4 hrs ago
Capgemini CEO Says AI Debate Still Shadows IT Services
People are debating whether artificial intelligence will be good or bad for IT services companies.
AI may let companies complete some technology work with fewer people.
That could reduce demand for some traditional IT services.
Capgemini CEO Aiman Ezzat says AI will also create many new projects.
Companies will need to change their technology, processes, workers’ skills and sometimes their business models to use AI.
He estimates this new work could be worth $400 billion to $500 billion.
Capgemini expects the wider IT services industry to grow 4%-5% over the next three to four years if this opportunity develops.
The company is doing better and raised its 2026 growth forecast.
However, investors still do not know whether AI will create more work than it removes.
Capgemini CEO Aiman Ezzat says investors remain divided over whether AI will help or hurt IT services.
Investors are questioning whether AI-driven productivity will reduce clients’ need to outsource technology work.
Ezzat says implementing AI at scale will require changes to technology, processes, skills, culture and business models.
He estimates new AI-related opportunities could be worth $400 billion to $500 billion and support 4%-5% industry growth over three to four years.
Capgemini raised its 2026 revenue-growth forecast to 8.5%-9%, while first-half revenue reached €12.1 billion.
- Who
- Capgemini CEO Aiman Ezzat and investors in the IT services industry.
- What
- They are assessing whether artificial intelligence will reduce traditional IT services work or create enough new demand to expand the sector.
- Where
- The comments were made in an exclusive interview with CNBC-TV18; the article discusses the global IT services industry without specifying a separate location.
- When
- The outlook covers the coming years, including the next three to four years and Capgemini’s 2026 forecast; the company could begin reporting AI-related figures next year.
- Why
- AI may make existing technology work cheaper while requiring major organizational and technological transformations that could generate new services demand.
AI Creates New IT Services Demand
AI Reduces Traditional IT Services Demand
Overall effect of AI
AI Creates New IT Services Demand
Aiman Ezzat says AI implementation requires broad changes to technology, processes, organizational structures, skills, performance measures, culture and sometimes business models, creating substantial new work for IT services companies.
AI Reduces Traditional IT Services Demand
Some investors believe AI agents will replace knowledge workers, sharply increase productivity and allow clients to perform more technology work themselves.
Industry growth outlook
AI Creates New IT Services Demand
Ezzat estimates a $400 billion-$500 billion AI-related market and expects IT services growth of about 4%-5% over the next three to four years.
AI Reduces Traditional IT Services Demand
Without the new AI opportunity, Ezzat says industry growth would be broadly flat because productivity-driven deflation would make traditional IT services cheaper to deliver.
Meaning of the stock recovery
AI Creates New IT Services Demand
The recovery in IT services stocks may reflect expectations that AI will create a large new market and support a lasting sector re-rating.
AI Reduces Traditional IT Services Demand
The rebound could be only a tactical bounce, with investors still uncertain whether AI will destroy more traditional work than it creates.
Key facts
- Speaker
- Aiman Ezzat, Capgemini chief executive
- Estimated AI market opportunity
- Roughly $400 billion to $500 billion over the coming years
- Expected industry growth
- Around 4%-5% over the next three to four years, followed by faster growth thereafter
- Capgemini 2026 revenue forecast
- 8.5%-9%, raised from 6.5%-8.5%
- First-half revenue
- €12.1 billion
- First-half constant-currency growth
- 11.3%
- Potential AI disclosure
- Capgemini could begin disclosing AI-related numbers next year after developing a more consistent definition
Quotes
Aiman Ezzat
Chief executive of Capgemini
“I don't think we are yet out of that story. I still think there are still very mixed views in the investor community in terms of what's going to happen”
CNBC TV 18
“This is a fundamental transformation of companies”
CNBC TV 18
Sources
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