TCS, Infosys: Does generative AI pose risks to the IT services industry?
IT Services theme looks attractive to Kotak Institutional Equities. The brokerage holds a ‘Buy’ rating on HCL Technologies, Infosys, Rategain and Tech Mahindra.
- May 2, 2023,
- Updated May 2, 2023 12:58 PM IST
Do you know ChatGPT, which is a generative artificial intelligence (AI), reached 100 million monthly active users in just 2 months, 4.5 times faster than Tiktok and 15 times faster than Instagram? This shows the popularity of generative AI tools among users in the present world. Before going ahead, one should understand that generative artificial intelligence is a subset of AI that automatically generates text, code, images and videos among others.
In the last few years, the capabilities of generative AI have improved by leaps and bounds across a wide range of applications. Brokerage Kotak Institutional Equities believes the release of ChatGPT to the public was an inflection point in its adoption. Now, several generative AI tools and use cases are emerging on a daily basis and hold promise to make a significant impact across industries.
The brokerage in a detailed research report explained that research from AI platform providers and IT companies indicates that generative AI and associated tools can provide a large boost to developer productivity.
“In our opinion, the larger impact will be in development-related activities, while the impact on collaboration-related activities will be relatively less. We estimate 25 per cent savings in time for a developer for the same set of tasks on a typical workday, which translates into a 33 per cent increase in productivity,” Kotak said in a report.
IT Services theme looks attractive to Kotak Institutional Equities. The brokerage holds a ‘Buy’ rating on HCL Technologies, Infosys, Rategain and Tech Mahindra. On the other hand, it has a ‘Reduce’ rating on LTIMindtree and Wirpo. Kotak Institutional Equities has an ‘Add’ rating on TCS and Mphasis and a ‘Sell’ call on L&T Technology Services.
Of late, shares of IT majors underperform the benchmark equity indices in the domestic stock market due to the ongoing slowdown in the global economies.
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Do you know ChatGPT, which is a generative artificial intelligence (AI), reached 100 million monthly active users in just 2 months, 4.5 times faster than Tiktok and 15 times faster than Instagram? This shows the popularity of generative AI tools among users in the present world. Before going ahead, one should understand that generative artificial intelligence is a subset of AI that automatically generates text, code, images and videos among others.
In the last few years, the capabilities of generative AI have improved by leaps and bounds across a wide range of applications. Brokerage Kotak Institutional Equities believes the release of ChatGPT to the public was an inflection point in its adoption. Now, several generative AI tools and use cases are emerging on a daily basis and hold promise to make a significant impact across industries.
The brokerage in a detailed research report explained that research from AI platform providers and IT companies indicates that generative AI and associated tools can provide a large boost to developer productivity.
“In our opinion, the larger impact will be in development-related activities, while the impact on collaboration-related activities will be relatively less. We estimate 25 per cent savings in time for a developer for the same set of tasks on a typical workday, which translates into a 33 per cent increase in productivity,” Kotak said in a report.
IT Services theme looks attractive to Kotak Institutional Equities. The brokerage holds a ‘Buy’ rating on HCL Technologies, Infosys, Rategain and Tech Mahindra. On the other hand, it has a ‘Reduce’ rating on LTIMindtree and Wirpo. Kotak Institutional Equities has an ‘Add’ rating on TCS and Mphasis and a ‘Sell’ call on L&T Technology Services.
Of late, shares of IT majors underperform the benchmark equity indices in the domestic stock market due to the ongoing slowdown in the global economies.
Also Watch: Adani Green Energy shares hit upper circuit after Q4 profit triples; other Adani group stocks in focus
Also read: Titan Company to share Q4 results on Wednesday. Can Rs 12,400 crore Jhunjhunwala stock bet deliver?
Also read: M&M Financial shares surge 7%, hit fresh 52-week high; analysts see further upside