Infosys secures five-year AI deal worth $2 billion with existing strategic client, will provide automation-led development & modernisation

Infosys, a provider of technology services, announced on Monday, to enter into a framework agreement with one of its current strategic clients for offering  automation-led development and artificial intelligence services. As per  recent reports, the estimated target spend in the deal is said to be around $2 billion. 

In the wake of Infosys ' decision to invest big in AI, the company has not yet disclosed any further information on the name of the existing client. 

Infosys shares witnessed an increase over the last month

Infosys disclosed that the arrangement will also cover service modernisation and maintenance in the next five years. 

Apart from the current investment, the IT company has introduced Infosys Topaz, in May 2023. This new platform that combines data analytics and generative AI, utilises intelligent tools, platforms, and autonomous software engineering for business agility. Moreover, the platform aims to enhance efficiency across the organisation 

Over the past month, Infosys shares have increased by 10 percent, narrowing most of the year's losses. The company had 40 clients with annual revenue of $100 million or more during the quarter that ended on 31 March 2023, up from 38 clients in December 2022. 

Infosys joins the race of Wipro and TCS in AI development 

Wipro said last week that it was launching the ai360 service and that it will spend approximately $1 billion on AI over the following three years. The IT firm also disclosed that over the upcoming 12 months, it will train some 2,50,000 workers on the fundamentals and safe application of AI. The technology services company also provided information about offering customised and continuous training to employees in AI-focused roles.

Similarly, Tata Consultancy Services also announced plans to teach 25,000 engineers to get certified in Microsoft's Azure Open AI.