HCLTech, a major IT services provider based in India, is forecasting a 2%-4% revenue decline due to AI-led deflation, according to CEO C Vijayakumar. However, he is optimistic about the growth potential of advanced AI services, predicting an increase of 25%-30% in this sector. Despite ongoing geopolitical and macroeconomic uncertainties affecting discretionary spending, demand for AI solutions remains robust. HCLTech's deal bookings for FY26 reached $9.32 billion, up from $9.26 billion in FY25, indicating a steady interest in AI investments. The company is also pursuing acquisitions, such as Jaspersoft and Hewlett Packard Enterprise's Telco Solutions business, valued at $240 million and $160 million respectively, aimed at enhancing its capabilities rather than immediate revenue generation. Vijayakumar noted the importance of adapting business models to leverage AI effectively and emphasized the need for innovative solutions in an evolving tech landscape.