Infosys, a global leader in digital and IT services is making significant strides in generative AI by developing innovative solutions tailored to meet diverse industry needs. At the forefront of these advancements are four small language models, which the company has built to enhance capabilities in banking, IT operations, cybersecurity, and enterprise applications. These efforts underline Infosys’ commitment to delivering transformative solutions without engaging in what CEO and MD Salil Parekh terms “AI washing.”
Real Generative AI Work: Insights from Salil Parekh
“We are very clear about what we are doing with generative AI,” said Parekh. Unlike some industry players, Infosys focuses on authentic generative AI initiatives. “In generative AI, we have built four small language models for banking, IT operations, cybersecurity, and broadly for enterprises,” he explained, adding that these models leverage proprietary data to provide tailored solutions.
Infosys is currently working on over 100 AI agents, many of which are already operational. These agents are designed to address specific client needs, such as reducing task durations from 18 days to just eight. Parekh also noted that some clients are interested in developing their own small language models, further showcasing the versatility of Infosys’ AI offerings.
Robust Financial Performance and Strategic Growth
The company’s Q3 FY25 financial results highlight its strong performance, with a revenue of $4.94 billion, reflecting a year-on-year growth of 6.1% in constant currency terms. Net profit for the quarter stood at $804 million, emphasizing Infosys’ robust financial health.
Infosys also secured $2.5 billion in large deal total contract value (TCV), with 63% of these deals being new, marking a sequential growth of 57%. This success is attributed to the company’s enterprise AI capabilities, particularly in generative AI and agent-based frameworks.
“We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction,” Parekh said. This has led to a strong pipeline of large deals and an optimistic outlook for future growth.
Generative AI and Industry-Wide Adoption
Infosys’ focus on generative AI aligns with a broader trend among Indian IT firms. Competitors like TCS, HCLTech, and L&T have also highlighted their advancements in generative AI during recent earnings calls. However, while specifics on revenue from these initiatives remain undisclosed, the emphasis on AI innovation is unmistakable.
For example, TCS has reported significant progress in a drug discovery project, identifying 1,300 molecules and narrowing them down to 12. Similarly, HCLTech aims to integrate AI services into 100 clients by FY26. Infosys distinguishes itself by integrating generative AI into client-specific solutions, emphasizing practical and scalable implementations.
Expanding AI Ecosystem and Partnerships
Infosys is making strategic moves to bolster its AI ecosystem. The company recently launched a Google Cloud Centre of Excellence at its Bengaluru campus, aiming to drive enterprise AI innovations. Additionally, Infosys’ collaboration with Meta on the Llama stack further underscores its commitment to leveraging cutting-edge AI technologies.
Notably, Infosys is integrating Llama models with its in-house AI platform, Infosys Topaz, to develop tools like a document assistant that streamlines contract reviews. These advancements are complemented by the adoption of GitHub Copilot, enabling developers to generate nearly a million lines of code every few weeks.
Enhancing Client Experiences with AI-Driven Innovations
Infosys’ dedication to AI innovation extends beyond enterprise solutions. In partnership with Tennis Australia, the company introduced AI-driven features for the Australian Open 2025. This initiative marks a significant milestone in their collaboration to enhance the tennis experience through technology.
Building an AI-First Future
As Infosys transitions to becoming an AI-first company, its efforts to develop small language models and AI agents demonstrate a clear focus on delivering business value. By addressing industry-specific challenges and fostering partnerships, Infosys is not only setting benchmarks in generative AI but also enabling clients to unlock new potential.
Parekh summarized the company’s vision as follows: “Small language models provide clients with a powerful tool, allowing them to build business logic on top of it and unlock new potential.” With its strategic focus and robust financial performance, Infosys is well-positioned to lead the next wave of AI-driven transformation.
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