Starbucks Brings AI Wali Chai — Should India's IT Industry Be Worried?
Before you take that next sip of your chai latte at Starbucks, you're about to see Artificial Intelligence (AI) in your tea. Yes you heard it right, but relax, you don't need to put the cup down, because it's not blended in like a new masala and nobody's adding AI as an ingredient. But AI will be deciding how much stock gets ordered, when the machine needs a service call, how the whole backend of your favourite coffee chain runs.
Here's what's actually going on. Starbucks has been quietly building its own AI to replace the systems Oracle, Microsoft, and IBM used to run for it, for the services such as inventory, equipment management, even the point-of-sale software every outlet depends on. In short: Starbucks decided it does not want to outsource its backend anymore. It wants to build the brain itself.
Sounds fascinating on the surface. A coffee company doing its own AI R&D, right? Except dig one layer deeper, and it stops being cool and starts being a conundrum. Here's the actual link: companies like Starbucks are Indian IT's bread and butter. This is literally the business model, global companies pay Indian IT firms like TCS, HCL, Infosys, Wipro to run exactly this kind of backend work: inventory systems, equipment management, point-of-sale software, IT infrastructure. That's what pays the salaries of roughly 6 million people employed by India's outsourcing industry.
However, recently, this workforce has been shrinking rather than growing. TCS, the largest player in the industry, reported just 0.4 percent revenue growth in the quarter after stripping out currency fluctuations, its slowest expansion in a year, while its workforce shrank by around 3 percent over the past year to about 594,000 employees. At smaller rival HCL Technologies, sales actually slipped 0.5 percent quarter on quarter. Company wide, TCS let go of over 23,000 employees in FY26 alone, citing its pivot toward an AI first services model and reduced bench requirements per client engagement, with a steep net decline of over 11,000 employees in the most recent quarter alone.
AI's impact on India's IT industry and workforce
India's IT sector employs close to 6 million people, and a large share of that workforce has built careers around exactly the kind of work now being absorbed by AI: inventory systems, equipment monitoring, point of sale software, and other repetitive backend operations. As more global clients explore building these capabilities in house, the demand for large teams doing routine maintenance work is likely to shrink. This does not mean mass job losses overnight, but it does suggest a shift in what kind of talent gets hired and retained. Entry level, process driven roles may see slower growth, while demand rises for professionals who can design, audit, and govern AI systems rather than simply maintain legacy software. For India's IT workforce, the challenge is less about competing with AI and more about repositioning around it, moving up the value chain before the shift forces the decision.
Beyond One Coffee Chain ~ The Real Shift in Global Outsourcing
Starbucks isn't an isolated case; it's a visible example of a much wider recalibration. For two decades, the operating assumption in enterprise software was that building complex, mission-critical systems in-house was too slow, too risky, and too expensive compared to buying from established vendors. AI-assisted coding is chipping away at that assumption. What used to require large, specialised engineering teams and years of development can now be prototyped and iterated on far faster enough that even a company whose core business is coffee, not code, can seriously consider building its own enterprise software stack.
However it is also worth noting that this transition isn't frictionless. Starbucks itself had to walk back an AI-powered inventory-counting tool earlier this year after it produced inaccurate counts, reverting stores to manual counting. Building in-house AI systems is not automatically smoother or more reliable than buying proven software; it just shifts the risk and the learning curve onto the company doing the building.
Disruption and Opportunity, Side by Side
None of this means Indian IT companies can afford to sit still. The Starbucks example offers a legitimate signal that repetitive, well defined, automatable work, especially when powered by in house built AI, genuinely poses some risk or not. But it cannot be seen only through the lens of the industry's obituary. It would be premature to call this a broader decline in terms of IT professionals, companies, or jobs.
The same earnings season also brought TCS's expanded AI mandate with ABB and HCL's $1.14 billion AI driven contract in Europe. Demand has not disappeared, it appears to be evolving from routine maintenance work toward AI native, higher value engagement.
Whether this becomes a meaningful structural shift or simply another cycle the industry eventually absorbs remains to be seen. What seems clear for now is that the path forward depends less on resisting the shift and more on how quickly the industry chooses to embrace it.
Conclusion
AI is a double-edged sword. While it challenges the old model of outsourcing via a maintenance and staff augmentation play, it also provides new, high-value services opportunities around AI integration, data infrastructure, and governance-areas where the scale, domain expertise, and global delivery experience that Indian IT has amassed over three decades is essential. Whether India's IT majors will move fast enough to upskill, re-skill, and reposition to ride this wave before the opportunity heads somewhere else, is the question to watch, rather than the survival of one vendor or contract.
Sources
- Bloomberg Opinion - Andy Mukherjee, "You Can't Spell Chai Latte Without AI, and That Will Hurt India.” bloomberg.com/opinion/articles/2026-07-14/you-can-t-spell-chai-latte-without-ai-that-will-hurt-india
- Yahoo Finance / Vlad Schepkov, "Starbucks Working on AI Tools to Replace Microsoft and IBM Software – Report," July 9, 2026. finance.yahoo.com/technology/ai/articles/starbucks-working-ai-tools-replace-105954159.html
- Livemint - Andy Mukherjee, "As Starbucks Mixes AI in Chai Latte, What Must IT Players Do?" Mint Curator.
livemint.com/opinion/online-views/andy-mukherjee-india-it-industry-starbucks-ai-tc-hcl-tech-artificial-intelligence-oracle-microsoft-ibm-11784118723454.html - Metaintro, "TCS and Infosys Face an AI Reckoning" https://www.metaintro.com/blog/tcs-infosys-ai-reckoning-millions-it-jobs-2026
- LayoffTrends, "IT Layoffs India 2026 — TCS, Infosys, Wipro, GCC Jobs" https://layofftrends.com/india.html
- NiftyTrader, "Hiring Slows at India's Top IT Firms — Net Headcount Falls in 9MFY26" https://www.niftytrader.in/markets/hiring-slows-at-indias-top-it-firms-net-headcount-falls-in-9mfy26-what-it-signals-for-the-sector/
- TCS official newsroom, "TCS and ABB Sign Multi-Million, Multi-Year Deal to Transform Global Network Operations with AI," tcs.com/who-we-are/newsroom/press-release/tcs-and-abb-sign-multi-million-multi-year-deal-to-transform-global-network-operations-with-ai
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Introduction
Sexual Offences against children have recently come under scrutiny after the decision of the Madras High Court which has ruled that watching and downloading child sexual porn is an inchoate crime. In response, the Supreme Court, on 23 September 2024, ruled that Section 15 of the POCSO and Section 67B of the IT Act penalise any form of use of child pornography, including storing and watching such pornographic content. Along with this, the Supreme Court has further recommended replacing the term “Child Pornography” which it said acts as a misnomer and does not capture the full extent of the crime, with a more inclusive term “Child Sexual Exploitative and Abuse Material” (CESAM). This term would more accurately reflect the reality that these images and videos are not merely pornographic but are records of incidents, where a child has either been sexually exploited and abused or where any abuse of children has been portrayed through any self-generated visual depiction.
Intermediaries cannot claim exemption from Liability U/S 79
Previously, intermediaries claimed safe harbour by only complying with the requirements stipulated under the MOU. As per the decision of the SC, now, an intermediary cannot claim exemption from the liability under Section 79 of the IT Act for any third-party information, data, or communication link made available or hosted by it unless due diligence is conducted by it and compliance is made of these provisions of the POCSO Act. This is as per the provisions of Sections 19 and 20 of the POCSO read with Rule 11 of the POCSO Rules which have a mandatory nature.
The due diligence under section 79 of the IT Act includes the removal of child pornographic content and immediate reporting of such content to the concerned police units in the manner specified under the POCSO Act and the Rules. In this way, the Supreme Court has broadened the Interpretation and scope of the ‘Due Diligence’ obligation under section 79 of the IT Act. It was also stated that is to be duly noted that merely because an intermediary complies with the IT Act, will not absolve it of any liability under the POCSO. This is unless it duly complies with the requirements and procedure set out under it, particularly Section 20 of the POCSO Act and Rule 11 of the POCSO Rules.
Bar on Judicial Use of the term ‘Child Porn’
Supreme Court found that the term child pornography can be trivialised as pornography is often seen as a consensual act between adults. Supreme Court emphasised using the term Child Sexual Exploitative and Abuse Material (CESAM) as it would emphasise the exploitation of children highlight the criminality of the act and shift the focus to a more robust framework to counter these crimes. The Supreme Court also stated that the Union of India should consider amending the POCSO Act to replace the "child pornography" term with "child sexual exploitative and abuse material" (CSEAM). This would reflect more accurately on the reality of such offences. Supreme Court also directed that the term "child pornography" shall not be used in any judicial order or judgment, and instead, the term "CSEAM" should be endorsed.
Curbing CSEAM Content on Social Media Platforms
Social Media Intermediaries and Expert Organisations play an important role in curbing CESAM content. Per the directions of the Apex Court, a need to impart positive age-appropriate sex education to prevent youth from engaging in harmful sexual behaviours, including the distribution, and viewing of CSEAM is important and all stakeholders must engage in proactive measures to counter these offences which are under the umbrella of CSEAM. This should entail promoting age-appropriated and lawful content on social media platforms and social media platforms to ensure compliance with applicable provisions.
Conclusion
In light of the Supreme Court’s landmark ruling, it is imperative to acknowledge the pressing necessity of establishing a safer online environment that shields children from exploitation. The shift towards using "Child Sexual Exploitative and Abuse Material" (CSEAM) emphasizes the severity of the crime and the need for a vigilant response. The social media intermediaries must respect their commitment to report and remove exploitive content and must ensure compliance with POCSO and IT regulations. Furthermore, comprehensive, age-appropriate sex education can also be used as a preventive measure, educating young people about the moral and legal ramifications of sexual offences, encouraging respect and awareness and ensuring safer cyberspace.
References
- https://www.scconline.com/blog/post/2024/09/23/storing-watching-child-pornography-crime-supreme-court-pocso-it-act/#:~:text=Supreme%20Court%3A%20The%20bench%20of,watching%20of%20such%20pornographic%20content
- https://timesofindia.indiatimes.com/india/supreme-court-viewing-child-porn-is-offence-under-pocso-it-acts/articleshow/113613572.cms
- https://bwlegalworld.com/article/dont-use-term-child-pornography-says-sc-urges-parliament-to-amend-pocso-act-534053
- https://indianexpress.com/article/india/child-pornography-law-pocso-it-supreme-court-9583376/
Executive Summary
A video is being widely shared on social media claiming to show a Saudi Arabian F-15 fighter jet carrying out an airstrike on Sanaa International Airport in Yemen's capital. The footage shows several aircraft parked at what appears to be an airport before explosions erupt, followed by flames, thick smoke and people running in panic. The CyberPeace Research Wing found that the viral claim is false. Our research revealed that the circulating video is AI-generated and does not depict the actual airstrike. While it is true that Saudi Arabia carried out an airstrike at Sanaa International Airport, the viral footage is unrelated to that incident and is being shared with a misleading claim.
Claim
An Instagram post shared on July 15, 2026, claims that Saudi Arabia's F-15 fighter jets bombed Sanaa International Airport in Yemen. The post can be viewed here:
https://www.instagram.com/reel/DayBwufzn2N/?utm_source=ig_web_button_share_sheet
Fact Check
To verify the claim, we searched using relevant keywords but found no credible news reports or authentic footage matching the viral video. However, we found verified footage of the actual Saudi airstrike on The New York Post's YouTube channel. A comparison showed that the genuine footage is entirely different from the viral clip in terms of visuals, sequence and overall content.
https://www.instagram.com/reel/DawHCM_s_fn/?utm_source=ig_web_button_share_sheet
During our research, we also found the same viral video on an Instagram account named "warfarenextgen", which regularly publishes AI-generated war-related videos
We further examined the video using multiple AI detection tools: Hive Moderation assessed the video as 99.9% likely to be AI-generated.
DetectVideo AI found a 76% probability that the video was AI-generated.
Sightengine also concluded that the video was approximately 99% likely to be AI-generated.
Conclusion
Our research found that Saudi Arabia did carry out an airstrike on Sanaa International Airport to prevent an Iranian aircraft carrying a Houthi delegation from landing. However, the viral video does not show that attack. It is an AI-generated video that is being falsely circulated as footage of the real incident, making the viral claim misleading.
Executive Summery
A video is being widely shared on social media claiming that a man seen working at a brick kiln is an Australian citizen named “Anderson.” The claim states that he lost his passport and all his belongings after a theft in Agra, following which he was forced to work at a brick kiln for survival. Social media users are circulating the video as a shameful incident and are also appealing for the return of his stolen passport and belongings so that he can safely return to his country. CyberPeace Research Wing research found that the viral story is completely false and fabricated. For verification, we first conducted a keyword-based search on Google, but did not find any credible news report or media coverage supporting such an incident. Had this event been true, it would have certainly been reported by mainstream media outlets.
Claim
Facebook user ‘Yadav Roshni’ posted a video on June 23, 2026 (archive link) along with a caption claiming that an Australian tourist named “Anderson” visited Agra (Uttar Pradesh) to explore India’s culture and heritage, but was allegedly robbed during his visit. The post claims that thieves stole his passport, money, and all his belongings, leaving him helpless in a foreign country It further alleges that after losing everything, the tourist was forced to work as a labourer at a brick kiln to survive. The post describes the incident as shameful and appeals to users to widely share the video so that it reaches authorities, and requests that whoever stole his belongings return them so that he can safely return to his home country.
https://www.facebook.com/reel/1001213176107998 , https://perma.cc/MB8S-ZD24?type=standard
Fact Check
We then extracted keyframes from the viral video and performed a Google Lens search. This led us to an Instagram video posted by user sahildeshwal7500 on June 25, 2026. In this video, the person seen in the viral clip is identified as a resident of Katha village in Baghpat, Uttar Pradesh, named Sahil Deshwal. He himself clarifies in the video that the viral claim is false and that his footage was misused and shared with a fake narrative.
https://www.instagram.com/reels/DaAEB7wJkG-/
Further, another Instagram user dipendrakiduniya also posted clarification on June 25, 2026. In the video, the same individual and his brother clearly deny the “Anderson” identity claim and confirm that the viral story is completely false. They state that he is an Indian labourer working at a brick kiln in Baghpat.
https://www.instagram.com/reels/DaAZgXtjaYI/
Conclusion
The viral claim that an Australian citizen named Anderson lost his passport and belongings in Agra and was forced to work at a brick kiln is completely false. The person seen in the video is a resident of Baghpat, Uttar Pradesh. The story circulating on social media is fabricated and misleading.
