India's largest IT services company, TCS, views generative artificial intelligence (AI) as more than just another technological cycle; instead, it sees it as a "civilisational shift" that will yield positive benefits across various industries. N Chandrasekaran, the chairman of Tata Sons and TCS, indicated in his message to shareholders, as stated in the annual report, that the USD 30 billion IT services company intends to develop a "large pool" of AI agents to collaborate with human workers, supporting a "human+AI" model moving forward. Chandrasekaran emphasised that achieving near-human reasoning capabilities signifies that generative AI represents a significant transformation.
He noted that TCS has been proactive in integrating AI technologies into its offerings and has created intelligent agent solutions that span the entire value chain. Additionally, he mentioned that by March 2025, the company, which employs over 6.07 lakh people, is expected to have the largest AI-trained workforce in the industry and has recently launched an enterprise-grade generative AI platform called 'TCS Wisdomnext.'
Looking ahead, he outlined four main areas of progression for TCS: the establishment of a substantial pool of AI agents to work alongside human employees, the delivery of solutions using a human+AI model, investment in AI data centers and cloud infrastructure, and the development of partnerships with hardware providers, solution innovators, and startups.
The Chief Executive and Managing Director, K Krithivasan, pointed out that clients are increasingly moving away from a use case-based approach to one focused on return on investment in AI. He noted that TCS is assisting clients in establishing AI centers of excellence and labs, as well as providing domain-specific AI solutions for business operations with over 150 AI agents.
Krithivasan also informed shareholders about recent leadership appointments, including Aarthi Subramanian as the President and Chief Operating Officer and Mangesh Sathe as the Chief Strategy Officer, which were made in response to industry shifts driven by AI. He cited specific instances where TCS has supported clients in the generative AI domain, such as the development of a drug discovery solution that resulted in the creation of over 1,300 molecules, with 12 of these undergoing in vitro testing.
Despite recent years witnessing a slowdown in workforce additions or even a decline in staffing levels among IT companies—attributed to automation and increased workforce growth during the COVID-19 pandemic—TCS executives asserted that while AI would change job dynamics, it would not lead to job losses. Chandrasekaran also remarked on how ongoing geopolitical shifts and the emergence of a multipolar world are influencing businesses, contributing to challenges such as decreasing production volumes, rising costs, and suboptimal asset utilization, which in turn affect profitability and cash flow.
Krithivasan informed investors that TCS secured new deals worth USD 39.4 billion in FY25, which included contracts with European retailer Primark and Xerox. Additionally, he reported a 6 percent year-on-year revenue growth to Rs 2.55 lakh crore, with operating margins at 24.3 percent. On the BSE, TCS's stock closed down 1.11 percent at Rs 3,498.90, compared to a 0.76 percent decline in the benchmark index.
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Inputs from PTI
