AI Contract Values Vary Widely, Ranging from $10 Million to Hundreds of Millions, Says Cognizant CFO

Cognizant CFO Highlights Early Adoption of AI in Enterprise Market

Summary Enterprise adoption of artificial intelligence (AI) is gaining momentum, but deal sizes remain smaller than traditional IT services contracts. According to Jatin Dalal, Chief Financial Officer (CFO) of Cognizant, AI-related engagements typically range between $8 million and $12 million in total contract value (TCV).

Deal Sizes AI-related contracts are smaller in size, ranging from $8 million to $10 million, and $12 million in TCV, compared to traditional contracts which can reach $200 million, $300 million, and $500 million. This is a typical trend for emerging technologies in the early stages of enterprise deployment.

Industry Shift The industry is moving away from experimental proof-of-concept (POC) projects to more meaningful AI implementations that have a real impact on business operations. Recent deployments of agentic AI solutions for logistics and food processing industries demonstrate this shift. Enterprises are exploring how to integrate AI across their technology stack, including compute infrastructure, large language models, data training requirements, and software agents.

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Enterprise Adoption Enterprises typically begin with a business problem and then evaluate the combination of infrastructure, models, and agents required to build a workable AI solution. This approach is driving growth for IT services companies, as enterprise adoption goes beyond experimentation.

Growth Driver AI-led work is gradually becoming an important growth driver for IT services companies, with Cognizant poised to capture value in the new world of AI.