Bengaluru, Dec. 25 -- Artificial intelligence has emerged as the fastest-growing segment for large IT services companies, but with a twist. Experts and industry leaders both say that the red-hot technology is not materially expanding revenues, instead improving efficiency while cannibalising current revenue visibility.

For Accenture Plc, the world's biggest IT services company, advanced AI revenue more than doubled year-on-year (y-o-y) to $1.1 billion, against a 5.95% y-o-y rise in quarterly revenue of $18.74 billion in the September-November quarter. Further, AI bookings accounted for 11% of the $20.8 billion in new bookings in the same quarter, more than four times their share two years ago.

Alongside, Tata Consultancy Services (TCS),...