‘Indian companies aren't yet at the cutting edge of AI research’: Roshni Nadar Malhotra, Chairperson of HCLTech

Roshni Nadar Malhotra, Chairperson of HCLTech, shared insights on AI’s transformative role within Indian tech companies during an exclusive conversation with Rahul Kanwal, Executive Director of Business Today, at the World Economic Forum in Davos, Switzerland. She discussed how AI is deeply integrated into HCL's business operations, contributing significantly to its revenue generation and future growth.

Reflecting on the state of AI in India, Roshni observed that while Indian companies are focusing on practical AI use cases, they aren't yet at the cutting edge of AI research. She argued that for India to lead in AI, investment in academic institutions is vital. Cutting-edge AI solutions typically emerge from top universities, which then drive commercial innovation.

When speaking about HCL’s efforts to leverage AI, Roshni emphasized that the company’s current deal pipeline is the largest it has ever had. She noted that while AI is embedded in HCL's offerings, it isn't typically highlighted separately, as it plays a key role in broader customer goals, such as digitization and cost optimization.

Roshni said HCL's AI strategy is structured around four key areas: AI Force (which accelerates software development), AI Foundry (focused on data modernization), AI Labs (a global network of innovation hubs), and AI Engineering (specializing in AI chip design and semiconductor innovation).

She elaborated that AI Force streamlines the software development lifecycle, benefiting engineers by automating parts of the coding process. This not only reduces time by 60-70% in some verticals but also allows engineers to focus more on design and applications. Roshni further mentioned that HCL has committed to upskilling 50,000 engineers on AI platforms to equip them for the evolving technological landscape.

Addressing the issue of job cuts, she clarified that any slowdown in hiring was more due to external demand conditions than AI-driven changes. She stressed that AI is enhancing jobs, not replacing them, by upskilling engineers and boosting productivity.

Roshni highlighted the role of AI Foundry in helping customers with legacy infrastructure modernize using data as a central element. She also spoke about AI Labs, a network of global innovation hubs across California, New Jersey, London, Munich, India, and Singapore, where HCL collaborates on solutions across industries such as financial services.

Furthermore, she discussed AI Engineering as crucial to advancing semiconductor innovation, particularly in AI chip design, which plays a significant role in HCL's ERS business.

Roshni also addressed the broader conversation around the H-1B visa issue, noting that the company has about 30,000 employees in the US, with 80% of them being local hires. She emphasized that while HCL relies on H-1B visas for a small portion of its workforce, the overall dependency on this visa has decreased, with many companies establishing major centers in India to tap into the country’s talent pool.

Regarding AI’s impact on India’s BPO industry, Roshni acknowledged that automation is likely to change the landscape. However, she believes that companies will innovate their business models to adapt, as evidenced by HCL's transition of its BPO services into a broader digital process outsourcing offering. She emphasized that AI will lead to the creation of more specialized, high-skilled jobs, but companies and academic institutions must address the challenge of skilling the workforce to meet these demands.

On the topic of HCL's future order pipeline, Roshni forecasted increased spending on data modernization, infrastructure updates, and AI-integrated solutions. Despite some concerns, she believes that AI adoption will take time, similar to the slow migration to cloud computing in past years. As some companies advance in their AI journeys, others remain cautiously optimistic, but the key for IT services and software companies is to be poised to capture the opportunities when they arise.