The Nifty IT index has experienced a significant decline of 7.3% this week, marking its fourth consecutive session of losses. Major players in the sector, including Tata Consultancy Services (TCS), Infosys, and HCL Technologies, have reached 52-week lows amid growing concerns over the impact of artificial intelligence (AI) on traditional IT service models. The decline follows OpenAI's announcement of the OpenAI Deployment Company, which aims to assist enterprises in implementing AI systems at scale. This move has sparked fears that AI-native companies may encroach upon the consulting and implementation space traditionally held by Indian IT firms. Year-to-date, TCS, Infosys, and others have seen declines ranging from 17% to 33%, compared to a 10% drop in the Nifty 50 index. Analysts suggest that while large Indian IT firms possess strong client relationships and domain expertise, the market sentiment remains cautious due to potential disruptions from AI. The ongoing shift towards AI-native delivery models may keep sector valuations under pressure until clearer competitive dynamics emerge.