Anthropic’s Mythos AI Sparks Fresh Worries for Indian IT Sector

Indian IT stocks haven’t had a great run in 2026, with the Nifty IT index slipping about 17% so far this year. Infosys, Tata Consultancy Services, Wipro, LTIMindtree and Coforge shares have fallen more than 20% on a year-to-date basis.

The weakness comes at a time when the sector is already dealing with slower growth and limited earnings visibility. Fresh concerns have now emerged after Anthropic previewed its new artificial intelligence model, Mythos.

Analysts say the development could increase pressure on valuations and demand outlook, especially if AI-led automation starts replacing parts of traditional IT services work.

What Is Anthropic’s Mythos And Why Does It Matter?

Mythos is a new AI model being tested under a controlled rollout. Early assessments suggest it marks a sharp jump over earlier systems like Claude.

The model is designed for advanced coding and cybersecurity tasks. It can scan large blocks of code, spot weaknesses and even test how those flaws could be used.

Analysts say it has already picked up issues in older systems, including bugs that had gone unnoticed for years.

This matters because many IT services still rely on manual processes for testing, maintenance and security audits. If such work becomes more automated, the effort required could fall sharply.

The rollout is being handled carefully. Access to the model is still restricted. The company has also pointed to safety concerns, saying the system can act beyond intended limits if not handled carefully.

How Could This Impact Indian IT Companies?

The impact may not be immediate, but the direction is becoming clearer.

Brokerages expect the shift to play out over time, not in one go. Even so, companies will need to adapt. Some areas could see bigger changes. Application development and maintenance rely heavily on coding work, and this is where AI is improving quickly.

Among large firms, Infosys has higher exposure to such services, while HCL Technologies has relatively lower exposure. Mid-sized players like Persistent Systems also have a sizeable presence in this space.

If productivity rises, the number of hours needed for projects could fall. This could put pressure on billing models that rely on manpower.

At the same time, firms that start using AI in their services and build expertise in specific areas may benefit. The shift is moving away from general tools towards more focused, task-specific systems.

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What Could Limit The Impact In The Near Term?

Many large companies continue to operate on older systems. Bringing AI into these setups is not easy and usually takes time.

There are other hurdles as well. Data quality, internal rules and system complexity can slow things down. Because of this, wider adoption may take longer than expected.

This could provide some near-term support to Indian IT companies, even as long-term risks remain.

Sources:

Mint

The Hindu

Business Standard