New Delhi, Feb. 14 -- Artificial Intelligence (AI) is unlikely to eliminate the need for IT services. Instead, it will become "another tool to address more work with the same budget," much like offshore labor, enterprise software, and cloud computing in previous technology cycles, according to a report by J.P. Morgan's Asia Pacific Equity Research team.

In its note titled "India IT Services: Looking through the AI fog 2 -- Discounted for extinction? Div/FCF yields at crisis levels," JP Morgan argued that AI will create net new areas of work rather than shrink the opportunity set for IT vendors.

"Thus AI will be another tool to address more work with the same budget like offshore labor, enterprise software, cloud have been in the past," ...