Friday, 4 July, 2025

BFSI's AI Boom Could Revive Slump‑Hit Indian IT Sector

The BFSI (banking, financial services, insurance) sector is set to rejuvenate India’s $280 b IT services industry, driven by surging AI adoption and demand in payments modernization, asset servicing, and platform consolidation. With cost-efficiency under pressure from inflation & geopolitical risks, financial firms are prioritizing integrated AI programs. BFSI already contributes ~30% of IT revenue & is projected to lead GenAI spending at 35–40% in FY26offering a lifeline to struggling IT firms.