Top Tier India IT Bets on Physical AI as Coding Demand Declines
India’s IT and BPO firms are pivoting to physical AI, training robots by capturing human labor movements in Bengaluru, while companies like HCL Tech and Braiin Limited seek higher-value roles beyond data collection. A Capgemini survey shows 79% of organizations are already adopting physical AI, with experts warning Indian firms must avoid low-end data-labeling to capture lucrative opportunities in AI-driven automation.
India’s IT and BPO industry is shifting focus to physical AI as demand for traditional coding and back-office work declines due to autonomous AI tools like Anthropic’s Claude. In Bengaluru, workers earn around 300 rupees ($3) per hour by recording their movements with head-mounted cameras, feeding data into AI systems to teach robots tasks like factory assembly or inventory management. Physical AI replicates human actions by processing vast datasets—captured through cameras, sensors, and real-world equipment interactions—to train robots. Indian firms are now leading in collecting, verifying, and organizing this data, transforming routine human activity into training material for machines. HCL Tech highlighted growing momentum in AI-powered solutions like physical AI during its Q3 press conference. A Capgemini survey found 79% of organizations already engaged with physical AI, signaling strong global demand. Nataraj Balasubramanian, CEO of Nasdaq-listed Braiin Limited, warned Indian companies must move beyond low-end data labeling to secure higher-value roles in the AI pipeline. Traditional BPO services rely on cost competition, but physical AI requires specialized expertise, allowing firms to command premium fees and long-term client relationships. Balasubramanian emphasized that success depends on controlling the entire data pipeline—from collection to model-ready datasets—rather than just supplying raw information. Indian firms are responding by securing contracts with major industrial clients. HCL Tech, for example, won an aviation maintenance deal and launched its AI platform, TraceX, to support aircraft cargo operations. The shift reflects a broader industry strategy to dominate higher-value AI services rather than remain low-cost data providers.
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