Thoughtworks India CTO Warns Against the Naive Rush to Turn APIs into MCP Servers

Artificial Intelligence (AI) is reshaping enterprise technology far beyond algorithms. While AI adoption is accelerating across enterprises, the rush to embed agents into every workflow has introduced a new wave of technical missteps.

The AI wave has forced enterprises to rethink everything from infrastructure automation to testing practices, said Bharani Subramaniam, Thoughtworks CTO for India and the Middle East. He cautioned that despite the rise of agents and code generation, the industry is still learning where autonomy ends and human oversight begins.

In a conversation with AIM, Subramaniam explained how accelerated compute, agentic systems, and autonomous workflows are pushing organisations into a new phase of real production adoption, not mere experimentation.

Workloads Become Heterogeneous

AI infrastructure now spans specialised chips, GPU fleets and advanced orchestration layers, he said, adding that the automation layer is finally catching up. Cloud providers and hardware vendors are coming up with tools to manage GPU-heavy workloads that behave very differently from traditional microservices.

Where infrastructure-as-code became standard for CPU clusters, the same discipline is only now arriving for AI workloads. He cited Thoughtworks latest report ‘Technology Radar,’ where the company describes the phenomena in detail.

He explains that the current reality in accelerated computing, driven by the intense demand for GPUs, is that organisations often need to source these resources from multiple providers. For instance, a client might use GPU-equipped workstations in their own data centre and also procure GPUs from one or more cloud providers (e.g., AWS, Azure, GCP).

Subramaniam added that securing a large number of GPUs from a single vendor is extremely challenging right now. To address this multi-vendor environment, critical infrastructure platforms have emerged from Thoughtworks.

One such platform, SkyPilot, is utilised by teams to manage workloads across disparate GPU sources, say, five from Azure, three from AWS, five from Google Cloud Platform (GCP), or even specialised GPU cloud providers. This capability demonstrates how infrastructure automation in the AI space has successfully adapted to the complexities of the present-day market reality.

Software Testing Is Evolving

Amid anxieties about AI automating testers out of the picture, Subramaniam offered a grounded view.

The number of tests may increase dramatically, but human oversight becomes even more crucial. “If a human team wrote it, they would have written 200 tests. [But] the AI model would have written 2000 tests, right?” he quipped.

“You still need to spend time to vet, is it valid? not valid? and fine-tune the generation.”

That would be extra work, even though AI has generated it, he continued. But still, that wouldn’t be as tedious as writing the tests “yourself”.

Efficiency rises, he said, but not to a point where humans disappear. “With AI, maybe you need three or four engineers to do the job… but we have not attained a level where I don’t need any humans.”

Subramaniam also warned of “complacency with AI-generated code,” an anti-pattern they flagged in their industry landscape report. Developers may implicitly accept AI-suggested solutions without evaluating alternatives.

“If you give [a] problem to any model…you are given a solution, whether that solution is good or not.”

“And implicitly, you get biased to accept that it is a valid solution, because then you have to review to prove this is wrong, right?” he said.

Agentic Workflows, Not Autonomous Agents

Despite the buzz around AI agents, Subramaniam stressed that true autonomy is rare in the enterprise. Most implementations remain tightly guided.

“They are more of a workflow where the actual path is pre-determined by a human,” he said. Agents can take non-deterministic steps within constraints, but cannot, for instance, wander off and perform actions outside a loan-processing workflow.

He said, “In the spirit of becoming agentic, some organisations rush to convert these APIs to be an MCP server, and then give agents access to these APIs. I would call it very naive.”

Takeaways for Leaders

Most Thoughtworks clients, he said, are now past the POC stage. “We are very much in the third phase where it’s not pilot, it’s actual production that they are using AI for,” he said.

Indian enterprises, especially in regulated sectors, are already shaping the sovereign AI landscape.

Strict data-localisation requirements are pushing companies to self-host inference inside the country.

“We have to ensure that the requests stay within India,” he noted.

Subramaniam summarised the conversation with three takeaways for business leaders. “Raise the level of literacy,” he said, stressing that AI understanding cannot remain confined to tech teams.

Second, enterprises “can only be as successful in AI as your trust in your old data,” calling for cleaner, more mature data systems. Finally, leaders must “reimagine what customer experience you want to give,” before deciding where agents and AI meaningfully fit.

The post Thoughtworks India CTO Warns Against the Naive Rush to Turn APIs into MCP Servers appeared first on Analytics India Magazine.

CAMB.AI, Kompact AI by Ziroh Labs to Optimise Voice Synthesis LLMs for CPUs

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CAMB.AI, a global multilingual voice translation company, has partnered with Kompact AI, Bengaluru-based deep tech Ziroh Labs’ CPU-first AI platform. With the partnership. CAMB.AI aims to run its multilingual voice and translation models on regular CPU machines and remove the need for expensive GPU systems.

The UAE- and US-based company will utilise Kompact AI’s optimisation technology to run its CAMB.AI’s MARS7 (Multilingual Audio Rendering and Synthesis) and BOLI (Bilingual Online Language Interpreter) models. Kompact AI also supports real-time use on edge devices, including offline environments, enabling organisations to scale their voice AI systems using existing hardware.

CAMB.AI’s co-founder and CTO, Akshat Prakash, said the collaboration ensures enterprises “no longer need to choose between performance and accessibility,” adding that companies can now deploy MARS7 and BOLI models on standard CPU infrastructure while achieving broadcast-quality results across 150+ languages.
With the partnership, CAMB.AI looks to reduce AI inferencing costs by up to 50% while eliminating the need for quantisation or distillation, which can reduce accuracy.
Hrishikesh Dewan, co-founder and CEO of Ziroh Labs, highlighted that the collaboration creates “unprecedented opportunities for enterprises to deploy sophisticated AI without traditional barriers” and described the CPU-first runtime as a potential game-changer across industries from sports to education to healthcare. Kompact AI enables large language models to perform high core counts on CPU infrastructure, challenging the traditional GPU-centric model.
The integration supports a wide range of real-world applications, the company noted in a statement. Sports venues can run live multilingual commentary locally without relying on the cloud.

Hospitals can operate translation systems on-premises while ensuring regulatory compliance. Educational institutions can provide multilingual learning using their existing infrastructure. Global enterprises can enable real-time translation in meetings and customer service centres without expensive hardware upgrades.
With CPU-optimised MARS7 and BOLI models, CAMB.AI now looks to make scalable, high-quality multilingual AI accessible across industries, removing barriers that previously limited enterprise adoption.

Last month, CAMB.AI and Broadcom announced a collaboration that embeds CAMB.AI’s generative voice model, MARS, directly into Broadcom’s neural processing unit chipsets.

CAMB.AI has worked with brands including NASCAR, Major League Soccer, YES Network, the Australian Open, FanCode, and Comcast NBCUniversal to enable emotionally authentic multilingual dubbing for live sports.

The company has raised $18.3 million to date, according to Tracxn data, and operates across the US, Canada, APAC, Europe, the Middle East, and India markets. Its MARS generative text-to-speech model is available on AWS Bedrock and Google Vertex AI.

The post CAMB.AI, Kompact AI by Ziroh Labs to Optimise Voice Synthesis LLMs for CPUs appeared first on Analytics India Magazine.

Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow

Indian IT services firms have embedded AI capabilities—AI infused into delivery, engineering, operations, testing, and managed services. Infosys’ Topaz platform, TCS’ MFDM (Machine First Delivery Model), Ignio AI operations, Wipro Lab45 are a few examples, among others.

Very few firms have dedicated P&L or org structures around AI/Gen AI enterprise application business, and hence, few have translated these capabilities into visible revenue outcomes, said Gaurav Vasu, CEO & founder of UnearthInsight, a cognitive intelligence platform that provides business & financial intelligence on Indian Startups.

TCS and HCLTech are the only firms recognising AI-led revenue. This is a result of past product and platform business exposure, where independent AI solutions are sold, outside the current services deals construct.

Embedded AI is largely invisible, running in the background to reduce effort, improve cycle time, and boost quality. Clients now expect AI/GenAI clauses in deals that promise faster outcomes, lower costs, and predictable delivery.

Tech service providers are embedding AI in their delivery models to create efficiency, cost, and time-to-market impact for their clients, said Yugal Joshi, partner at global research firm Everest Group. “The productivity promises of 20–30% have become common,” he added.

But here’s the catch: despite the AI push, most real money still comes from traditional levers, large contract wins, multi-year deal renewals, and price-based expansions. Embedded AI keeps Indian IT competitive, but its monetisation potential is yet to unfurl.

Why Cling to Embedded AI?

Globally, Modular AI — reusable, auditable AI building blocks — is gaining momentum. But, Indian IT continues to prioritise embedded AI. Deepak Dastrala, CTO at Intellect Design Arena, explained why.

“The hesitation is less about technology and more about the prevailing business model. Indian IT is optimised for people, projects, and billable hours, not products and IP. Embedded AI fits the traditional services model perfectly.”

Modular AI demands upfront investment, a product mindset, and sometimes saying no to custom client work which is a tough shift for firms built on services scale. Limited access to high-end compute, curated datasets, and research-heavy talent adds friction.

Jayaprakash Nair, head of AI and analytics at Altimetrik, a digital business services company, pointed this out. “Creating foundational models demands sustained GPU capacity and significant capital expenditure. Fine-tuning existing models remains the practical approach.”

This is also why many internal AI accelerators, copilots, and automation engines never get productised. Indian IT has built powerful internal AI tools, but few have been converted into modular products, or subscription offerings that influence pricing or deal structures.

Embedded AI fits the current business model, and that is both its strength and limitation.

The Hidden Limits

Embedded AI boosts efficiency, but it also creates complexity.

Each project ends up with its own prompts, integrations, guardrails, and custom workflows. Over time, this produces technical debt and governance headaches. When regulations shift or base models change, you are forced to patch 10 to 50 different places. Observability and safety become a game of whack-a-mole.

As Dastrala noted,“A module reused across 10 clients reduces new-build revenue. Firms fear standardisation because it cannibalises services revenue.”

Without measurable metrics, embedded AI rarely becomes a deal-winning differentiator. Vasu highlighted, “Embedded AI is still under the hood. Firms need observability dashboards that show real-time impact on cycle time, effort saved, defects avoided, and SLA improvements.”

This lack of visibility means clients continue awarding mega-deals and renewing large contracts based on transformation scale and pricing, not on embedded AI value, because it isn’t packaged or quantified well.

Internal transformation is another challenge. Embedding AI requires rethinking workforce planning, updating delivery assets, and preparing teams for automation-driven role changes, a cultural shift that moves slower than expected.

Starting Embedded a Smart Move?

Despite its limitations, embedded AI is a logical first step. It integrates directly into existing workflows and delivers early, low-risk wins. As Joshi put it,“Starting with embedded AI helps companies deliver faster outcomes and validate impact. It creates confidence before they scale with modular AI.”

A modular foundation of reusable agents, policy checkers, KYC summarisers and governance modules helps solve long-term problems such as technical debt, versioning, security, and cross-client standardisation.

Dastrala called this hybrid approach: “Modular at the core, embedded at the edge.” This lets firms scale proven modules across clients, while customising only the last mile.

Embedded AI should evolve into a client-facing differentiator with clear ROI attribution and deal-linked monetisation, added Vasu.

Modular architectures also allow upgrades without tearing apart legacy systems. Nair noted that embedded solutions don’t always win when scaling or managing complexity. “Modular architectures reduce risk by separating functionality into components that can be upgraded independently,” he said.

The path is clear: embedded for early wins, modular for sustainable scale.

The Future: Modular at the Core

Clients won’t choose between embedded and modular AI, they will demand both. Modular AI provides governance, security, and reusability; embedded AI ensures contextual, workflow-specific integration.

“Once the API buzz fades, clients will ask platform-oriented questions. Providers who remain purely embedded will get trapped in project debt,” warned Dastrala.

Indian IT firms that can show measurable AI impact — reduced cycle time, predictable SLAs, fewer defects — already enjoy higher win ratios in transformation and managed services deals.

“But, clients still treat it [embedded AI] as table stakes because it isn’t standardised or productised,” noted Vasu.

This is where modularity becomes commercially essential. Firms that link AI impact to pricing, renewals, and value-based deals will move away from volume-led revenue and into outcome-led monetisation.

Nair summed up the opportunity: “Reusable modular blocks on top of proven embedded AI delivery models let clients start small, iterate fast, and embed fully once value is proven.”

The firms that productise their embedded intelligence — and combine it with modular building blocks — will shape how enterprises adopt AI at scale.

Conclusion

Indian IT’s AI strategy is at an inflection point. Embedded AI has delivered efficiency and client trust. But, long-term growth will come from productised, modular AI that compounds across clients, shapes deal structures, and influences pricing.

The winning formula is now clear: start embedded, scale modular, productise everything that delivers repeatable value.

Indian IT must evolve embedded AI from an internal efficiency tool into a visible, governable, monetisable product layer, because in the next wave of global technology spending, clients will expect nothing less.

The post Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow appeared first on Analytics India Magazine.

Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow

Indian IT services firms have embedded AI capabilities—AI infused into delivery, engineering, operations, testing, and managed services. Infosys’ Topaz platform, TCS’ MFDM (Machine First Delivery Model), Ignio AI operations, Wipro Lab45 are a few examples, among others.

Very few firms have dedicated P&L or org structures around AI/Gen AI enterprise application business, and hence, few have translated these capabilities into visible revenue outcomes, said Gaurav Vasu, CEO & founder of UnearthInsight, a cognitive intelligence platform that provides business & financial intelligence on Indian Startups.

TCS and HCLTech are the only firms recognising AI-led revenue. This is a result of past product and platform business exposure, where independent AI solutions are sold, outside the current services deals construct.

Embedded AI is largely invisible, running in the background to reduce effort, improve cycle time, and boost quality. Clients now expect AI/GenAI clauses in deals that promise faster outcomes, lower costs, and predictable delivery.

Tech service providers are embedding AI in their delivery models to create efficiency, cost, and time-to-market impact for their clients, said Yugal Joshi, partner at global research firm Everest Group. “The productivity promises of 20–30% have become common,” he added.

But here’s the catch: despite the AI push, most real money still comes from traditional levers, large contract wins, multi-year deal renewals, and price-based expansions. Embedded AI keeps Indian IT competitive, but its monetisation potential is yet to unfurl.

Why Cling to Embedded AI?

Globally, Modular AI — reusable, auditable AI building blocks — is gaining momentum. But, Indian IT continues to prioritise embedded AI. Deepak Dastrala, CTO at Intellect Design Arena, explained why.

“The hesitation is less about technology and more about the prevailing business model. Indian IT is optimised for people, projects, and billable hours, not products and IP. Embedded AI fits the traditional services model perfectly.”

Modular AI demands upfront investment, a product mindset, and sometimes saying no to custom client work which is a tough shift for firms built on services scale. Limited access to high-end compute, curated datasets, and research-heavy talent adds friction.

Jayaprakash Nair, head of AI and analytics at Altimetrik, a digital business services company, pointed this out. “Creating foundational models demands sustained GPU capacity and significant capital expenditure. Fine-tuning existing models remains the practical approach.”

This is also why many internal AI accelerators, copilots, and automation engines never get productised. Indian IT has built powerful internal AI tools, but few have been converted into modular products, or subscription offerings that influence pricing or deal structures.

Embedded AI fits the current business model, and that is both its strength and limitation.

The Hidden Limits

Embedded AI boosts efficiency, but it also creates complexity.

Each project ends up with its own prompts, integrations, guardrails, and custom workflows. Over time, this produces technical debt and governance headaches. When regulations shift or base models change, you are forced to patch 10 to 50 different places. Observability and safety become a game of whack-a-mole.

As Dastrala noted,“A module reused across 10 clients reduces new-build revenue. Firms fear standardisation because it cannibalises services revenue.”

Without measurable metrics, embedded AI rarely becomes a deal-winning differentiator. Vasu highlighted, “Embedded AI is still under the hood. Firms need observability dashboards that show real-time impact on cycle time, effort saved, defects avoided, and SLA improvements.”

This lack of visibility means clients continue awarding mega-deals and renewing large contracts based on transformation scale and pricing, not on embedded AI value, because it isn’t packaged or quantified well.

Internal transformation is another challenge. Embedding AI requires rethinking workforce planning, updating delivery assets, and preparing teams for automation-driven role changes, a cultural shift that moves slower than expected.

Starting Embedded a Smart Move?

Despite its limitations, embedded AI is a logical first step. It integrates directly into existing workflows and delivers early, low-risk wins. As Joshi put it,“Starting with embedded AI helps companies deliver faster outcomes and validate impact. It creates confidence before they scale with modular AI.”

A modular foundation of reusable agents, policy checkers, KYC summarisers and governance modules helps solve long-term problems such as technical debt, versioning, security, and cross-client standardisation.

Dastrala called this hybrid approach: “Modular at the core, embedded at the edge.” This lets firms scale proven modules across clients, while customising only the last mile.

Embedded AI should evolve into a client-facing differentiator with clear ROI attribution and deal-linked monetisation, added Vasu.

Modular architectures also allow upgrades without tearing apart legacy systems. Nair noted that embedded solutions don’t always win when scaling or managing complexity. “Modular architectures reduce risk by separating functionality into components that can be upgraded independently,” he said.

The path is clear: embedded for early wins, modular for sustainable scale.

The Future: Modular at the Core

Clients won’t choose between embedded and modular AI, they will demand both. Modular AI provides governance, security, and reusability; embedded AI ensures contextual, workflow-specific integration.

“Once the API buzz fades, clients will ask platform-oriented questions. Providers who remain purely embedded will get trapped in project debt,” warned Dastrala.

Indian IT firms that can show measurable AI impact — reduced cycle time, predictable SLAs, fewer defects — already enjoy higher win ratios in transformation and managed services deals.

“But, clients still treat it [embedded AI] as table stakes because it isn’t standardised or productised,” noted Vasu.

This is where modularity becomes commercially essential. Firms that link AI impact to pricing, renewals, and value-based deals will move away from volume-led revenue and into outcome-led monetisation.

Nair summed up the opportunity: “Reusable modular blocks on top of proven embedded AI delivery models let clients start small, iterate fast, and embed fully once value is proven.”

The firms that productise their embedded intelligence — and combine it with modular building blocks — will shape how enterprises adopt AI at scale.

Conclusion

Indian IT’s AI strategy is at an inflection point. Embedded AI has delivered efficiency and client trust. But, long-term growth will come from productised, modular AI that compounds across clients, shapes deal structures, and influences pricing.

The winning formula is now clear: start embedded, scale modular, productise everything that delivers repeatable value.

Indian IT must evolve embedded AI from an internal efficiency tool into a visible, governable, monetisable product layer, because in the next wave of global technology spending, clients will expect nothing less.

The post Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow appeared first on Analytics India Magazine.

Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow

Indian IT services firms have embedded AI capabilities—AI infused into delivery, engineering, operations, testing, and managed services. Infosys’ Topaz platform, TCS’ MFDM (Machine First Delivery Model), Ignio AI operations, Wipro Lab45 are a few examples, among others.

Very few firms have dedicated P&L or org structures around AI/Gen AI enterprise application business, and hence, few have translated these capabilities into visible revenue outcomes, said Gaurav Vasu, CEO & founder of UnearthInsight, a cognitive intelligence platform that provides business & financial intelligence on Indian Startups.

TCS and HCLTech are the only firms recognising AI-led revenue. This is a result of past product and platform business exposure, where independent AI solutions are sold, outside the current services deals construct.

Embedded AI is largely invisible, running in the background to reduce effort, improve cycle time, and boost quality. Clients now expect AI/GenAI clauses in deals that promise faster outcomes, lower costs, and predictable delivery.

Tech service providers are embedding AI in their delivery models to create efficiency, cost, and time-to-market impact for their clients, said Yugal Joshi, partner at global research firm Everest Group. “The productivity promises of 20–30% have become common,” he added.

But here’s the catch: despite the AI push, most real money still comes from traditional levers, large contract wins, multi-year deal renewals, and price-based expansions. Embedded AI keeps Indian IT competitive, but its monetisation potential is yet to unfurl.

Why Cling to Embedded AI?

Globally, Modular AI — reusable, auditable AI building blocks — is gaining momentum. But, Indian IT continues to prioritise embedded AI. Deepak Dastrala, CTO at Intellect Design Arena, explained why.

“The hesitation is less about technology and more about the prevailing business model. Indian IT is optimised for people, projects, and billable hours, not products and IP. Embedded AI fits the traditional services model perfectly.”

Modular AI demands upfront investment, a product mindset, and sometimes saying no to custom client work which is a tough shift for firms built on services scale. Limited access to high-end compute, curated datasets, and research-heavy talent adds friction.

Jayaprakash Nair, head of AI and analytics at Altimetrik, a digital business services company, pointed this out. “Creating foundational models demands sustained GPU capacity and significant capital expenditure. Fine-tuning existing models remains the practical approach.”

This is also why many internal AI accelerators, copilots, and automation engines never get productised. Indian IT has built powerful internal AI tools, but few have been converted into modular products, or subscription offerings that influence pricing or deal structures.

Embedded AI fits the current business model, and that is both its strength and limitation.

The Hidden Limits

Embedded AI boosts efficiency, but it also creates complexity.

Each project ends up with its own prompts, integrations, guardrails, and custom workflows. Over time, this produces technical debt and governance headaches. When regulations shift or base models change, you are forced to patch 10 to 50 different places. Observability and safety become a game of whack-a-mole.

As Dastrala noted,“A module reused across 10 clients reduces new-build revenue. Firms fear standardisation because it cannibalises services revenue.”

Without measurable metrics, embedded AI rarely becomes a deal-winning differentiator. Vasu highlighted, “Embedded AI is still under the hood. Firms need observability dashboards that show real-time impact on cycle time, effort saved, defects avoided, and SLA improvements.”

This lack of visibility means clients continue awarding mega-deals and renewing large contracts based on transformation scale and pricing, not on embedded AI value, because it isn’t packaged or quantified well.

Internal transformation is another challenge. Embedding AI requires rethinking workforce planning, updating delivery assets, and preparing teams for automation-driven role changes, a cultural shift that moves slower than expected.

Starting Embedded a Smart Move?

Despite its limitations, embedded AI is a logical first step. It integrates directly into existing workflows and delivers early, low-risk wins. As Joshi put it,“Starting with embedded AI helps companies deliver faster outcomes and validate impact. It creates confidence before they scale with modular AI.”

A modular foundation of reusable agents, policy checkers, KYC summarisers and governance modules helps solve long-term problems such as technical debt, versioning, security, and cross-client standardisation.

Dastrala called this hybrid approach: “Modular at the core, embedded at the edge.” This lets firms scale proven modules across clients, while customising only the last mile.

Embedded AI should evolve into a client-facing differentiator with clear ROI attribution and deal-linked monetisation, added Vasu.

Modular architectures also allow upgrades without tearing apart legacy systems. Nair noted that embedded solutions don’t always win when scaling or managing complexity. “Modular architectures reduce risk by separating functionality into components that can be upgraded independently,” he said.

The path is clear: embedded for early wins, modular for sustainable scale.

The Future: Modular at the Core

Clients won’t choose between embedded and modular AI, they will demand both. Modular AI provides governance, security, and reusability; embedded AI ensures contextual, workflow-specific integration.

“Once the API buzz fades, clients will ask platform-oriented questions. Providers who remain purely embedded will get trapped in project debt,” warned Dastrala.

Indian IT firms that can show measurable AI impact — reduced cycle time, predictable SLAs, fewer defects — already enjoy higher win ratios in transformation and managed services deals.

“But, clients still treat it [embedded AI] as table stakes because it isn’t standardised or productised,” noted Vasu.

This is where modularity becomes commercially essential. Firms that link AI impact to pricing, renewals, and value-based deals will move away from volume-led revenue and into outcome-led monetisation.

Nair summed up the opportunity: “Reusable modular blocks on top of proven embedded AI delivery models let clients start small, iterate fast, and embed fully once value is proven.”

The firms that productise their embedded intelligence — and combine it with modular building blocks — will shape how enterprises adopt AI at scale.

Conclusion

Indian IT’s AI strategy is at an inflection point. Embedded AI has delivered efficiency and client trust. But, long-term growth will come from productised, modular AI that compounds across clients, shapes deal structures, and influences pricing.

The winning formula is now clear: start embedded, scale modular, productise everything that delivers repeatable value.

Indian IT must evolve embedded AI from an internal efficiency tool into a visible, governable, monetisable product layer, because in the next wave of global technology spending, clients will expect nothing less.

The post Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow appeared first on Analytics India Magazine.

Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow

Indian IT services firms have embedded AI capabilities—AI infused into delivery, engineering, operations, testing, and managed services. Infosys’ Topaz platform, TCS’ MFDM (Machine First Delivery Model), Ignio AI operations, Wipro Lab45 are a few examples, among others.

Very few firms have dedicated P&L or org structures around AI/Gen AI enterprise application business, and hence, few have translated these capabilities into visible revenue outcomes, said Gaurav Vasu, CEO & founder of UnearthInsight, a cognitive intelligence platform that provides business & financial intelligence on Indian Startups.

TCS and HCLTech are the only firms recognising AI-led revenue. This is a result of past product and platform business exposure, where independent AI solutions are sold, outside the current services deals construct.

Embedded AI is largely invisible, running in the background to reduce effort, improve cycle time, and boost quality. Clients now expect AI/GenAI clauses in deals that promise faster outcomes, lower costs, and predictable delivery.

Tech service providers are embedding AI in their delivery models to create efficiency, cost, and time-to-market impact for their clients, said Yugal Joshi, partner at global research firm Everest Group. “The productivity promises of 20–30% have become common,” he added.

But here’s the catch: despite the AI push, most real money still comes from traditional levers, large contract wins, multi-year deal renewals, and price-based expansions. Embedded AI keeps Indian IT competitive, but its monetisation potential is yet to unfurl.

Why Cling to Embedded AI?

Globally, Modular AI — reusable, auditable AI building blocks — is gaining momentum. But, Indian IT continues to prioritise embedded AI. Deepak Dastrala, CTO at Intellect Design Arena, explained why.

“The hesitation is less about technology and more about the prevailing business model. Indian IT is optimised for people, projects, and billable hours, not products and IP. Embedded AI fits the traditional services model perfectly.”

Modular AI demands upfront investment, a product mindset, and sometimes saying no to custom client work which is a tough shift for firms built on services scale. Limited access to high-end compute, curated datasets, and research-heavy talent adds friction.

Jayaprakash Nair, head of AI and analytics at Altimetrik, a digital business services company, pointed this out. “Creating foundational models demands sustained GPU capacity and significant capital expenditure. Fine-tuning existing models remains the practical approach.”

This is also why many internal AI accelerators, copilots, and automation engines never get productised. Indian IT has built powerful internal AI tools, but few have been converted into modular products, or subscription offerings that influence pricing or deal structures.

Embedded AI fits the current business model, and that is both its strength and limitation.

The Hidden Limits

Embedded AI boosts efficiency, but it also creates complexity.

Each project ends up with its own prompts, integrations, guardrails, and custom workflows. Over time, this produces technical debt and governance headaches. When regulations shift or base models change, you are forced to patch 10 to 50 different places. Observability and safety become a game of whack-a-mole.

As Dastrala noted,“A module reused across 10 clients reduces new-build revenue. Firms fear standardisation because it cannibalises services revenue.”

Without measurable metrics, embedded AI rarely becomes a deal-winning differentiator. Vasu highlighted, “Embedded AI is still under the hood. Firms need observability dashboards that show real-time impact on cycle time, effort saved, defects avoided, and SLA improvements.”

This lack of visibility means clients continue awarding mega-deals and renewing large contracts based on transformation scale and pricing, not on embedded AI value, because it isn’t packaged or quantified well.

Internal transformation is another challenge. Embedding AI requires rethinking workforce planning, updating delivery assets, and preparing teams for automation-driven role changes, a cultural shift that moves slower than expected.

Starting Embedded a Smart Move?

Despite its limitations, embedded AI is a logical first step. It integrates directly into existing workflows and delivers early, low-risk wins. As Joshi put it,“Starting with embedded AI helps companies deliver faster outcomes and validate impact. It creates confidence before they scale with modular AI.”

A modular foundation of reusable agents, policy checkers, KYC summarisers and governance modules helps solve long-term problems such as technical debt, versioning, security, and cross-client standardisation.

Dastrala called this hybrid approach: “Modular at the core, embedded at the edge.” This lets firms scale proven modules across clients, while customising only the last mile.

Embedded AI should evolve into a client-facing differentiator with clear ROI attribution and deal-linked monetisation, added Vasu.

Modular architectures also allow upgrades without tearing apart legacy systems. Nair noted that embedded solutions don’t always win when scaling or managing complexity. “Modular architectures reduce risk by separating functionality into components that can be upgraded independently,” he said.

The path is clear: embedded for early wins, modular for sustainable scale.

The Future: Modular at the Core

Clients won’t choose between embedded and modular AI, they will demand both. Modular AI provides governance, security, and reusability; embedded AI ensures contextual, workflow-specific integration.

“Once the API buzz fades, clients will ask platform-oriented questions. Providers who remain purely embedded will get trapped in project debt,” warned Dastrala.

Indian IT firms that can show measurable AI impact — reduced cycle time, predictable SLAs, fewer defects — already enjoy higher win ratios in transformation and managed services deals.

“But, clients still treat it [embedded AI] as table stakes because it isn’t standardised or productised,” noted Vasu.

This is where modularity becomes commercially essential. Firms that link AI impact to pricing, renewals, and value-based deals will move away from volume-led revenue and into outcome-led monetisation.

Nair summed up the opportunity: “Reusable modular blocks on top of proven embedded AI delivery models let clients start small, iterate fast, and embed fully once value is proven.”

The firms that productise their embedded intelligence — and combine it with modular building blocks — will shape how enterprises adopt AI at scale.

Conclusion

Indian IT’s AI strategy is at an inflection point. Embedded AI has delivered efficiency and client trust. But, long-term growth will come from productised, modular AI that compounds across clients, shapes deal structures, and influences pricing.

The winning formula is now clear: start embedded, scale modular, productise everything that delivers repeatable value.

Indian IT must evolve embedded AI from an internal efficiency tool into a visible, governable, monetisable product layer, because in the next wave of global technology spending, clients will expect nothing less.

The post Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow appeared first on Analytics India Magazine.

Disney Plans $1 Bn Investment in OpenAI, to Bring Over 200 Characters to Sora

Even as the entertainment industry is reshaping, with Netflix announcing plans to acquire Warner Bros., The Walt Disney Company on Thursday announced it has entered into a three-year licensing agreement with OpenAI. This will allow Sora, OpenAI’s generative video platform, to create short, user-prompted social videos featuring more than 200 characters from Disney, Marvel, Pixar and Star Wars.

The deal also includes a $1 billion equity investment in OpenAI, along with warrants to purchase additional equity. The transaction remains subject to definitive agreements, corporate and board approvals, and other closing conditions. Sora and ChatGPT Images are expected to begin generating Disney-licensed content in early 2026.

Under the agreement, Sora will generate short videos based on user prompts, using a library of animated, masked and creature characters, as well as costumes, props, vehicles and iconic environments.

The licence does not include any talent likenesses or voices. ChatGPT Images will also be able to generate images using the same intellectual property.

Disney+ will stream a curated selection of fan-inspired Sora videos, while both companies collaborate to build new subscriber experiences using OpenAI’s models. Disney will adopt OpenAI APIs across products, tools and internal workflows, including ChatGPT for employees.

Among the characters fans will be able to use are Mickey Mouse, Minnie Mouse, Lilo, Stitch, Ariel, Belle, Beast, Cinderella, Baymax, Simba and Mufasa, as well as characters from Encanto, Frozen, Inside Out, Moana, Monsters Inc., Toy Story, Up and Zootopia.

The licence will also include animated or illustrated versions of Marvel and Lucasfilm characters such as Black Panther, Captain America, Deadpool, Groot, Iron Man, Loki, Thor, Thanos, Darth Vader, Han Solo, Luke Skywalker, Leia, the Mandalorian, Stormtroopers and Yoda.

Both companies said the partnership includes a framework for responsible AI use. They said it focuses on user safety, protection of creator rights, age-appropriate policies, and systems to prevent illegal or harmful content.

“Technological innovation has continually shaped the evolution of entertainment, bringing with it new ways to create and share great stories with the world,” said Robert Iger, CEO of The Walt Disney Company.

“Bringing together Disney’s iconic stories and characters with OpenAI’s groundbreaking technology puts imagination and creativity directly into the hands of Disney fans in ways we’ve never seen before, giving them richer and more personal ways to connect with the Disney characters and stories they love.”

Sam Altman, co-founder and CEO of OpenAI, said, “Disney is the global gold standard for storytelling, and we’re excited to partner to allow Sora and ChatGPT Images to expand the way people create and experience great content.”

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Meet Satya Nadella, The Developer Hiding in Plain Sight

Microsoft CEO Satya Nadella stepped onto the Bengaluru stage not like a global tech leader carrying the weight of one of a $3.5 trillion company in the AI race, but like an engineer who simply couldn’t wait to show off a side project that he’d been hacking for hours.

Like some young developer out there exploring what wonders AI can do, Nadella has quietly been doing the same. His day doesn’t start with board meetings, but with AI assistant Copilot on his phone.

He wakes up, sets off agents, and then heads to work. He keeps coming back to it, only to see if the tasks been completed or what improvements the agents have made. “It’s just fun to be able to play with GitHub and just be constantly modifying,” Nadella said.

While the world was shutting off for Thanksgiving Day, Nadella started building what he calls an LLM Council, a multi-agent reasoning system. It has been inspired by Andrej Karpathy’s reasoning system that lets AI models debate inside an app.

Was fun to be at a dev event in Bengaluru and demo an app I built recently for deep research with multiple models and decision frameworks…think of it as "chain of debate"… Next stop, Copilot!! pic.twitter.com/oiinGN05BA

— Satya Nadella (@satyanadella) December 11, 2025

Creating one like a builder, he says, as a platform company, it’s always exciting to see the builders bring their creative and entrepreneurial energy. He even showed the app to Indian billionaire Gautam Adani, a day after meeting Prime Minister Narendra Modi.

Nadella shared that he works inside a Windows 365 environment using GitHub Codespaces, where his setup automatically generates several draft branches each morning. He reviews and deletes most of them by the end of the day, but usually keeps a piece or two that proves useful. Over time, those small daily experiments eventually grew into the decision-making framework he is now building.

On the model front, he said he relies heavily on Codex-Max because of its speed. Nadella said he wanted to go beyond building a simple deep-research tool, which pushed him toward the idea of the LLM Council. He even joked that all this work was really his attempt to get a job on the Copilot team.

What is LLM Council?

The LLM Council brings multiple models together. “We have all of these models available to you — GPT, Claude Opus, Gemini, Grok,” Nadella said. Users can pick one model to serve as the chair, with the rest acting as council members. The group then works like a selection committee, debating and weighing the query before producing an answer.

He compared the process to a chain of thought, but called it a ‘chain of debate’ instead.

For the demo, Nadella showed the council debated an all-time Indian Test cricket team, with different models offering contrasting judgments on openers, bowlers and captaincy. He explained that the system can spot problems such as era bias in cricket analysis, and that each model helps correct and refine the reasoning.

He then introduced DxO, a framework adapted from earlier healthcare research known as MAI-DxO. MAI-DxO stands for Microsoft AI Diagnostic Orchestrator, a model-agnostic multi-agent system originally built for medical diagnostics. “DxO is a thing that we implemented in healthcare first,” Nadella said. In this setup, Claude Opus leads the research, GPT-5.1 reviews for gaps and bias, and Gemini contributes domain and data analysis.

Nadella gave an example of a decision-making framework called Ensemble. In this setup, all the available AI models are used at once, but their identities are hidden. Instead of knowing whether a response came from GPT, Gemini, Claude, or Grok, the system anonymises them by assigning neutral labels like Alpha, Beta, Gamma, etc.

By removing model identities, the system prevents bias toward any specific model. All the responses are then combined, or synthesised, into a final single answer, so that the evaluation stays neutral.

Meta Cognition

Across all three frameworks, Nadella emphasised what he called a new form of user-level metacognition. “To me, this is the next generation of metacognition,” he said.

Although the agents produce research, critique and synthesis, he noted that “the metacognition is still us,” and these systems function as tools that strengthen human oversight.

His interface showed what he calls a “chain of debate,” allowing users to watch the models challenge each other and improve the answers before giving a final recommendation.

While Nadella used cricket as a demonstration, he said the same structures apply to complex decisions in supply chains, healthcare, finance and enterprise planning. “These types of chains of debates with multiple agents participating are going to be a lot of what we are all going to build,” he said.

Nadella also spoke about Agent365, Microsoft’s runtime layer for securing agentic systems. When he attempted to deploy his own agent into Microsoft’s tenant, the system blocked it.

He explained that Agent365 requires admin approval even for internally built agents. He described the runtime as essential for governance, observability and compliance in a world where enterprises deploy many autonomous agents.

He concluded by mentioning the momentum he is seeing across industries. Companies such as Cognizant, Persistent Systems, Swiggy and others are already building multi-agent orchestration frameworks. These examples, Nadella said, signal how rapidly agentic architectures are spreading through enterprise workflows.

The post Meet Satya Nadella, The Developer Hiding in Plain Sight appeared first on Analytics India Magazine.

Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow

Indian IT services firms have embedded AI capabilities—AI infused into delivery, engineering, operations, testing, and managed services. Infosys’ Topaz platform, TCS’ MFDM (Machine First Delivery Model), Ignio AI operations, Wipro Lab45 are a few examples, among others.

Very few firms have dedicated P&L or org structures around AI/Gen AI enterprise application business, and hence, few have translated these capabilities into visible revenue outcomes, said Gaurav Vasu, CEO & founder of UnearthInsight, a cognitive intelligence platform that provides business & financial intelligence on Indian Startups.

TCS and HCLTech are the only firms recognising AI-led revenue. This is a result of past product and platform business exposure, where independent AI solutions are sold, outside the current services deals construct.

Embedded AI is largely invisible, running in the background to reduce effort, improve cycle time, and boost quality. Clients now expect AI/GenAI clauses in deals that promise faster outcomes, lower costs, and predictable delivery.

Tech service providers are embedding AI in their delivery models to create efficiency, cost, and time-to-market impact for their clients, said Yugal Joshi, partner at global research firm Everest Group. “The productivity promises of 20–30% have become common,” he added.

But here’s the catch: despite the AI push, most real money still comes from traditional levers, large contract wins, multi-year deal renewals, and price-based expansions. Embedded AI keeps Indian IT competitive, but its monetisation potential is yet to unfurl.

Why Cling to Embedded AI?

Globally, Modular AI — reusable, auditable AI building blocks — is gaining momentum. But, Indian IT continues to prioritise embedded AI. Deepak Dastrala, CTO at Intellect Design Arena, explained why.

“The hesitation is less about technology and more about the prevailing business model. Indian IT is optimised for people, projects, and billable hours, not products and IP. Embedded AI fits the traditional services model perfectly.”

Modular AI demands upfront investment, a product mindset, and sometimes saying no to custom client work which is a tough shift for firms built on services scale. Limited access to high-end compute, curated datasets, and research-heavy talent adds friction.

Jayaprakash Nair, head of AI and analytics at Altimetrik, a digital business services company, pointed this out. “Creating foundational models demands sustained GPU capacity and significant capital expenditure. Fine-tuning existing models remains the practical approach.”

This is also why many internal AI accelerators, copilots, and automation engines never get productised. Indian IT has built powerful internal AI tools, but few have been converted into modular products, or subscription offerings that influence pricing or deal structures.

Embedded AI fits the current business model, and that is both its strength and limitation.

The Hidden Limits

Embedded AI boosts efficiency, but it also creates complexity.

Each project ends up with its own prompts, integrations, guardrails, and custom workflows. Over time, this produces technical debt and governance headaches. When regulations shift or base models change, you are forced to patch 10 to 50 different places. Observability and safety become a game of whack-a-mole.

As Dastrala noted,“A module reused across 10 clients reduces new-build revenue. Firms fear standardisation because it cannibalises services revenue.”

Without measurable metrics, embedded AI rarely becomes a deal-winning differentiator. Vasu highlighted, “Embedded AI is still under the hood. Firms need observability dashboards that show real-time impact on cycle time, effort saved, defects avoided, and SLA improvements.”

This lack of visibility means clients continue awarding mega-deals and renewing large contracts based on transformation scale and pricing, not on embedded AI value, because it isn’t packaged or quantified well.

Internal transformation is another challenge. Embedding AI requires rethinking workforce planning, updating delivery assets, and preparing teams for automation-driven role changes, a cultural shift that moves slower than expected.

Starting Embedded a Smart Move?

Despite its limitations, embedded AI is a logical first step. It integrates directly into existing workflows and delivers early, low-risk wins. As Joshi put it,“Starting with embedded AI helps companies deliver faster outcomes and validate impact. It creates confidence before they scale with modular AI.”

A modular foundation of reusable agents, policy checkers, KYC summarisers and governance modules helps solve long-term problems such as technical debt, versioning, security, and cross-client standardisation.

Dastrala called this hybrid approach: “Modular at the core, embedded at the edge.” This lets firms scale proven modules across clients, while customising only the last mile.

Embedded AI should evolve into a client-facing differentiator with clear ROI attribution and deal-linked monetisation, added Vasu.

Modular architectures also allow upgrades without tearing apart legacy systems. Nair noted that embedded solutions don’t always win when scaling or managing complexity. “Modular architectures reduce risk by separating functionality into components that can be upgraded independently,” he said.

The path is clear: embedded for early wins, modular for sustainable scale.

The Future: Modular at the Core

Clients won’t choose between embedded and modular AI, they will demand both. Modular AI provides governance, security, and reusability; embedded AI ensures contextual, workflow-specific integration.

“Once the API buzz fades, clients will ask platform-oriented questions. Providers who remain purely embedded will get trapped in project debt,” warned Dastrala.

Indian IT firms that can show measurable AI impact — reduced cycle time, predictable SLAs, fewer defects — already enjoy higher win ratios in transformation and managed services deals.

“But, clients still treat it [embedded AI] as table stakes because it isn’t standardised or productised,” noted Vasu.

This is where modularity becomes commercially essential. Firms that link AI impact to pricing, renewals, and value-based deals will move away from volume-led revenue and into outcome-led monetisation.

Nair summed up the opportunity: “Reusable modular blocks on top of proven embedded AI delivery models let clients start small, iterate fast, and embed fully once value is proven.”

The firms that productise their embedded intelligence — and combine it with modular building blocks — will shape how enterprises adopt AI at scale.

Conclusion

Indian IT’s AI strategy is at an inflection point. Embedded AI has delivered efficiency and client trust. But, long-term growth will come from productised, modular AI that compounds across clients, shapes deal structures, and influences pricing.

The winning formula is now clear: start embedded, scale modular, productise everything that delivers repeatable value.

Indian IT must evolve embedded AI from an internal efficiency tool into a visible, governable, monetisable product layer, because in the next wave of global technology spending, clients will expect nothing less.

The post Indian IT’s AI Turning Point: Embedded Today, Modular Tomorrow appeared first on Analytics India Magazine.