At TCS, AI agents could equal humans in 3 years
What's the story
Tata Sons Chairman N Chandrasekaran has said that Tata Consultancy Services (TCS) could have as many artificial intelligence (AI) agents as human employees in three years. He made the statement during his address at TCS's 31st Annual General Meeting on June 9. The prediction comes amid concerns from investors about how generative AI and automation could affect the labor-intensive business models of Indian IT services companies.
AI potential
AI an opportunity for enterprise IT: Chandrasekaran
Chandrasekaran emphasized that AI should not be seen as a threat but rather as an opportunity for enterprise IT. He said, "Far from being a mortal threat, AI is the most significant opportunity yet for enterprise IT." The Tata Sons chairman also clarified that market concerns stem from a misunderstanding of how AI will reshape enterprise technology spending.
Revenue growth
TCS's $2.4B annualized AI revenue run-rate
Chandrasekaran revealed that TCS had an annualized AI revenue run-rate of $2.4 billion in Q4 FY26, growing at a compound quarterly growth rate (CQGR) of 22.4%. He predicted that "over the next three years, TCS will have as many AI agents as human employees." The chairman also highlighted five major opportunities that he believes will drive growth in the AI era.
AI prospects
Five opportunities driving growth in the AI era
The first opportunity, according to Chandrasekaran, is modernizing legacy technology systems. He said these outdated infrastructure and fragmented data environments need to be overhauled before deploying AI at scale. The second opportunity lies in redesigning end-to-end business processes with AI, from supply chains to customer journeys. The third is the emerging market for governing and managing AI agents within organizations for compliance, security performance and cost control.
AI governance
Sovereign AI and Physical AI
Chandrasekaran also spoke about "sovereign AI," where governments and regulated institutions want more control over their AI infrastructure, cloud environments, and data. He said TCS has already launched sovereign AI infrastructure initiatives in India and Europe. The fifth opportunity is "physical AI," which extends artificial intelligence into factories, warehouses, energy networks, vehicles among other real-world environments.
AI application
Why traditional IT services firms have an edge in AI
Chandrasekaran cited a TCS deployment for a global agribusiness that uses a four-legged robot with cameras and sensors to monitor hazardous warehouse conditions. He stressed that established IT services firms have an edge in the AI era as enterprises need more than just access to AI models. "In enterprise AI, the scarcest resource will not be the model. It will be context and trust," he said, highlighting TCS's long-standing client relationships and regulatory expertise.