India is poised to play a pivotal role in the upcoming phase of artificial intelligence, with Cognizant investing $1 billion in what it identifies as the major shift in AI’s development—the emergence of agentic systems. The company’s senior leaders are confident that India’s rich talent pool, established services framework, and advancing AI expertise make it central to global adoption.
In an interview with CNBC-TV18, Surya Gummadi, President of Americas at Cognizant, and Babak Hodjat, Chief Technology Officer for AI, shared their insights on how the company is shaping its strategy around AI agents—autonomous systems that operate across various domains, collaborate with other agents, and are increasingly customized for specific business functions.
“The billion-dollar investment is yielding excellent results for us,” Gummadi remarked, highlighting positive client feedback and operational gains. This investment focuses on three key areas: talent cultivation, infrastructure development through AI Labs, and bespoke AI-driven solutions for clients.
Hodjat, who played a key role in creating the natural language technology behind Siri, noted that agent-based systems are reemerging, but in a considerably more advanced iteration. “We’ve returned to agents and multi-agent systems,” he elaborated. Unlike in the past, current AI can engage in natural language and interact across different domains, yet still requires human expertise for effective configuration and direction.
Cognizant leaders assert that this is not a crisis for Indian IT services firms but rather a fundamental transformation. “Jobs might evolve into something different, but I don’t foresee an existential crisis,” Gummadi stated. He further noted that there will be a new layer of work focused on configuring, managing, and orchestrating agents across technology services.
Hodjat concurred, stating, “There’s no universal AI system.” He emphasized that the shift towards agentic AI is driving the demand for tailored solutions, marking this phase as one of the most promising for services firms.
Cognizant’s AI Labs are currently developing what they refer to as a “nucleus agentic system,” which clients can gradually expand within their departments. “We enable different teams to integrate agents—even those from third parties—while ensuring they undergo validation and governance,” Hodjat explained. Applications range from code migration to HR and RFP workflows.
Gummadi pointed to recent implementations for companies such as Gilead and Telstra, where agent-led workflows are being utilized in internal systems and product development. “Use cases have broadened significantly over the last 6–8 months,” he noted, highlighting activity in sectors like banking, logistics, and healthcare despite regulatory challenges.
As clients transition from proof-of-concept projects to large-scale implementation, inquiries regarding return on investment are becoming increasingly relevant. “Initially, many clients approached it in a siloed manner,” Gummadi remarked. “However, they are now adopting a holistic view of the value chain.” This transformation, he suggested, makes it easier to demonstrate ROI.
This shift toward enterprise-wide applications is also altering the nature of large outsourcing contracts. “Expenditure is shifting towards AI,” Gummadi noted, referencing a PwC study indicating that 88% of senior executives anticipate increasing AI budgets. He elaborated that Cognizant’s approach is to leverage AI for value creation, subsequently funding further transformation efforts. “By its nature, this leads to larger deals,” he said.
Hodjat mentioned that the implementation of agentic systems carries an additional advantage—enhancing cross-departmental collaboration. “One client in the edtech sector, with multiple acquisitions and no integration, found that agents helped bridge that gap immediately,” he clarified.
Cognizant believes that this framework—integrating cost efficiency, transformation, and AI-driven expansion—will shape future contracts. “We’ve validated this approach in two recent cases and have a strong pipeline,” Gummadi stated. “We anticipate this will lead to more substantial deals in the market.”
As agentic AI transitions from the lab to the corporate landscape, India’s IT professionals are expected to be crucial in assisting enterprises in adapting to this model—not only in creating AI systems but also in customizing, orchestrating, and scaling them across global operations.
