By BD Narayankar
Bengaluru, Jan 23 (.) The rise of AI-driven software does not necessarily spell the end of competition in the tech industry, according to Mphasis CEO Nitin Rakesh.
Speaking on the increasingly discussed phenomenon of “software eating software,” Rakesh said that while automation is reshaping enterprise operations, humans remain firmly in control.
“The fear that AI will create monopolies is overblown,” he told .. “It’s not like one platform is dominant or two are dominant. There will still be quite a significant number of platforms.”
He acknowledged the clout of three major hyperscalers but argued that their influence does not amount to a monopoly or even a duopoly. Tens of thousands of deployable large language models (LLMs) globally ensure that competition continues to thrive, with startups, mid-sized firms, and niche developers actively innovating alongside the giants. “Capitalism will take care of the dominance issue,” Rakesh added.
Beyond market dynamics, Rakesh stressed the importance of ethical and regulatory oversight in the deployment of autonomous software. “Software leading software is only to disentangle and eliminate the overreliance on old systems,” he explained. “We’re not trying to create a supercomputer that writes all software on the cloud. The goal is to understand and manage outputs rather than blindly rely on legacy code we don’t fully understand.” He noted that this approach not only streamlines operations but also helps companies modernise complex IT infrastructures while mitigating risk.
Regulatory compliance, data privacy, and sector-specific standards, including HIPAA for healthcare data, remain central to this evolution. Autonomous software is designed to enhance efficiency, transparency, and reliability while adhering to ethical and legal safeguards. Rakesh also highlighted the need for industry collaboration and standards-setting to ensure AI adoption benefits society broadly.
Contextual automation, he said, is key. AI systems are meant to improve operational visibility and workflow efficiency—not replace human judgment. “The focus is on practical, contextual software engineering that helps us understand what sits in the system, rather than creating a black-box supercomputer,” he added.
Concluding his remarks, Rakesh framed the broader picture: “Software eating software represents a nuanced evolution in technology. While automation can enhance productivity and reliability, human oversight and ethical safeguards remain central. Competition and accountability are not lost; they are evolving alongside innovation.”
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