Mid-tier IT firm Mphasis, which on Thursday night reported a 2.1% increase in first-quarter net profit, is now seeing a third of its deal pipeline being led by artificial intelligence, chief executive Nitin Rakesh said.Mphasis reported a net profit of Rs 404 crore for the quarter ended June 30. Revenue from operations grew 0.2% sequentially and 4.6% from a year earlier to Rs 3,420.8 crore.

“When deals are being formed, there is a healthy component of AI operations and AI infusion, elimination of manual work, reduction in volume, faster time to market … increasingly, we believe that almost every function in operations and tech will get AI infused,” Rakesh, also the company’s managing director, told ET on Friday.

From clients’ perspective, tech spends continue to be a priority, but it is getting reprioritised into areas that derive value, Rakesh said. “There is reallocation of spend on one side, and there is uncertain macro on the other side, and it’s also clear that the market for GenAI is much beyond just the tech, and much across the business spectrum—operations, customer experience, and others.”

This is reflected in the firm’s order pipeline that has seen one of the biggest jumps on a sequential basis at 17%, he said. New total contract value win came in at $319 million, of which 84% were in the new-generation services. Operating margin grew 0.1 percentage point on quarter but declined 0.4 percentage point on year to 15%.

The company’s headcount declined by 1,019 to 31,645 during the April-June quarter. Its utilisation rate increased by a percentage point to 76% in the same period.

Mid-tier IT firm Mphasis, which on Thursday night reported a 2.1% increase in first-quarter net profit, is now seeing a third of its deal pipeline being led by artificial intelligence, chief executive Nitin Rakesh said.Mphasis reported a net profit of Rs 404 crore for the quarter ended June 30. Revenue from operations grew 0.2% sequentially and 4.6% from a year earlier to Rs 3,420.8 crore.

“When deals are being formed, there is a healthy component of AI operations and AI infusion, elimination of manual work, reduction in volume, faster time to market … increasingly, we believe that almost every function in operations and tech will get AI infused,” Rakesh, also the company’s managing director, told ET on Friday.

From clients’ perspective, tech spends continue to be a priority, but it is getting reprioritised into areas that derive value, Rakesh said. “There is reallocation of spend on one side, and there is uncertain macro on the other side, and it’s also clear that the market for GenAI is much beyond just the tech, and much across the business spectrum—operations, customer experience, and others.”

This is reflected in the firm’s order pipeline that has seen one of the biggest jumps on a sequential basis at 17%, he said. New total contract value win came in at $319 million, of which 84% were in the new-generation services. Operating margin grew 0.1 percentage point on quarter but declined 0.4 percentage point on year to 15%.

The company’s headcount declined by 1,019 to 31,645 during the April-June quarter. Its utilisation rate increased by a percentage point to 76% in the same period.