Cost of using LLMs have dropped over 85% since early 2023, making more use cases viable: HCLTech CEO C Vijayakumar

Vijayakumar added that a large part of the Q3 deal wins that stood at $2.1 billion had something or the other related to generative AI embedded in it.

HCLTech CEO and MD C Vijayakumar said that the cost of using large language models (LLMs) and conversational artificial intelligence (AI) have dropped more than 85 percent since early 2023, helping IT services companies build more viable use cases as AI technology takes centre stage.

As of Q3, the company has reported a sizeable number of AI and generative AI deals, without divulging exact numbers.

Speaking at the company’s Q3 earnings conference, Vijayakumar said “Gen AI is getting more and more real. The cost of using LLMs and conversational models have dropped, by more than 85% since early 2023, making more use cases viable. We are witnessing increasing momentum in data, AI, and Gen AI opportunities. AI Force deployments and customer interactions in AI labs are increasing. Agentic AI is another big opportunity where we can enable our clients as they empower their clients with AI features.”

He added that a large part of the Q3 deal wins that stood at $2.1 billion had something or the other related to generative AI embedded in it.

“We are not calling out AI/ Gen AI deal pipeline separately. It’s highly intertwined with every aspect of our business. We have a plan to infuse AI/ Gen AI across all the services we deliver, which we have been calling service transformation programme. Our goal is to roll it out to at least 100 clients by the end of FY26. We already have 20 plus clients leveraging the AI platform,” Vijayakumar said.

His comments echoed the sentiments of his peers and industry leaders including TCS CEO K Krithivasan, calling AI and Gen AI a horizontal trend to be found across its deals.

Earlier on January 9, Krithivasan said, “Over a period of time, what you are likely to see are large deals where AI plays an important component. That may not be an AI project by itself, but there could be a large project where AI plays a very important component. So that's where I think it will directionally go.”

“I am finding it's becoming more and more mainstream. We stopped publishing the AI-specific numbers because it's becoming more pervasive. You find it everywhere,” he added.

TCS said that gen AI deals have started moving beyond just proof of concepts (PoCs) to production. The quantum of PoCs going into production is “slowly improving” from just 10-12 percent in Q2, he said.