New Delhi, June 12 -- The latest advancements in artificial intelligence, particularly Anthropic's newly launched Claude Fable 5 model, could accelerate productivity gains in software engineering while increasing revenue deflation risks for IT services companies, according to a report by Kotak Institutional Equities.

The brokerage said the new model represents a significant leap in coding and software development capabilities, raising concerns for firms with large exposure to application development and maintenance services.

"Claude Fable 5 increases AI disruption risks for IT services," the report said, adding that the model's "stronger improvement in software tasks and improvement in agentic software development capability increase re...