TCS embraces GenAI as civilisational shift, expands AI focus

TCS plans to build a large pool of AI agents to work alongside humans in a collaborative human-AI model, supported by investments in AI-ready data centres, cloud infrastructure, and strategic technology partnerships

Tata Consultancy Services (TCS), the country’s largest IT services firm, is significantly expanding its generative AI initiatives, positioning the technology as a game-changing force that will redefine the future of business and industry.

In his address to shareholders in the company’s latest annual report, Tata Sons Chairman and TCS board head N Chandrasekaran described generative AI as a transformative leap rather than a routine technological development. “Generative AI, with its near-human reasoning capabilities, is a civilisational shift that will profoundly impact every sector,” he wrote.

TCS is accelerating its investments in AI, launching enterprise-grade platforms, building AI-trained talent, and strengthening infrastructure. One of its key developments is ‘TCS WisdomNext’, a proprietary generative AI platform designed to deliver intelligent, domain-specific solutions and streamline business processes.

Building a human-AI workforce

The company also plans to create a large pool of AI agents that will work alongside humans, forming a collaborative “human-AI” model. This approach, according to Chandrasekaran, will shape how services are delivered in the future. TCS is investing in AI-ready data centres, scalable cloud infrastructure, and strategic partnerships with hardware providers, solution developers, and startups to support its long-term vision.

TCS, which employs over 6.07 lakh people as of March 2025, is on track to develop the largest AI-trained workforce globally. The firm has embedded AI across its service offerings, building intelligent agent-based solutions throughout the value chain.

Chief Executive Officer and Managing Director K Krithivasan noted a growing shift among clients from isolated AI use cases to broader, ROI-focused AI adoption. “Clients are now moving toward AI at scale, and we’re helping them build centres of excellence, innovation labs, and deploy over 150 AI agents across their operations,” he said.

The company’s leadership changes, including the appointments of Aarthi Subramanian as President and COO and Mangesh Sathe as Chief Strategy Officer, reflect TCS’s commitment to its AI-driven direction.

AI in drug discovery

Among its AI applications, TCS highlighted a drug discovery use case where it generated over 1,300 potential molecules for a target compound. Of these, 12 were shortlisted and are now undergoing laboratory testing, underscoring AI’s potential in complex R&D domains.

Despite industry-wide concerns about automation impacting jobs, TCS executives remain optimistic. They believe that while roles may evolve, AI will augment rather than replace human talent.

In FY25, TCS reported revenue of ₹2.55 lakh crore, up 6% year-on-year, with an operating margin of 24.3%. The company secured deals worth $39.4 billion, including significant contracts from Primark and Xerox.

TCS shares ended the day at ₹3,498.90 on the BSE, down 1.11%, slightly underperforming the broader market.