Cognizant AI Chief Rejects Predictions of IT Services Decline Amid AI Boom
In Mumbai, Cognizant's chief AI officer, Babak Hodjat, has firmly dismissed fresh forecasts of AI disruption spelling the end for IT services. He pointed out that similar obituaries were written during the software era and again with the rise of SaaS, yet the industry has consistently adapted and grown.
Historical Resilience and Current Challenges
"We've been here before," Hodjat told TOI, emphasizing that premature announcements of IT services' demise have repeatedly proven wrong. "Each time, the need for engineering and customization remained. If anything, we are needed even more now." He explained that while generative AI and agentic platforms are reshaping enterprise technology, designing safe, scalable, and extensible systems is complex and requires expert intervention.
Clients often approach Cognizant already using AI tools, but they seek assistance in extending these technologies safely and identifying additional use cases. Hodjat remains optimistic, noting that "every time productivity increases, demand increases too," though he acknowledges rough patches driven by expectation mismatches.
AI as an Engineered Discipline, Not Magic
Hodjat likened the current AI phase to the dot-com boom, stating that expectations are high but the industry is still in an experimental stage. "The promise is clear, but translating that promise into scaled, reliable value is still a work in progress," he said. He recently received two US patents related to large language models, part of Cognizant's broader innovation push, which has secured 61 patents so far, with many focused on core AI technologies.
Cognizant operates AI Labs in San Francisco and Bengaluru, with a structured process for inventing and integrating innovations into platforms and client solutions. "These innovations aim to make AI more reliable, trustworthy, and powerful," Hodjat added. He believes market volatility in IT services stocks reflects expectation mismatches rather than structural decline, asserting that "AI is an engineered discipline" requiring proper architecture.
Internal Transformation and Future Outlook
Inside Cognizant, developers are increasingly collaborating with AI agents, and aggressive upskilling is underway across roles. In a recent internal coding event, 40% of participants were non-technical employees, highlighting the shift towards AI-empowered domain expertise. The company runs over 100 internal agents, handling more than 11 million transactions in three months, leading to reduced ticket volumes and increased productivity.
Hodjat concluded that for services companies, the path forward is clear: "There is no resistance. We are embracing it fully — investing, building, and re-architecting ourselves around AI. This isn't about survival. It's about leading in an engineered AI future."
