Both large and mid-tier Indian IT firms are adapting fast to new AI technologies. They are doing this through internal steps, buying other companies, and joining forces with global tech partners. This helps them improve services and work faster for clients. Recently, AI advances from OpenAI and Anthropic have made waves. Their new AI models build software codes more accurately than before. This surprised investors and caused a 15% fall in the BSE IT index over eight trading days by February 13. Many worried about traditional software companies that rely on many programmers. However, experts say this is a short-term reaction rather than a sign of major change. In truth, Indian IT exporters like TCS, Infosys, HCL Technologies, Wipro, and Tech Mahindra keep winning big deals. From mid-2023 to December 2025, their total contract value stayed above $20 billion each quarter. It rose to $21.5 billion in the latest quarter, up from $17.4 billion two years ago. These firms train their teams on AI and share productivity gains with clients. This keeps their offerings relevant and in demand. Also, stock valuations are settling as price-earnings ratios move away from usual averages. In brief, Indian IT companies are rapidly embracing AI to boost efficiency. Despite current stock market jitters, their steady deal wins show a promising future.