TCS Accelerates AI Push, Says 85% of Clients Now Use Its AI Services

India’s largest IT services company, Tata Consultancy Services (TCS), is making a bold push to position itself as the world’s biggest AI-driven technology services firm, with CEO K Krithivasan revealing for the first time that the company’s artificial intelligence business has reached $1.5 billion in annualised revenue.

Speaking at TCS Analyst Day 2025, Krithivasan said the disclosure marks a significant milestone, placing TCS among a small group of Indian companies that publicly report AI-specific earnings. He highlighted the rapid momentum of AI adoption across the company’s client base, noting that 54 of TCS’s top 60 customers now rely on the firm for AI initiatives, while 85% of its global clients—representing over 20 million users—are engaging TCS for AI-related work.

The scale of execution is equally striking. TCS has already delivered more than 5,500 AI-led projects and completed 209 platform deployments, with AI services alone recording a 16.3% quarter-on-quarter growth, underscoring strong and sustained demand.

Krithivasan drew a clear distinction between generative AI and earlier technology transitions, such as the shift from mainframes to web-based systems. Unlike past upgrades, he said, generative AI is reshaping businesses at an unprecedented speed and scale, making it a structural transformation rather than a routine technology evolution.

To capitalise on this shift, TCS has built its AI strategy around five core pillars: internal transformation, reinvention of service offerings, development of a future-ready workforce, redesign of customer value chains, and deeper collaboration across ecosystems.

At the heart of this approach is what Krithivasan described as an “AI First” mindset, where TCS treats itself as the first customer. Every engagement begins with a critical question—can AI perform the task better?—even if the answer risks disrupting or reducing the company’s own traditional revenue streams.

Reinforcing the company’s long-term ambition, Krithivasan said TCS’s vision goes beyond leadership in AI alone. “With the customer insight we possess, the depth of our relationships, and the strategic investments we are making, we believe we are not just aiming—but are genuinely positioned—to become the world’s largest technology services company,” he said.

— By Aaradhay Sharma