Mphasis is doubling down on artificial intelligence as enterprises move beyond AI experimentation and begin deploying the technology at scale. The IT services company said AI now accounts for 69% of its business pipeline, highlighting a structural shift in client spending patterns and helping it achieve a record annual deal booking of over $2.1 billion in FY26.
Speaking during the company’s Q4 FY26 earnings call, CEO Nitin Rakesh said AI, data and technology platforms are no longer standalone initiatives but are becoming the foundation of enterprise transformation.
“AI, data, and technology platforms are no longer viewed as standalone initiatives. They are becoming the foundation of enterprise transformation,” Rakesh said.
According to Mphasis, enterprises are rapidly moving from pilot projects to large scale AI deployments, with a growing focus on what it calls “Agentic AI” systems that can make decisions and execute actions autonomously while maintaining governance and accountability.
Rakesh noted that clients are increasingly seeking ways to embed intelligence directly into business processes rather than limiting AI to isolated use cases.
“Clients increasingly recognize that the true value of AI lies not in isolated use cases, but in systematically embedding intelligence at scale across applications, processes, and decision flows,” he said.
The company believes the next phase of AI adoption will be driven by business functions rather than IT departments. Citing industry research, Rakesh said nearly 80% of AI-driven transformation is expected to occur outside traditional IT functions.
“AI does not primarily create value by upgrading systems. It creates value by upgrading work. It transforms how decisions are made, how customers are served, how revenue is generated, and how costs are managed,” he said.
To strengthen its AI capabilities, Mphasis recently acquired Theory and Practice and its Decision Intelligence platform, Continuum AI. The platform is designed to support real time decision making in areas such as demand forecasting, pricing, marketing and supply chain management. The acquisition also brings a portfolio of enterprise clients in the consumer packaged goods and retail sectors.
The company’s proprietary NeoIP platform remains central to its AI strategy. According to Mphasis, the platform helps clients modernize legacy systems, automate workflows and deploy AI solutions with explainability and governance built into the process.
The strategy is already translating into business wins. Mphasis said 64% of its deal wins during FY26 were AI led, while its AI-focused investments have expanded the pipeline to 2.6 times its original size since the launch of Mphasis.ai.
Looking ahead, the company expects AI-led transformation spending to remain strong despite macroeconomic uncertainties. “We expect to deliver high single-digit to low double-digit growth, supported by disciplined execution and increasing demand for AI-led transformation,” Rakesh said.
