India is increasingly becoming a major AI services hub for US technology giants, driven by a large talent pool, cost advantages, and strong digital infrastructure. Global firms are expanding AI research, development, and support operations in India to scale products faster. Analysts said this shift could boost high value tech employment, though competition and skill upgradation remain critical for sustaining long term growth.

Anthropic’s aggressive push into generative AI is raising concerns among analysts about revenue risks for India’s IT services firms. Faster automation and client adoption could pressure billing rates, reduce project sizes, and shift spend toward platforms. While demand for AI integration persists, analysts warn near term growth visibility may weaken as clients reassess budgets, vendor mix, and pricing amid rapid technological change globally over time.