Synopsis
Addressing the concerns that AI could reduce demand for traditional IT services, Chandrasekaran said the market has misunderstood the relationship between AI and technology services. "Far from being a mortal threat, AI is the most significant opportunity yet for TCS and, in fact, for the IT industry as a whole," he said.Listen to this article in summarized format
Addressing concerns that AI could reduce demand for traditional IT services, Chandrasekaran said the market has misunderstood the relationship between AI and technology services. "Far from being a mortal threat, AI is the most significant opportunity yet for TCS and, in fact, for the IT industry as a whole," he said.
Chandrasekaran explained that AI should be viewed as an "infrastructure of intelligence" that will expand rather than shrink technology spending. The global enterprise IT market, currently valued at about $1.6 trillion, is expected to double to $3 trillion over the next 5-10 years as companies modernize legacy systems, redesign business processes, build sovereign AI capabilities, and deploy AI in physical environments such as factories and supply chains, he said.
The chairman said that the company could eventually have as many AI agents as human employees. "The day is not very far when TCS will have an equal number of agents or AI workers as their physical workers," he said.
Chief executive K. Krithivasan said enterprises are moving from digital modernization to becoming AI-powered organizations and increasingly need trusted partners. "This moment represents a once-in-a-generation opportunity for system integrators," he said.
TCS’ AI revenue reached an annualized run rate of $2.5 billion in the March quarter. It has delivered more than 5,000 AI engagements and serves as the AI services partner for 130 of its top 139 clients.
Krithivasan reiterated TCS' aspiration to become the world's largest AI-led technology services company.
For FY26, TCS reported revenue of Rs 2.67 lakh crore, up 4.6% year on year, while net profit rose 8.8% to Rs 52,820 crore. Operating margins reached 25%, the highest level in four years, and the company returned nearly Rs 39,800 crore to shareholders through dividends and other payouts.
