Tata Consultancy Services (TCS) is developing numerous AI agents, and the company envisions a future where AI agents equal the number of human employees, Chairman N Chandrasekaran said at TCS’ Annual General Meeting on Tuesday.
Chandrasekaran highlighted the increasing contribution of AI to TCS’ business.
“TCS AI revenue has grown consistently over the last four quarters, with a CQGR of 22%. Last quarter, annualised AI revenues reached nearly $2.5 billion,” he noted.
On the broader technology services industry, Chandrasekaran described AI as a major growth opportunity rather than a threat, asserting that the traditional IT services model remains relevant due to its ability to deploy complex technologies in large enterprises.
He compared AI adoption to earlier technological shifts, emphasising that lower-cost intelligence will drive wider technology use across industries, increasing demand for digital transformation projects.
As business processes, decisions, and customer interactions become AI-enabled, enterprise technology spending is expected to rise, creating new opportunities for IT services providers.
Chandrasekaran clarified that AI is more than automation; it is reshaping business operations, from supply chains to customer engagement.
He cited TCS’ AI platform for a global bank that manages the entire customer process.
He also noted the growing importance of managing AI at scale. Enterprises will need support in training, governance, compliance, monitoring, and cost management for autonomous AI systems, presenting long-term opportunities for technology service providers.
Furthermore, Chandrasekaran pointed to rising demand for sovereign AI infrastructure, as governments and regulated sectors seek greater control over data, compliance, and security.
TCS has launched sovereign AI solutions in India and Europe, helping clients integrate AI into existing technology environments.
Looking ahead, AI is expected to expand TCS’ addressable market and drive the next phase of growth for both the company and the broader IT services industry.
