Mumbai: Tata Consultancy Services (TCS) is preparing for a future where artificial intelligence becomes as integral to its workforce as human employees. Speaking at the company’s 31st Annual General Meeting (AGM), TCS Chairman N Chandrasekaran said the company expects to have as many AI agents as human employees within the next three years.

The statement underscores the scale at which AI is expected to transform the technology services industry and reflects TCS’s growing focus on AI-driven business opportunities.

AI becoming a core part of TCS operations

Addressing shareholders, Chandrasekaran highlighted the rapid expansion of AI-related demand across industries. According to him, nearly three-quarters of global enterprises expect their technology spending to rise over the next two years, largely driven by investments in artificial intelligence.

He noted that AI is not merely another technological tool but is evolving into what he described as “infrastructure of intelligence,” fundamentally changing how organisations operate and consume technology services.

The TCS chairman said the company is currently engaged in some of the most significant work in its history as businesses increasingly seek assistance in adopting and managing AI systems.

AI revenue growth gains momentum

Chandrasekaran revealed that during the last quarter of FY26, Tata Consultancy Services achieved annualised AI-related revenue of approximately $2.4 billion.

He added that this revenue stream is growing at a compound quarterly growth rate (CQGR) of 22.4 per cent, highlighting the increasing contribution of AI-led projects to the company’s business.

The strong growth comes at a time when technology firms worldwide are investing heavily in generative AI, automation platforms and enterprise AI solutions.

Addressing concerns over AI and jobs

The rapid advancement of AI has raised concerns among investors and industry observers about the future of traditional IT services and software development roles.

Acknowledging these concerns, Chandrasekaran said a key question confronting the industry is whether AI could reduce the need for human involvement in software development and maintenance.

He agreed that AI tools can significantly reduce the effort required for coding, testing and maintaining software. However, he argued that the technology is simultaneously creating new markets and opportunities.

According to him, many organisations that previously did not require large-scale IT services are now seeking expertise to implement, manage and govern AI systems, thereby expanding the industry’s addressable market.

Five major opportunities emerging from AI

Chandrasekaran outlined five key areas where TCS sees substantial growth opportunities:

1. Modernising core technology functions

Businesses are increasingly looking to update legacy systems and integrate AI into their existing technology infrastructure.

2. Reimagining business operations

AI is enabling organisations to redesign workflows, automate processes and improve productivity across departments.

3. AI governance and management

As AI adoption grows, companies require systems to monitor, manage and govern AI applications responsibly and effectively.

4. Sovereign AI

Countries are investing in domestic AI ecosystems, data infrastructure and AI models tailored to national priorities and regulations.

5. Physical AI

The integration of AI into physical systems such as robotics, manufacturing, transportation and industrial automation represents another major growth area.

Chandrasekaran said TCS is already actively building and delivering solutions across all five segments.

A transformative technology wave

Having witnessed multiple technological shifts throughout his career, Chandrasekaran described the AI revolution as unprecedented in its scale and potential impact.

He remarked that while the industry has successfully navigated previous waves involving cloud computing, mobile technology and digital transformation, AI presents a far broader opportunity to create new products, services and business models.

The chairman emphasised that the current moment represents one of the most significant periods of innovation the technology sector has experienced.

Conclusion

TCS’s vision of deploying AI agents on a scale comparable to its human workforce signals how deeply artificial intelligence is expected to reshape the IT services industry. While AI may automate parts of traditional software development, the company believes the technology is simultaneously creating new business opportunities, expanding markets and opening entirely new areas of growth.