Physical artificial intelligence offers engineering services companies better pricing opportunities than conventional software development work, even as AI tools reduce the effort required to deliver projects, L&T Technology Services (LTTS) chief executive officer and managing director Amit Chadha has said.
The comments assumes importance as AI-driven productivity gains are put pricing pressure on engineering and IT services, prompting companies to pursue physical AI as a new growth opportunity.
LTTS sees physical AI, which applies to products, manufacturing and industrial operations, as a new growth avenue that could help offset pricing pressures, Chadha said at the launch of LTTS' physical AI lab in Bengaluru on October 12.
“The deflationary part that's there is more in the IT side, is more in the software tools to do product development side,” Chadha said, adding LTTS was offsetting the impact through newer AI business opportunities for products and manufacturing.
“It's not a commodity game,” he said, referring to the pricing of physical AI solutions.