New Delhi, July 16 -- Revenue growth of Indian IT services companies is expected to remain muted at 1-3 per cent this fiscal, as artificial intelligence (AI)-driven disruptions, weak discretionary spending and continuing geopolitical uncertainties weigh on demand, according to a Crisil Ratings sector analysis.

The report said the industry's slowdown is likely to persist into the next fiscal as clients reassess technology spending and AI reshapes traditional business models.

"AI is no longer just a productivity lever for IT services companies; it is beginning to challenge their traditional revenue model. Rising adoption of AI-native solutions is intensifying pricing pressure, triggering deal renegotiations and slowing execution as client...