Indian software services company LTM is confident that revenue from artificial intelligence will eventually surpass what it earns from traditional services — a bold bet that enterprises will turn to IT firms to help them deploy cutting-edge AI language models from developers like Anthropic and OpenAI, according to CEO Venu Lambu.
The outlook comes as investors grow increasingly nervous that more capable AI systems could threaten the core business of conventional IT services firms. That anxiety has pushed India’s Nifty IT index down more than 23% so far this year, putting it on track for its second-worst annual performance since 2008.
LTM announced a partnership with Anthropic on Monday to bring Anthropic’s Claude AI model to enterprise customers. The company believes these models will open up a new implementation market for IT firms, offering what Lambu described as “the right context at the right costs.”
Lambu said that “pretty much all” of the company’s current deals include some kind of AI component, though he noted that not every business situation requires the most expensive, high-end AI models.
He envisions AI adoption starting with smaller, varied projects — but said momentum builds quickly once results are proven. “Once you deliver a proof point to the customer, it just multiplies with the same customers,” Lambu said. He expects enterprise AI adoption to pick up speed in the second half of fiscal year 2027.
For the first time, LTM publicly disclosed its AI revenue figures — reporting $150 million on a quarterly run-rate basis, which represents 12% of the company’s total revenue. That figure spans three AI-native business segments, meaning areas where AI is built into the foundation of the product rather than added on later. Notably, LTM does not include revenue from embedding AI into existing client systems when calculating that total.
By comparison, larger competitor HCLTech reported what it calls advanced AI revenue of $171 million during the June quarter, accounting for roughly 4.6% of its overall revenue.
Lambu flagged token-based pricing as a “big concern” for clients. As AI companies shift toward charging customers based on how much they use a service, businesses are worried about runaway costs. LTM said it is focused on helping clients set up governance systems to keep both usage and expenses under control.
