TCS to match AI agents with human workforce in 3 years: N Chandrasekaran
Mumbai, June 9
Tata Consultancy Services expects a major transformation in the coming years, with artificial intelligence becoming deeply integrated into its workforce and operations, its Chairman N Chandrasekaran said on Tuesday.
Speaking at the 31st Annual General Meeting here, he said that over the next three years, the company could have as many AI agents as human employees, marking a major shift in how work is done at TCS.
He said the company is building what he called "the most consequential work" in its history, as AI reshapes the global technology services industry.
"Some say AI poses a fundamental threat to that model. I see it differently: far from being a mortal threat, AI is the most significant opportunity yet for enterprise IT," he said.
According to him, nearly three-fourths of enterprises worldwide expect their technology spending to rise in the next two years, driven largely by AI adoption.
"Globally, three-quarters of enterprises expect technology spend to increase over the next two years, largely thanks to AI," he added.
Chandrasekaran also pointed to strong momentum in TCS's AI business. He said that in the last quarter of FY26, the company recorded an annualised AI revenue of $2.4 billion, which is growing at a compound quarterly growth rate of 22.4 per cent.
He noted that despite investor concerns and recent pressure on the broader IT sector, the company's fundamentals remain strong, with stable margins, rising revenues and a strong deal pipeline.
"Today, AI primarily exists in the world of software and computers, but soon it will make inroads into the physical world: stores, factories, warehouses, energy networks, vehicles and supply chains. This will require experts who understand how to link IT, AI and physical equipment and infrastructure," he explained.
Addressing concerns about AI replacing jobs in the IT services industry, he acknowledged that a key question has emerged: if AI can perform much of the work, what happens to a sector built around delivering those services?
However, he argued that the fear is based on a misunderstanding of how AI will interact with enterprise systems.
— IANS
Reader Comments
As someone working in IT, I'm cautiously optimistic. The $2.4 billion AI revenue figure is impressive, but I worry about the impact on junior developers and freshers. Companies like TCS should invest more in AI training programs for their existing staff. Otherwise, this could lead to massive layoffs in the name of efficiency.
Finally, an Indian tech leader speaking sense about AI! For too long, people have been panicking about job losses. Chandrasekaran correctly identifies that AI will create new opportunities in linking IT with physical infrastructure - factories, supply chains, etc. This is where India can lead globally. Excellent vision! 👏
Interesting perspective from an Indian IT giant. The compound quarterly growth rate of 22.4% in AI revenue is impressive by any standard. But I wonder how this will affect TCS's clients in the US and Europe who rely on their services for cost arbitrage. Will AI reduce the need for offshore teams?
I appreciate the optimism, but we need to be realistic. The IT services model has been India's backbone for decades. If TCS replaces half its workforce with AI agents in just 3 years, that's a huge disruption. Chandrasekaran should focus on how this will help Indian graduates get better jobs, not just please shareholders.
As an investor, this sounds promising. TCS is positioning itself well for the AI revolution. However, I'm curious about the practical implications - how will they measure AI agent performance? And what about data security when AI systems access sensitive client information? These are questions that need clear answers.