4 days ago

TCS Bets Big on AI, Sees AI Agents Equalling Employee Count

Tata Consultancy Services (TCS) is rapidly scaling its artificial intelligence business, with AI-led revenues nearing an annualised run rate of $2.5 billion, while the number of AI agents deployed across the company could eventually equal its human workforce, Chairman N. Chandrasekaran said on Tuesday.

Speaking at the company’s annual general meeting, Chandrasekaran said TCS is witnessing strong momentum in AI adoption, with revenue from AI and generative AI engagements growing at a compound quarterly rate of around 22%. “The time is not far when we will have an equal number of AI agents working alongside our employees,” he said, describing AI as the next foundational layer of enterprise transformation.

According to Chandrasekaran, TCS is building large-scale AI agent ecosystems and sovereign AI infrastructure in India and Europe to help enterprises deploy and manage AI applications securely and at scale. He termed artificial intelligence the “infrastructure of intelligence” and one of the biggest opportunities the technology services industry has ever seen.

TCS, he said, is positioning itself as an AI-first transformation partner and expects AI to become embedded across virtually every business service it delivers over the coming years. While AI-driven automation is expected to reshape workforce requirements, Chandrasekaran said the company does not view the technology as a replacement for employees.

Instead, he envisaged a future in which human workers and AI agents collaborate to enhance productivity and accelerate innovation.

His comments come amid growing debate over the impact of artificial intelligence on employment in India’s IT services sector. TCS, the country’s largest software exporter, employs more than 580,000 people globally and has been among the industry’s most aggressive investors in AI capabilities.

The remarks underscore the scale at which leading IT firms are integrating AI into their business models, with TCS betting that AI-led services will become a major growth engine in the years ahead.

B D Narayankar