Companies across industries are asking for safe and reliable ways to use ChatGPT-like services, creating an opportunity for software developers far beyond generative-AI leaders such as OpenAI and Alphabet Inc.’s Google, a tech executive said.

India’s Happiest Minds Technologies Ltd. is planning to hire 1,300 software engineers, the IT services firm’s biggest staff growth push ever, as it builds out its artificial intelligence business to cater to clients in sectors such as education and health care seeking to tap the emerging technology, co-founder Joseph Anantharaju said in an interview. It now employs about 5,000 people.

Happiest Minds is also in partnership talks with OpenAI backer Microsoft Corp. for better access to ChatGPT, Anantharaju said, as it seeks an edge over rivals in India’s massive IT industry. While AI still accounts for a small portion of Happiest Minds’ sales, it is one the fastest-growing segments for the 12-year-old company.

The firm, which gets its revenue from helping companies digitize their services, is building tools that run on top of ChatGPT, customized to its clients’ needs, he said. These include safeguards to allow businesses to use ChatGPT without sharing proprietary data and intellectual property, a major privacy concern for its customers.

“Clients want to make the best use of ChatGPT,” Anantharaju said. “We have started demonstrating these add-on capabilities to our clients.”

Another Happiest Minds tool can detect emotions in AI-generated podcast scripts and read the text out loud like a human would, rather than doing it in a monotone robotic voice, said Chief Technology Officer Sridhar Mantha.

To be sure, it’ll take time to see how Happiest Minds’ bet will play out as competitors too are jumping into the AI frenzy. “We will have to wait for at least 10 months to get more clarity,” said Piyush Pandey, an analyst at Yes Securities. “The AI push definitely has a lot of potential, but bigger companies with more resources might be able to build on it faster.”

Happiest Minds has weathered a global slowdown in the technology industry relatively well, said Pandey, who recommends buying the shares. Its stock has climbed about 20% from a March low, outperforming India’s IT giants Tata Consultancy Services Ltd. and Infosys Ltd.

Happiest Minds was co-founded by Ashok Soota, a tech industry pioneer who has headed three outsourcing companies. The shares have risen more than five-fold since its initial public offering in September 2020.

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