HCLTech generates $100 million from advanced AI, contributing nearly 3% to overall revenue

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HCLTech clocked $100 million in advanced AI revenue that accounts for nearly 3 percent of the company’s overall revenue, CEO and MD C Vijayakumar said at the company’s earnings conference for the second quarter ended September 30. The makes HCLTech the first Indian IT services giant to report its AI revenue.

Advanced AI revenue includes all the rapidly improving technologies like agentic AI, physical AI, AI engineering, AI factory etc. This, however, excludes classical AI, data and analytics services and services delivered using Gen AI and Agentic AI, Vijayakumar explained.

“Over the past few years we have made significant investments in building intellectual property, deepening partnership and strengthening our GTM (go-to-market) and delivery teams. These efforts are now showing results as we transition from AI pilot to AI monetisation phase,” Vijayakumar said.

HCLTech’s AI roadmap

HCLTech is taking a long-term view by proactively transforming its services even if it means “disrupting parts of the company’s existing revenue base”.

“This mindset keeps us agile, relevant and future ready,” he added.

“We have made continuous investments in differentiated intellectual property that accelerates and scales AI. While companies like OpenAI, hyperscalers continue to advance core intelligence layer, our opportunity lies in making that intelligence enterprise ready and impactful at scale,” Vijayakumar said.

HCLTech is working on developing IP (intellectual property) that powers transformation across IT, engineering and BPO services as per industry specific use cases on top of the intelligence layer. The Noida-headquartered IT major is expanding into new AI-led services which includes AI engineering, AI factory and AI advisory. It is also strengthening partnerships across tech stack with GPU providers and model and agentic AI providers.

When asked if HCLTech would take a capex heavy approach like rival Tata Consultancy Services (TCS) which plans to invest over $6 billion into building AI infrastructure and data centers over the next 5-7 years, Vijayakumar declined to comment, adding that the focus will be on building industry-specific use cases and accelerate existing intelligence for enterprise use.