India, Oct. 23 -- Infosys is seeing rapid growth in its artificial intelligence (AI) business. But that momentum is not yet translating into stronger overall revenue growth. The company's second-quarter FY27 results reveal a shifting dynamics in the IT services industry: AI is opening new opportunities for technology providers while simultaneously putting pressure on traditional services revenue and pricing.

For the quarter ended September 30, 2026, AI accounted for 10.5% of Infosys' revenue, up from 8.2% in the previous quarter. AI revenue grew 29% sequentially, significantly outpacing the company's overall growth.

Yet Infosys has lowered its FY27 revenue growth guidance to 1-2% in constant currency terms, from its earlier projection o...