New Delhi, April 12 -- AI models such as Anthropic's Mythos could pose disruption risks to the growth of India's IT services sector, according to a report by Kotak Institutional Equities.

The report said the model "exhibits a step-jump in benchmark performance across software engineering tasks" and added that it "raises near- to medium-term disruption risks for IT services," particularly for companies with higher exposure to application services.

The brokerage noted that improvements in AI-driven coding could translate into real business impact. "The realization of similar improvements in real-world scenarios risks turning our estimate of a 3-3.5% annual growth headwind for the industry... from prudent to practical," the report said.

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