New Delhi, July 28 -- The advance of artificial intelligence (AI) may shrink some business and lead to reshuffle of employees, but it will also create new revenue streams, Hexaware Technologies Ltd CEO Srikrishna Ramakarthikeyan said.

His comments came after Hexaware slipped two places in the Indian IT pecking order to No.10, ending the June quarter with $382 million in revenue, up 2.8% sequentially.

"On the negative side, I think there will be some compression in IT operations when new deals are done or when deals are renewed. There's some compression in software development as a consequence of AI," Ramakarthikeyan said on Friday.

Still, he said AI is going to create new revenue, even as the negative impacts are not "significant enoug...