Background: Why Now?
Generative AI (Gen AI) as a term has become synonymous with equity market volatility. While we at the Digital & Robotics Team (DART) haven’t explored this yet, now feels like the right moment to dive in.
Our team has been having detailed discussions with entrepreneurs lately - analyzing how DART Companies will evolve over the next five years. One expert consensus stands out - Gen AI will fundamentally reshape user interfaces and customer experience.
This raises a critical question: are SaaS companies, which enable these services for consumer internet firms, already seeing these shifts reflected in their stock prices?
Methodology: Measuring Market Reaction
To analyze this trend, we looked at B2B functions most likely to be impacted by Gen AI adoption. Two groups of stocks were compared - one comprising companies operating predominantly in developed markets, and another consisting of firms with a significant presence in India.
The price performance of both groups was tracked against major advancements in Gen AI models, mapping how the market has responded to these shifts.
Adoption Levels Across Sectors Remain Somewhat Behind Reality
Despite the rising enthusiasm for Gen AI, day-to-day adoption remains relatively low, with enterprise-wide integration still under 25 percent. Some of the most vulnerable functions in the near term appear to be software development/testing and CRM, given the efficiencies Gen AI brings to process automation.

Chart A: No Gen AI use case has >25% adoption across functions
Source: Ben Evans (2025)
Market Reaction: Developed markets are already factoring in Gen AI disruption. Indian SaaS firms’ valuations remain unscathed
A stark contrast emerges when looking at stock performance in developed markets versus India.
CRM and Dev Testing specialists in developed markets - including TaskUs, Concentrix, and Teleperformance -have lost 75 percent of their market cap since January 2022. Meanwhile, Indian counterparts such as Firstsource, WNS, Genpact, Accenture, Wipro, and CTS have seen a much more measured decline.

Chart B: Secular decline in CRM/Dev-test specialists since 2022
Source: Bloomberg; DM CRM/Dev Test: Teleperformance, Concentrix, TaskUs; India CRM/Dev Test: FirstSource, WNS Global, Genpact, Accenture, Wipro
Two key moments stand out—the release of competing Gen AI models by Google, Llama, and Claude in early 2023, and the introduction of agent-friendly Gen AI models in mid-2024. Both coincided with sharp market downturns among CRM and Dev Testing stocks globally. Yet, India's response appears more restrained, raising the question of whether this reflects a more cautious market approach or a potential mispricing of risk.
What Does This All Imply?
Initial insights suggest that Gen AI may significantly reduce the time required for software deployment through improved error-checking and testing, while also enhancing ticket resolution processes.
Deflated valuations, combined with strong talent pools, could make CRM and Dev Testing firms attractive acquisition targets for consumer internet companies looking to leverage AI-driven efficiencies. These opportunities are already ripe in the western markets, and likely imminent in India as well, once pilot projects in Gen AI move into full-fledged, cross organizational implementation mode.
Whether the market is pricing this shift correctly or underestimating future risks remains an open discussion. India’s trajectory appears different—perhaps reflecting unique structural dynamics or simply a delayed market response to Gen AI’s full-scale impact.
Generative AI is an evolving subject and we would continue to monitor it closely. Stay tuned for more insights on this topic.