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TCS CEO Urges AI Adoption Despite Revenue Impact, Sees Job Growth

TCS CEO K Krithivasan has directed employees to actively implement AI tools to deliver work faster and cheaper, even if it leads to short-term revenue cannibalization. He emphasized embracing AI-driven efficiencies, arguing the technology will create more opportunities and benefit early adopters. This stance comes amid investor fears that AI could disrupt India's labor-intensive IT services model, causing a sharp decline in IT stock values. Wipro's leadership similarly views AI as a historic, multi-dimensional evolution that will increase demand for services and generate net job growth.

Key Points: TCS CEO Backs AI Use Even If It Cuts Short-Term Revenue

  • TCS urges AI adoption for speed and cost savings
  • CEO accepts potential short-term revenue impact
  • AI seen creating more jobs than it eliminates
  • IT stocks fall on industry disruption fears
  • Wipro executive echoes positive AI outlook
2 min read

TCS urges employees to use AI even if it cuts revenue: CEO Krithivasan

TCS CEO K Krithivasan encourages employees to use AI for efficiency, accepting potential revenue impact, while predicting AI will create more jobs.

"Instead, the technology is expected to open up more opportunities, and those who embrace it will benefit the most. - K Krithivasan"

New Delhi, Feb 25

Tata Consultancy Services on Wednesday asked its employees to actively use artificial intelligence tools to deliver work faster and at lower cost, even if it impacts the company's short-term revenue.

Speaking at the Nasscom Technology and Leadership Forum in Mumbai, TCS CEO K Krithivasan said the company is encouraging associates to inform clients if tasks can be done quicker and cheaper using AI, even if that leads to revenue cannibalisation.

He said employees should adopt AI-driven efficiencies rather than resist change. According to him, the company is not worried that AI will take away jobs.

"Instead, the technology is expected to open up more opportunities, and those who embrace it will benefit the most," he said.

The comments come at a time when investors are concerned that artificial intelligence could disrupt the traditional labour-heavy model of India's IT services industry. These fears have led to a sharp fall in IT stocks.

The Nifty IT index has declined 21 per cent so far this month, putting it on track for its worst monthly performance in nearly 23 years.

The sector has seen about $68.6 billion in market value wiped out in February amid AI-related worries.

TCS's position is similar to that of rival Wipro. Wipro's Chief Strategist and Technology Officer, Hari Shetty, recently said he expects rapid AI adoption to increase demand for software services rather than reduce it.

He added that AI is likely to create more jobs than it eliminates.

In an exclusive interaction with IANS, Shetty described AI as one of the biggest technological shifts of our time.

He compared the current AI wave to historic breakthroughs such as the invention of electricity, the steam engine and, more recently, the internet revolution.

"AI is one of the biggest technology opportunities that we have got. This is one of the major technology evolutions and a multi-dimensional opportunity," Shetty told IANS.

"AI represents a major and multi-dimensional technology evolution that will reshape industries and economies worldwide," he added.

- IANS

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Reader Comments

R
Rohit P
As a software engineer in Bangalore, I see both sides. AI tools are amazing for productivity, but the CEO saying "not worried about jobs" feels a bit disconnected from ground reality. Many of my colleagues are anxious about being replaced.
A
Aman W
The comparison to electricity and the internet is apt. We adapted then, we will adapt now. The key is upskilling. TCS and other companies need to invest heavily in training their workforce, not just telling them to use AI.
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Sarah B
Interesting perspective from India's IT giant. The market's reaction (21% drop!) shows how scared investors are. But if TCS and Wipro are betting on AI creating more demand, maybe there's hope for the sector after all.
V
Vikram M
Finally, some honesty about "revenue cannibalisation." Most companies hide this. Respect to Krithivasan for being transparent. This is the Tata way – ethics and long-term vision over short-term profits. Jai Ho!
K
Karthik V
The $68 billion loss in market value is staggering. While the CEOs are talking about opportunities, the stock market is telling a different story. I hope they have a solid plan to manage this transition for their lakhs of employees.

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