Infosys expands partnership with Finlands Metsä Group to drive AI-led IT transformation

In August 2026, Infosys recently expanded its long-standing partnership with Metsa Group under a multi-year agreement to modernize the Finnish company’s IT operations and introduce AI-driven service management across its global business.

As part of the engagement, Infosys will manage application services, cloud operations, workplace services, service desk functions, and IT/OT support across Metsä Group’s mills and office locations. The initiative aims to consolidate the company’s IT landscape into a more unified and AI-ready operating model. The transformation will be powered by Infosys Topaz Fabric, the company’s agentic AI services platform, which will be used to automate IT operations, improve service delivery, accelerate issue resolution, and support cost optimization.

Infosys will draw on its industry expertise and technology capabilities to manage Metsä Group’s application management, cloud operations, workplace services, on-site IT/OT interface support, and service desk operations across both mill and office locations. Through these efforts, Infosys will help drive productivity and economies of scale, while laying the groundwork for continuous innovation through automation, generative AI, and data-driven service management. Infosys will also support the transformation of Metsa Group’s IT landscape towards a more efficient, unified, and AI-ready operating model, while delivering end-to-end IT services across the company’s global operations.

Infosys said that the expanded engagement is also intended to help Metsa Group improve operational efficiency while laying the foundation for greater use of automation, generative AI, and data-driven IT management.

Impact on the AI Market

In the fast-evolving landscape of AI services, partnerships and alliances between companies are becoming increasingly crucial. Collaborations and partnerships enable firms to leverage each other’s strengths, access new markets, and foster innovation, thus resulting in mutual benefits. The ability to innovate, scale, and deliver true value to customers is no longer a function of what a single company can do, but of what it can achieve in concert with others. These alliances are not mere tactical arrangements or simple sales channels; they are the fundamental, load-bearing pillars of modern business strategy.

Strategic alliances and collaborative arrangements between two or more organizations that maintain their independence while pursuing mutual goals have become essential vehicles for navigating the AI revolution. Unlike previous technological disruptions, AI development now demands unprecedented levels of cross-disciplinary expertise, massive computational resources, and access to vast datasets. These requirements have given rise to novel forms of collaboration that go beyond traditional industry boundaries and competitive dynamics.

Central to the transformation is Infosys Topaz Fabric, which is a purpose-built, composable, and open agentic services suite that will power agentic AI capabilities and embed intelligence across Metsä Group’s IT operations. It will also help lift service delivery, speed up issue resolution, and enable cost savings across the expanded engagement.

Impact on the Artificial Intelligence of Things (AIoT) Market

The global artificial intelligence of things (AIoT) market size accounted for USD 225.89 million in 2025 and is predicted to increase from USD 297.60 million in 2026 to approximately USD 3,248.22 million by 2035, expanding at a CAGR of 30.55% from 2026 to 2035.

According to Precedence Research, the market is driven by the increasing demand for intelligent automation, real-time data analytics, and smart infrastructure across industries. The increasing need for automation, real-time analytics, and smart infrastructure is fueling the expansion of AIoT use in the manufacturing, healthcare, transportation, retail, and energy sectors.

Artificial intelligence plays a crucial role in connected devices like IoT, enabling intelligent automation and real-time decision-making. By integrating AI into IoT systems, businesses can glean useful insights from massive volumes of sensor generated data. Predictive maintenance is made possible through AI, enabling autonomous control and enhancing the operational efficiency of IoT. Advanced features like pattern recognition, anomaly detection, facial/object recognition, and natural language interaction are made possible by AI, which allows IoT devices to go beyond simple data collection. With little assistance from humans, this change turns static networks into self-learning, adaptive ecosystems that continuously maximize performance.

Impact on the Artificial Intelligence (AI) Market

The global artificial intelligence (AI) market size was USD 757.58 billion in 2025, calculated at USD 900.00 billion in 2026, and is expected to reach around USD 4,216.29 billion by 2035, expanding at a CAGR of 18.73% from 2026 to 2035.

According to Precedence Research, the rapid penetration of digital technologies and the internet has significantly contributed to the growth of the global artificial intelligence market in the past few years. The heavy investments by the tech giants in research and development are continuously fueling technological advancements in various industries.

End-use industries have started integrating artificial intelligence into their business processes to streamline their operations. The artificial intelligence technology is gaining momentum as it assists end-user organizations to become more efficient and result-oriented. The growing adoption of artificial intelligence is encouraging new entrants to venture into the AI marketplace by offering niche application-specific products and solutions. Furthermore, companies are also taking several strategic initiatives in industry consolidations to gain competitive advantages.

Expert Opinion

“This engagement marks a new chapter in Metsa’s long-standing collaboration with Infosys, as we simplify and transform our IT sourcing model to meet the efficiency demands of today’s business environment,” said Kristiina Lammila, Chief Information Officer of Metsä Group.

“Infosys brings deep manufacturing sector expertise and a proven AI-first approach, with Infosys Topaz Fabric driving intelligent, agentic operations at the heart of this engagement,” said Ruchir Budhwar, Executive Vice President and Industry Head, Europe, Manufacturing, Infosys.