New Delhi, Feb. 25 -- On Tuesday, information technology industry body Nasscom projected a flat pace of growth for India's tech services sector in the coming fiscal years. The previous day, brokerage firm Jefferies reduced its target prices of India's Big Four IT firms. All of this adds to growing concerns around how the sector is preparing to navigate the onslaught of artificial intelligence.

But are these fears justified? How ready are India's IT firms for AI, really? Mint explains.

Nasscom's annual strategic review for FY26 said India's tech services firms are set to report 6% annualized revenue growth. While this would be the fastest growth in three years, Nasscom said the impact of AI is real, and the pace of growth could remain fl...