AI revenue estimated to touch above $10-12 billion in FY26

With clients now preferring scaled deployments of Artificial Intelligence(AI), the IT industry has been focusing on AI-driven projects. It is now estimated that AI revenue will be upwards of $10-12 billion in FY26.

NASSCOM on Tuesday released the findings of its Annual Strategic Review 2026, which said that technology demand remained resilient but shifted decisively towards measurable return on investment (ROI), efficiency, and outcome-led transformation. It is estimated that 5–6% of average company revenues are now AI-led. The report stated that the IT sector is expected to hit $315 billion in revenue in FY26, growing 6.1% y-o-y from $297 billion in FY25.

NASSCOM, which represents the country's $300 billion technology industry, said the estimated revenue will be led by broad-based expansion across key segments. "While AI-led transformation accelerated, the industry continued to be a net hirer, with headcount increasing by 2.3%, supported by large-scale skilling efforts: over 2 million professionals were upskilled in AI, including 200,000 to 300,000 in advanced AI skills," NASSCOM said.

It also pointed out that ‘Human + AI’ has become the operating model. NASSCOM Chairperson Sindhu Gangadharan said AI is accelerating productivity and changing the nature of work, but it is also expanding the opportunity frontier. As AI gets embedded across functions, we will see roles redesigned around outcomes, deeper specialisation, and significantly higher AI fluency.

The industry’s focus is on building ‘Human + AI’ teams, investing in continuous skilling, and converting efficiency gains into growth, creating new jobs and new career pathways even as delivery becomes more agile and more resilient.

NASSCOM President Rajesh Nambiar said the past year has been a reset for the global environment, but technology demand has remained resilient, shifting decisively toward productivity, measurable ROI, and scaled AI deployments. "India’s AI advantage is widening, making organisations more agile and outcome-led.

At the same time, growth engines like GCCs and ER&D are moving up the value chain, from scale to strategic ownership, reinforcing India’s role as a trusted partner built on cyber resilience and responsible AI," he added.

The report added that the industry is expected to add 1.35 lakh in FY26.

Commenting on specialised tech roles, Nipun Sharma, CEO, TeamLease Degree Apprenticeship, told DH that the country has the scale, producing nearly 1.5 million engineering graduates annually, but readiness for specialised roles remains uneven.

Positions in areas such as AI operations, cloud infrastructure, cybersecurity, and data engineering require applied exposure that many graduates do not receive through traditional coursework.

"The opportunity to fill 1 lakh specialised tech roles exists, but it depends on strengthening capability pipelines that emphasise hands-on learning, industry exposure, and faster skill alignment with emerging technologies. At the same time, continuous reskilling and upskilling of experienced engineers is equally critical, as technology cycles are shortening and existing talent must evolve alongside new roles," Sharma added.