AI is becoming operating foundation, infrastructure of intelligence: TCS chairman
What's the story
Tata Consultancy Services (TCS) chairman N Chandrasekaran has said that generative and agentic artificial intelligence (AI) are entering a new phase of growth. He emphasized that AI is no longer just a layer but the operating foundation. "AI is now becoming the infrastructure of intelligence," he wrote in his letter to shareholders in TCS's Annual Report FY26. Chandrasekaran's remarks come as TCS transitions into a full-stack AI provider.
Business transformation
AI transforming core business functions
Chandrasekaran highlighted the transformative potential of AI in business operations. He said it will shape how companies invest, organize supply chains, manage risk, and serve stakeholders. "Customers will move from pilots to scale, embedding AI into core functions," he added. This shift is already evident in TCS's financials for FY26, where it reported $2.3 billion in annualized revenue from AI services and $11.5 billion from new-age services such as Cloud, Data, Enterprise Solutions, and Cyber Security.
Strategic moves
Shift toward becoming full-stack AI provider
Chandrasekaran also spoke about TCS's strategic shift toward becoming an AI and digital transformation partner. He said, "In fiscal 2026, TCS scaled up execution of the 'Human+AI' operating model and industry-specific agent marketplace." The company has also entered the data center business and acquired several companies to bolster its AI capabilities. One of these is HyperVault, an AI infrastructure platform launched in partnership with TPG.
Future endeavors
TCS building India's 1st AI-focused data center
TCS is also building India's first AI-focused data center with a rack density of over 160KW. Chandrasekaran noted that as global constraints on power, compute, and geography intensify, India is emerging as a strategic destination for AI infrastructure. He said HyperVault positions TCS at the center of this shift. TCS CEO K Krithivasan echoed these sentiments in his vision for FY27, calling it pivotal to the company's goal of becoming the world's largest AI-led technology services provider.