TLDR: Microsoft’s Chief Product Officer, Aparna Chennapragada, stated that AI agents are significantly reducing development time, effort, and cost for Indian IT services companies. She emphasized that AI is reshaping product creation and that Microsoft is focused on enabling businesses to leverage AI, rather than solely building foundational large language models. This comes as Indian organizations show high confidence in deploying AI agents, with 93% of leaders planning to do so within the next 12-18 months.
New Delhi, September 1, 2025 – Artificial intelligence is fundamentally transforming the landscape of product development, with AI agents emerging as a critical tool for Indian IT services companies to accelerate their processes. This insight comes from Aparna Chennapragada, corporate vice-president and global chief product officer (CPO) at Microsoft, who highlighted the profound impact of AI in a recent interview with Mint.
Chennapragada stated that AI agents are instrumental in helping companies reduce the time, effort, and cost associated with product development. She clarified that Microsoft’s strategy is not solely fixated on creating its own foundational large language models, but rather on empowering enterprises to effectively utilize AI. Microsoft, a key indicator for technology adoption among businesses, is positioned at the forefront of this transformative shift.
The adoption of AI agents is gaining significant traction within India. A Microsoft 2025 Work Trend Index report indicates that 93% of Indian leaders intend to deploy AI agents to enhance workforce capacity within the next 12-18 months, marking the highest level of confidence globally. This rapid integration signifies a move from traditional hierarchical structures towards more adaptive operational models, with 59% of leaders in ‘Frontier Firms’ already using AI agents to automate cross-team workflows.
Microsoft’s commitment to India’s AI ecosystem is further underscored by its strategic partnerships and investments. The company announced plans to invest US $3 billion in cloud and AI infrastructure in India over the next two years, including new data centers. Microsoft has also signed a Memorandum of Understanding (MoU) with India AI, a division of Digital India Corporation, to advance AI and emerging technologies. This collaboration aims to skill 500,000 individuals, including students, educators, developers, government officials, and women entrepreneurs, by 2026.
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Examples of AI’s practical application in India include LTIMindtree leveraging Microsoft 365 Copilot and AI agents to transform critical business functions such as pre-sales, resource management, and cybersecurity. Persistent Systems also utilized generative AI and Microsoft’s technology stack to develop ‘ContractAssIst,’ an AI-powered agent that has reportedly reduced emails during contract negotiations by 95% and cut negotiation time by 70%. These instances demonstrate how AI is enabling Indian organizations to tackle challenges, streamline processes, and unlock new levels of efficiency and growth.
