Tech Mahindra Ramps Up R&D, Global Models to Compete in AI Market.

India’s IT giant Tech Mahindra has embarked on building its own AI “world models” designed to simulate real-world scenarios across sectors such as telecom and healthcare, in a strategic push to maintain a lead in the rapidly evolving AI landscape.

“At this point in time, customers are not asking for such models, but in six months to one year they are going to expect AI to be contextually relevant to changes in a process. Focusing on these levers allows Tech Mahindra to plan future actions,” said Nikhil Malhotra, Chief Innovation Officer and Global Head of AI and Emerging Technologies at Tech Mahindra.

The company reported that around 70% of its new large deals, each with a total contract value of $1 billion as per its Q3 earnings, already include AI capabilities. In addition to business applications, Tech Mahindra is exploring AI-driven security solutions, including experiments with Anthropic’s MCP protocol, to assess how agentic enterprises can implement next-generation security measures.

This move reflects the growing trend among IT services firms in India to proactively develop AI tools that anticipate client needs, even before the demand materializes.