Tata Consultancy Services has reached $1.5 billion in annualised revenue from AI-related services, CEO K Krithivasan told analysts at the company’s Analyst Day 2025 event, calling the shift from digital to AI a “huge opportunity” and a “civilizational change” in how enterprises operate.
He said AI revenue is growing across every service line, with quarter-on-quarter growth of 16.3% in AI deals, as of the end of the September quarter.
Krithivasan said TCS is engaged with 54 of its top 60 customers on AI-related work and has executed more than 5,000 AI projects so far, with customer satisfaction at about 95%.
He added that 85% of clients with over $20 million in annual contract value are leveraging the company’s AI services.
“These give us the experience and the confidence to aspire to be in a league of our own,” he said, outlining a vision “to be the world’s largest AI tech services company.”
As of 9:30 am on December 18, TCS’ shares were up 0.73% on the NSE, trading at Rs 3,241 apiece.
Becoming an AI-first company
The CEO described AI as fundamentally different from prior technology cycles because of its speed, scale and business impact.
He said TCS is conducting a “massive internal transformation” to make the company “customer zero,” urging employees to adopt an “AI-first culture,” defined as asking “What can AI do here?” even if it cannibalises revenue.
He added that TCS is building a full-stack AI ecosystem, encompassing everything from infrastructure and chip design work to model integration, building small and large language models, creating platforms such as the cognitive automation platform Ignio and programming competition CodeVita, along with developing domain-specific AI agents.
Chief technology officer Aarti Subramanian detailed how TCS is operationalising the five-pillar strategy. She said the company’s internal programme—“TCS to the Power of AI”—aims to turn “every TCSer… in every role” into an AI practitioner and build an AI-first mindset across the organisation.
Subramanian said TCS now provides six lakh employees with access to AI infrastructure, including models, coding assistants, and hyperscaler AI tools.
To accelerate adoption, TCS ran an AI hackathon, involving more than 2.8 lakh employees and generating over five lakh submissions (3.3 lakh ideas and more than 1.7 lakh builds).
“It became the most inclusive hackathon,” she said, adding that an AI model evaluated all submissions in three weeks, work she said would have taken 90 people 12 months manually.
The CTO said TCS has also launched AI Fridays, in which teams across roles gather weekly in physical AI labs to ideate and build solutions in gamified four-to-six-hour sessions. She described this as a movement that is “blurring and bridging the gap between seniors and juniors and expert and novice.”
TCS is also making itself a showcase for AI, Subramanian said, noting that 97% of developers have access to coding assistants and that the firm is already seeing 20–30% productivity gains in some portfolios.
The company is applying AI to IT operations, application development, testing, service desks and business functions such as HR, finance, and procurement.
She highlighted an internal “n=1 learning coach” powered by generative and agentic AI that provides personalised upskilling for employees.
Subramanian said TCS has appointed an AI and Service Transformation Officer and created a five-level TCS Services Autonomy Framework, inspired by autonomous vehicle maturity levels, to embed autonomy into every service line. She gave examples of customer engagements where TCS moved clients from level two to level three autonomy, generating 25–30% productivity benefits, and cited an aerospace original equipment manufacturer where TCS proactively implemented coding assistants to deliver 20% savings.
On talent, she said 5.8 lakh employees are now AI-aware, and 1.8 lakh possess higher-order AI skills—double the number from the previous year.
The company is bringing in AI-native fresh graduates and expanding advisory and consulting hiring, with more than 50% of experienced hires joining with next-gen skills.
New roles such as rapid-build engineers and rapid-build leads are emerging, she added.
Subramanian said 2025 is seeing a shift from experimentation to scaled AI deployment as reasoning-capable generative and agentic models mature. Customers, she said, are pursuing two parallel priorities: getting ready for AI and leading with AI.
The CTO also highlighted TCS’ ecosystem expansion, including deep tech partnerships with Anthropic, OpenAI, Nvidia, and Mistral, and early work with Google on its agent-to-agent protocol.
“Partnerships are pivotal,” she said, citing Nvidia’s view of TCS as a “gold standard” for its manufacturing solution development.
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