Cognizant’s Chief AI Officer Babak Hodjat believes worries about advanced AI tools disrupting large IT services firms are overblown. He explained that companies still need a lot of help to deploy and manage AI technologies effectively.
As concerns grow about new AI firms like Anthropic, Hodjat pointed out that even though autonomous AI agents are getting better, organizations are not ready to use them on their own.
He stressed that companies still need help deploying and scaling the technology, even as automation tools become more capable of handling complex software and IT tasks.
Enterprises Still Need Human Expertise
Hodjat said that enterprise clients still depend on service providers to turn AI experiments into real business value. According to Reuters, he explained that most clients aren’t ready to rely on a single AI agent without assistance, showing that IT firms still play a key role in managing large-scale AI projects.
Channel NewsAsia similarly reported that while rapid advances in AI tools have intensified concerns about automation replacing traditional services, Cognizant believes companies still need structured implementation rather than standalone AI systems.
Industry Workforce Adjustments Underway
This debate is happening while many technology companies are changing their workforce plans because of AI. TechGrid Media recently reported that WiseTech Global plans to cut about 2,000 jobs worldwide. The company says this is part of its automation efforts, showing how AI is changing how businesses operate across the industry.
Despite this shift, Cognizant continues to expand hiring. The company onboarded 25,000 graduates in 2025 and plans further recruitment in 2026, indicating that AI integration may create new service demands rather than eliminate them outright.
AI Adoption Growing Within Cognizant
Cognizant is also using AI within the company. About 30% of its code is now automated with AI tools, and the company wants to raise that to 50%. This shows how service providers are adopting automation while helping clients do the same.
The growth of AI-driven disruption, including new developments from Anthropic, has led to debate about whether traditional IT service firms can stay relevant as automation increases.
Evolution Rather Than Displacement
Hodjat believes that AI will likely change, not replace, large IT service firms. Rather than making providers unnecessary, the technology could actually increase the amount of work needed to put AI into practice in complex businesses.
As organizations keep exploring AI, the need for experts in integration, scalability, and governance could decide if established IT service companies stay at the heart of digital transformation.
