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On 14th May 2026, the stocks of both TCS and Infosys plummeted to new 52-week lows, following the news of an enhanced ChatGPT Enterprise service juggling high-level coding, software maintenance, and business process automation from OpenAI.

The new offering has been dubbed a direct competitor to the conventional outsourcing model, which fuels most of the $250 billion IT business in India. TCS lost nearly 4.8% and Infosys lost over 5.2% in the session, valuing the papers to the tune of thousands of crores of rupees.

Experts say that as more companies are expected to start using generative AI tools, the demand for routine IT services will come down, and helpful revenue growth will be slow for the country's companies. The market response has been quite negative, highlighting concerns about the pressure on margins and future order books for both companies, yet significant investments in AI mark the current focus.

Elliot-fired experts caution investors that they should watch as closely the adaptability of TCS and Infosys to the rapidly changing AI ecosystem.