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IT firms with lower capital requirements may gain as investors shift focus to AI monetisation: Report

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IT firms with lower capital requirements may gain as investors shift focus to AI monetisation: Report

Business News Tech IT IT firms with lower capital requirements may gain as investors shift focus to AI monetisation: Report

IT firms with lower capital requirements may gain as investors shift focus to AI monetisation: Report

Information technology (IT) companies capable of monetising enterprise adoption of artificial intelligence (AI) without making substantial capital investments could gain an advantage as investors increasingly differentiate between businesses funding AI infrastructure and those generating returns from its adoption, according to a report by Anand Rathi.

Information technology (IT) companies capable of monetising enterprise adoption of artificial intelligence (AI) without making substantial capital investments could gain an advantage as investors increasingly differentiate between businesses funding AI infrastructure and those generating returns from its adoption, according to a report by Anand Rathi. The report said the key risk to the AI opportunity is not weakening demand but the widening gap between infrastructure commitments and proven monetisation. This is expected to make funding discipline, cash conversion and returns on invested capital increasingly important factors in determining which companies benefit from the technology's expansion.

"We believe the key risk is not weakening AI demand, but the widening gap between infrastructure commitments and proven monetisation, making funding discipline, cash conversion & returns on invested capital increasingly critical differentiators," the report said. It highlighted that companies positioned to benefit from enterprise AI adoption could have an advantage over those committing significant capital to build AI infrastructure. As enterprises move beyond experimentation, opportunities are emerging in areas such as modernisation, data integration, cybersecurity, agent governance and AI-enabled business operations.


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