J.P.Morgan analysts report warns of impacts on Indian IT industry as AI models, like ChatGPT to disrupt market

The release of ChatGPT has garnered significant attention, with a $10 billion investment from Microsoft earlier this month. Other tech giants such as Alphabet Inc and Baidu Inc have also announced their own developments in generative AI.

J.P.Morgan predicts that among Indian IT companies, Infosys and Tata Consultancy Services will retrain their staff more efficiently than their smaller peers due to their strong graduate hiring and training infrastructure.

The use of generative AI in the industry has certainly disrupted the market and raised questions about the future of traditional IT services. Indian IT companies will need to adapt to this changing landscape in order to remain competitive in the market.

The big tech companies like Google, Microsoft, and Baidu are investing in AI search chatbots. The launch of ChatGPT by Microsoft's partner OpenAI last year has resulted in the big tech companies launching their own AI chatbots such as Google's Bard, Baidu's Ernie Bot, and Microsoft's Bing chatbot.

The new AI search chatbots aim to provide the immediacy of a web search in addition to the strong language and grammar command of human language that ChatGPT has.

However, these AI search chatbots have faced accuracy issues and are known to produce false information. Despite the problems, companies like Microsoft see the new AI search chatbots as the future of the internet and are comparing them to the revolution in personal computing.

Microsoft has an advantage in experimenting with Bing since it is a smaller player in the search engine market compared to Google. Google's Bard chatbot has faced criticism for its inaccuracies and the lackluster reaction to the recent demonstration, causing a drop in Alphabet Inc's shares.

Naming their AI chatbots has been a challenge for the tech companies, with Bing referring to its chatbot as "Sydney" internally but not revealing the name to the users.