IT industry will come back bigger and stronger, says Ramesh Damani amid AI fears

No significant fear of AI, but new winners and losers will emerge, says Ramesh Damani

• Veteran investors see AI as opportunity, not a major threat
• IT industry to rebound stronger post-AI disruption concerns
• India seen as potential global AI solutions provider

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Veteran market investor Ramesh Damani allayed investor fears over artificial intelligence on February 27.

"No significant fear Of AI, but new winners and losers will emerge," said Damani and News18 Rising Bharat Summit.

"IT industry will come back bigger and stronger, market is throwing baby with bath water. Industries and companies that adapt to AI-driven changes will succeed" added Damani while alluding to the 20% fall seen in IT stocks this month amid AI-led disruption fears.

"I think the tech industry will come back more stronger. Of course, there is something to fear. But there is no reason to be bearish," he said.

Another veteran investor Madhusudan Kela said he remains optimistic over the medium-to-long term about IT industry's prospects.

"Everyone has a view on AI. The pace at which the changes are coming. We need to be monitoring the changes. Technology has not made industry poorer. There will be clear winners and losers in this shift. Even within the IT sector, outcomes will depend on how well companies and people adapt to change. You can’t paint everyone with the same brush. The only concern could be in the short term some impact on employment. These are very dynamic changes, but I remain optimistic over the medium to long term," he said.

"We have a strong, highly skilled workforce, and many deeply knowledgeable professionals — something that was evident at the (recently concluded) AI Summit. The broad consensus there was that India has the capability to become a global AI layer and solutions provider," Kela added.

Meanwhile, another ace investor Vijay Kedia said opportunities can be found in proxy sectors for AI.

"I believe in the next 10-15 years, there will be a big opportunity coming in India but you will have to keep your eyes and ears open. This is a golden period for India," he said.