New Delhi, Sept. 10 -- Falling costs of artificial intelligence models and their expanding capabilities beyond software could accelerate AI adoption by enterprises, but may also increase pricing and deflation risks for India's information technology services industry, Kotak Institutional Equities said in a report.

The brokerage said recent AI model launches by Anthropic, OpenAI, Google and Meta indicate that improvements in software-related tasks at the cutting edge have been gradual, while the performance gap between leading models is narrowing.

At the same time, AI capabilities in areas such as science, business workflow automation, engineering design, computer use and cybersecurity are developing rapidly in some models, it said.

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