AI transition to be painful for IT industry as it involves humans: HCLTech CEO

AI's Painful Path for IT Workers

C. Vijayakumar, the managing director and CEO of HCLTech, one of India's leading IT services giants, has sounded a cautious note on the artificial intelligence revolution sweeping through the technology sector. Speaking at the Nasscom Technology and Leadership Forum in Mumbai, he described the ongoing transition as uniquely difficult because it fundamentally involves people. Unlike previous tech shifts such as Y2K or the move to cloud computing, this one demands a deep reinvention of skills and roles across the workforce.

Vijayakumar emphasized that while AI promises to boost efficiency and speed up processes dramatically, the human element makes the change messy and demanding. Enterprises are grappling with complex legacy systems that can't simply be swapped out for shiny new AI tools. There's a noticeable gap between rapid technological advancements and their practical deployment in real-world business environments, creating hurdles that require careful navigation.

He dismissed recent market jitters, including sharp sell-offs in IT stocks, as exaggerated reactions that overlook the enduring value of domain expertise and the ability to handle intricate tech architectures. For an industry that employs millions and generates massive revenue, this isn't the end but a pivotal moment for evolution.

Reskilling Emerges as the Key Challenge

At the heart of Vijayakumar's message is the urgent call for massive reskilling efforts to turn the workforce into AI super-users. He stressed that every engineer needs to master these tools to deliver up to four times the productivity, transforming routine coding tasks into faster, more innovative outputs.

"I would say this transition (brought by AI) is different from the other transitions. It's going to be painful because it really involves people... we need to focus tremendously on reskilling and reskilling is all about how can we get every one of our engineers to really become a super user of AI."

HCLTech itself is investing heavily in intellectual property to bridge the adoption gap, focusing on scalable AI solutions that deliver tangible business results. The CEO highlighted that the real opportunity lies in layering AI intelligently over existing processes—using deterministic automation for predictable tasks and adaptive AI for those needing human-like judgment. This approach ensures reliability while fostering new roles in oversight, quality assurance, and creative problem-solving.

Looking ahead to 2026, success will pivot from pure innovation to flawless execution, including robust governance, data management, and workforce readiness. Companies that get this right will harmonize modernization with operational stability, turning potential disruptions into competitive edges.

Opportunities Amid the Disruption

Despite the challenges, Vijayakumar is optimistic about the IT sector's future, viewing AI as a massive inflection point that could redefine the industry over the next five to ten years. Tech services firms, with their deep enterprise experience, are well-positioned to capture value by helping businesses integrate AI into their core operations.

He pointed to ongoing global trends, like advancements in physical AI combining robotics and intelligence, which could spawn trillion-dollar markets by the end of the decade. Partnerships, such as HCLTech's collaboration with Guardian Life to overhaul systems using generative AI platforms, exemplify how firms are already accelerating transformations.

Investor concerns may be overblown, but the sector must adapt swiftly. While some tech layoffs have grabbed headlines as AI automates tasks, the complexities of mainframe modernizations and custom implementations ensure human expertise remains vital. Vijayakumar envisions a blended talent model where reskilling empowers people to work alongside AI, not be replaced by it, paving the way for sustainable growth.

This transition, though painful, positions the Indian IT industry—which powers a nearly $300 billion ecosystem—to lead in the AI era, provided it invests in people and execution.

In summary, HCLTech's CEO paints a picture of a tough but promising AI journey for the IT world, underscoring reskilling, human-centric adaptation, and execution as pathways to seize emerging opportunities while navigating the people-driven pains of change.