Tata Consultancy Services (TCS) Chairman N Chandrasekaran shared at the 31st Annual General Meeting in Mumbai that the company anticipates a significant transformation ahead, with artificial intelligence (AI) becoming deeply embedded in its workforce and operations. Over the next three years, TCS could have as many AI agents as human employees, signaling a notable shift in its operational landscape. Chandrasekaran highlighted that TCS is embarking on what he termed as “the most consequential work” in its history, as AI reshapes the global technology services sector.
He emphasized that AI, rather than posing a threat, presents a substantial opportunity for enterprise IT. Chandrasekaran pointed out that a large majority of enterprises globally are expecting a surge in technology spending in the next couple of years, largely driven by AI adoption. TCS’s AI business is also showing robust momentum, with the company reporting an annualized AI revenue of $2.4 billion in the last quarter of FY26, growing at a compound quarterly growth rate of 22.4 percent.
Despite concerns among investors and recent industry pressures, TCS maintains strong fundamentals, including stable margins, increasing revenues, and a solid deal pipeline. Chandrasekaran underscored that while AI currently resides in the realm of software and computers, it is poised to expand into the physical domain encompassing stores, factories, energy networks, and supply chains. This evolution will necessitate experts who can bridge IT, AI, and physical infrastructure effectively.
Addressing worries about AI displacing jobs in the IT services field, Chandrasekaran acknowledged the emerging question of the sector’s future in light of AI’s capabilities. However, he contended that the apprehension stems from a misconception about how AI will interact with enterprise systems.
