficiency gains and the long runway for IT services and software firms as AI tools mature and organizations scale their deployments.
