New Delhi, March 19 -- The IT sector has not witnessed any deflationary impact in the fourth quarter of FY26 so far, either from artificial intelligence (AI) developments or the ongoing US-Iran conflict, according to a report by CLSA.

The report stated this based on its discussions with major IT companies, including TCS, Infosys, HCL and Wipro, ahead of the silent period, said there is no evidence of increased deflation in renewal contracts due to the latest AI tools from Anthropic and OpenAI since their launch.

It stated "4Q26: No increase in AI-led deflation 1st AI (artificial intelligence) in control; 2nd AI (America-Iran) not yet"

The report highlighted that vertical-wise demand commentary remains intact across companies. The BFSI ...