AI-wrapped IT Modernization Opportunities Will Serve as Both Marketing and Revenue-generating Engines as Infosys Builds Verticalized Use Cases Tied to Outcomes to Expand AI Revenue Share

Infosys is using AI to sell modernization — not replacing modernization with AI

With front-office transformation remaining among the top AI use cases, Infosys is leaning on Infosys Aster to drive opportunities beyond campaign execution and into a broader platform for redesigning knowledge-intensive marketing and content workflows, evidenced by the deal with Handelsblatt Media Group and the launch of CMO AI hub in collaboration with ANA’s Global CMO Growth Council. These two use cases could allow Infosys to move from implementing marketing technology to advising CMOs on where AI should be deployed, but given the bespoke collaboration, the company will need to think more strategically to turn outcomes into repeatable IP and scale sales beyond one-off engagements.
 
We estimate Infosys’ Digital Marketing Services revenue was $1.8 billion in 2025 and will reach $3.1 billion by 2030, with the company largely leaning on its core application services capabilities to drive development and management of web, mobile and commerce offerings. Using Infosys Aster as the entry point to AI-led marketing transformation could help Infosys shift the revenue mix toward managed-services-led consulting work.
 
Infosys’ opportunity is not simply to sell more AI tools but also to use AI as the reason clients modernize applications, clean data, rethink workflows and consolidate vendors. That positioning matters because buyers remain practical: They want productivity, measurable outcomes and lower operating complexity, not another layer of technology hype.
 
Supporting both open and closed public models through Infosys Topaz Fabric will give the company the flexibility to strengthen its position as an AI orchestrator. We believe supporting both models is table stakes for a services provider that, for years, has played the technology-agnostic game with its alliance partners. The true value will come from Infosys’ ability to deploy its frontier engineers at speed and capture the right balance of AI-first and AI-infused revenue opportunities, as the former will help it drive higher pricing and the latter will increase client stickiness. Managing expectations for impatient shareholders will be key, especially as peers pursue similar strategies.

Capturing foundational revenue opportunities will remain essential as Infosys looks to balance driving AI-first and platform-enabled sales to build a beachhead for long-term opportunities across lines of business

As Infosys enhances and expands its AI-ready portfolio, the company understands the value of long-term IT modernization contracts, especially as AI services revenue is only 8.2% of its total revenue in 2Q26. Deal wins in 2Q26 with Truist Financial for Global Capability Center (GCC) setup and management, Sterling Bank for Finacle implementation, IHH Healthcare for AI-enabled ERP transformation, DNB Bank ASA for financial crime operations modernization, and Global Foundas for AI-enabled IT modernization and managed services, among other engagements, demonstrate Infosys’ commitment to securing its foundational revenues, especially after the company faced headwinds in renewing the entirety of its marquee deal with Mercedes-Benz in 1Q26.
 

 

 
Although we do not expect Infosys to slow its pursuit of such deals anytime soon, the company needs to balance AI labeling with real AI usage to avoid AI washing. Generating $1 billion of AI services revenue is a milestone worth recognizing, but pushing the narrative too much could increase the cannibalization of traditional revenue. While TBR will continue to monitor and estimate Infosys’ AI performance, we believe that the company will become less vocal about itemizing AI sales in the next two to three years.