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Nandan Nilekani Warns: AI is a 'Root and Branch Reset' for Business

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  Published in Science and Technology on Tuesday, February 17th 2026 at 4:17 GMT by moneycontrol.com
      Locales: Karnataka, INDIA

Bangalore, India - February 17th, 2026 - Nandan Nilekani, the influential co-founder and Chairman of Indian IT giant Infosys, is issuing a stark yet pragmatic warning to businesses globally: Artificial Intelligence (AI) isn't just another technological upgrade; it's a fundamental disruption requiring a complete re-evaluation of strategies, processes, and even core values. In a recent interview, Nilekani described AI as a 'root and branch reset' for the business world, urging leaders to move beyond the hype and focus on practical application.

Nilekani's assessment arrives at a pivotal moment. Across India, and increasingly worldwide, companies are aggressively exploring and implementing AI solutions. However, the speed of adoption often outpaces strategic thinking, leading to wasted investment and unrealized potential. Nilekani stresses that simply doing AI isn't enough. Businesses must critically analyze how AI can address specific challenges and improve existing operations, rather than chasing the latest buzzwords.

Beyond Automation: A Paradigm Shift

While automation is an immediate benefit of AI, Nilekani believes the impact extends far beyond streamlining existing tasks. "This isn't about replacing humans with machines," he explained. "It's about augmenting human capabilities, unlocking new insights from data, and creating entirely new business models. Companies need to ask themselves, 'what problems can AI solve for us that we couldn't solve before?' and 'how does this change our competitive landscape?'"

The scale of this change necessitates a proactive approach. Nilekani anticipates widespread disruption across all industries and job functions, requiring businesses to not only adapt but also to anticipate future shifts. Delaying action, he warns, risks being left behind.

The Three Pillars of AI Success

Nilekani outlined three crucial pillars that businesses must prioritize to successfully navigate the AI revolution:

• Talent Acquisition & Development: "AI isn't a plug-and-play technology," Nilekani stated. "You need skilled professionals who understand the nuances of AI, data science, machine learning, and how to apply these technologies to real-world problems." This doesn't necessarily mean hiring exclusively AI specialists. Upskilling existing employees, fostering a culture of continuous learning, and attracting talent with adaptable skillsets are equally vital. The demand for AI-literate workers is already exceeding supply, creating a significant challenge for businesses.

• Robust Data Infrastructure: AI algorithms are only as good as the data they're trained on. Nilekani emphasizes the need for a "robust data infrastructure" that ensures data is accurate, accessible, and well-governed. This includes investing in data storage, data pipelines, data quality control, and data security measures. Moreover, organizations must overcome data silos and integrate data from various sources to gain a holistic view of their operations. The rise of federated learning and edge computing are also becoming important aspects of a resilient data strategy.

• Ethical Considerations: Perhaps most critically, Nilekani stresses the importance of ethical AI development and deployment. "As AI becomes more pervasive, we must address the ethical implications," he argues. "Issues like bias, fairness, transparency, and accountability are paramount." Businesses need to establish clear ethical guidelines, develop mechanisms for monitoring and mitigating bias in AI systems, and ensure that AI is used responsibly and in a way that aligns with societal values. Growing regulatory scrutiny around AI ethics is adding further urgency to this issue.

Infosys Leading the Charge

Infosys itself is heavily invested in AI research and development, boasting a substantial AI practice. The company is developing a range of AI-powered products and services designed to help businesses adopt AI across various functions, including customer service, supply chain management, and cybersecurity. Recent announcements include a new AI-powered platform for personalized learning and development, and a suite of tools for automating software testing. Infosys is also actively collaborating with academic institutions and industry partners to advance AI research and promote responsible AI practices.

Looking Ahead The coming years promise to be transformative for businesses. Nilekani's message is clear: AI isn't a trend to be passively observed--it's a force that demands proactive engagement, strategic planning, and a commitment to ethical principles. Those who embrace this change with foresight and purpose will be best positioned to thrive in the new era of intelligent automation.