Tata Consultancy Services (TCS) CEO K Krithivasan said on December 17 that the company makes $1.5 billion a year from AI and has worked on more than 5,500 AI projects so far.
This is the first time TCS has reported its AI income. This shows that the IT giant is becoming more interested in AI as it plans to become the “world’s largest AI-led tech services company.”
What progress has TCS made with AI?
Krithivasan said at TCS Analyst Day 2025, “Our AI-related services have brought in a total of $1.5 billion a year.” TCS does AI work for about 54 of the top 60 companies. Almost 85% of customers with more than $20 million use TCS for their AI work. Our QoQ growth on AI alone has gone up by 16.3% thanks to the strong market results we’ve achieved for our clients.
“This is showing up in every service line; AI revenue is growing and growing a lot.” There is strong growth in both BFSI and Life Sciences…The new ways of thinking about services are actually speeding up growth in every service line. “Today, non-traditional services, also known as “new age” services, bring in almost $11 billion,” he said.
TCS’s bigger goals for AI
Krithivasan said that TCS is ready to become the “world’s largest AI-led tech services company” because it has strong ties with its customers, a lot of experience, plans to spend, and a good strategy.
Krithivasan said, “In fact, we feel like we were meant to be there.” TCS has been putting a lot of money into building AI infrastructure, buying companies with certain skills, and reorganising to make its business more in line with its AI plan.At TCS’s Q2 news call in October, the company’s leaders said they were going to spend about $6.5 billion over the next five to seven years to build a 1 GW data centre.
Since November, TCS has said that it will spend $2 billion (Rs 18,000 crores) in its AI data centre business with the help of the global alternative asset management company TPG. TCS bought two more Salesforce consulting firms in less than three months. ListEngage MidCo for $72.8 million and Coastal Cloud for $700 million in cash.
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TCS hires even more AI-native freshers
TCS said earlier that it would hire about 42,000 new employees in FY26. Now, the company will focus on hiring even more AI-native new employees or trainees. TCS is also changing the way it hires people by bringing in people from other companies who have skills that are ready for the future.
“This is an exciting time because all of these new college graduates know a lot about AI.” They know how to use AI in a way that really makes sense. “In fact, the number of new college students we hire has doubled since then,” said Aarthi Subramanian, Executive Director – President and Chief Operating Officer, TCS.
She also said, “AI is making new roles possible.” We have engineers and leads for fast build. We are now looking at new jobs that will be very important in the future. We want to hire people who are ready for the future and get the best people. In the past year, we’ve hired twice as many advisors and consultants across all of our big projects.
She said that TCS is making more hires in areas like cybersecurity, corporate solutions, cloud, advice and consulting skills, and so on. This brings them closer to their clients. “Today, more than half of the experienced people we hire have skills from the next generation,” she said.
In July, TCS said it would be letting go of 2% of its staff, or more than 12,000 workers in FY26, in order to be more flexible and ready for the future in a world where technology is changing quickly.
TCS has also stepped up its AI training program. Subramanian said, “In the last six to eight months, we’ve built what I think is one of the biggest AI infrastructures staff can use.” AI is easy for 600,000 people who work at TCS to reach. As well as access to all the models, code helpers, and other tools, this also includes access to all the hyperscaler AI tools that we use to build solutions for our users.TCS’s AI income has grown faster than the rest of the company’s revenue.
