Cognizant AI chief has one word for trillion-dollar wipeout in stock market triggered by Anthropic's Claude AI tools
Times of India
by TOI TECH DESKFebruary 26, 2026
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Cognizant’s Chief AI Officer, Babak Hodjat, has dismissed concerns that artificial intelligence (AI) will disrupt IT services companies as “overblown,” particularly in light of the recent trillion-dollar stock market drop triggered by fears surrounding Anthropic’s Claude AI tools. Speaking to Reuters, Hodjat emphasized that while advancements in automated AI tools are significant, enterprises still require substantial human support to effectively deploy, integrate, and manage these systems within their existing infrastructure. He highlighted that businesses are far from relying on a single, all-purpose AI agent, as the process of mapping AI solutions to organizational needs remains complex and requires specialized expertise.
Hodjat’s comments come amid growing interest in AI-led transformation, which he suggests will continue to drive demand for IT services rather than eliminate it. Cognizant, with over 70% of its workforce based in India, has projected annual revenue exceeding Wall Street estimates, reflecting the ongoing importance of human expertise in navigating AI integration. Competitors like TCS and Wipro have also indicated that AI adoption is likely to expand demand for software services, as businesses seek tailored support to implement AI solutions effectively.
Despite the optimism surrounding AI’s potential, some sectors are beginning to experience job cuts tied to AI integration. For instance, WiseTech Global announced plans to reduce its workforce by nearly a third as it integrates AI into its operations, while TCS previously reported 12,000 job cuts—though the company later clarified that these were not directly linked to AI. However, Cognizant has emphasized that automation is unlikely to eliminate entry-level
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Originally published on Times of India on 2/26/2026