Nikkei Asia reports that Tata Consultancy Services (TCS) and Infosys, leading Indian IT companies, showed significant growth in AI-related revenue in their recent third-quarter earnings reports. TCS saw its annualized AI revenue grow over 19% in the July-September quarter, while Infosys's AI revenue increased by 29% quarter-over-quarter. Analysts note that while the deployment of AI technology in traditional software systems has driven growth in high-margin contracts, the productivity gains brought by AI have also squeezed revenue from traditional businesses, putting pressure on overall revenue.