New Delhi, Nov. 15 -- Rapid advances in artificial intelligence could put more pressure on prices for traditional Indian IT services in the near to medium term, even as demand for new AI projects grows, Systematix Institutional Equities said in its second-quarter FY27 sector earnings review.

"Although the rapid model evolution may intensify deflation in the near to medium term, we expect new AI-led demand to outpace productivity-driven pricing and effort reductions over the long term," the brokerage said in its report.

As AI allows IT providers to complete the same work with fewer staff hours, customers can seek a share of those savings through lower contract prices. Systematix said AI-related pricing pressure on traditional services re...