TCS shares plan to become 'world’s largest AI-led tech services company': What you need to know

The Mumbai-headquartered firm, TCS, for the first time has disclosed its AI revenue, placing it among the few Indian companies to do so.

Taking to the stage on TCS Analyst Day 2025, Krithivasan said, "Our AI-related services have garnered a total revenue of $1.5 billion annualised. About 54 of the top 60 clients use TCS for AI. 85% of all clients, greater than 20 million, leverage TCS for their AI work. Based on the success we've been able to get in the market from our customers, our QoQ growth on AI alone has gone up by 16.3%."

The CEO added that the company has executed over 5,500 AI projects and completed 209 platform deployments.

The CEO noted that while the company has successfully navigated previous shifts from mainframes to the web, the current move to generative AI represents a fundamental shift due to the unprecedented speed and scale of its impact, distinguishing it from mere technology upgrades of the past.

Five pillars

Detailing the company's strategic roadmap, Krithivasan listed five key pillars: achieving internal transformation, redefining all services, building a future-ready talent model, reimagining customer value chains, and expanding ecosystem partnerships.

“TCS is built on a vision…this vision is to be the world's largest tech services company… We believe, with the customer context we have, the deep customer relationships we have, the experience that we have built, and the investments, the strategic investments that we are going to put in…we are really poised, and in fact, we feel that we are destined to be there,” Krithivasan asserted.

Krithivasan highlighted a rigorous "AI First" culture where TCS acts as its own customer zero. The CEO stated that for every project, the company asks if AI can do the job better, even if it means "cannibalising" their own revenue. Krithivasan noted that they give AI the "first right of refusal" before pursuing other options to ensure they are delivering the best value.

Krithivasan also sketched out the company’s full-stack approach, where TCS operates across the entire value chain—from chip design and infrastructure to building models and AI agents. He argued that this end-to-end capability, combined with strong financials and execution discipline, positions the firm to lead the industry through this transition.

On the evolving workforce landscape, Krithivasan emphasised that the integration of AI will fundamentally alter organisational roles. He noted that even within IT services, the traditional composition of teams is shifting; the focus is moving from just counting programmers to defining new roles such as AI coaches and trainers.

“We are relooking at every piece of this talent puzzle,” Krithivasan said, sharing that TCS is re-evaluating every aspect of its human capital strategy, including training curriculum, team structures, and project delivery methods, to ensure they are fit for an AI-led future.

One hundred per cent of the company’s customer-facing teams have been trained in AI, while over 180,000 associates have been upskilled in higher-order AI competencies.

TCS in 2025: A slew of developments in AI space

In October, TCS incorporated HyperVault AI Data Centre Ltd as its wholly owned subsidiary with an initial investment of ₹7.5 crore to focus on building multiple artificial intelligence (AI) and sovereign data centres to provide infrastructure and technology-enabled services.

In November, the company announced a tie-up with private equity major TPG for its upcoming data centre business, in which both partners aim to pump in equity of around ₹18,000 crore.

The deal came within 40 days of the Tata Group company announcing its entry into the data centres business with a plan to have a 1 GW capacity, which would require investments of $6.5 billion (around ₹57,600 crore).

What analysts say

According to news reports, Morgan Stanley remains positive on the company and its stock. Other analysts are also optimistic.

An investment firm quoted in the media said TCS management has reiterated its aspiration to achieve a margin band of around 26–28%, up from the current level of about 25%, despite investing across a wide range of proven AI opportunities.

To strengthen its AI capabilities internally and make its existing workforce AI-ready, the company is investing nearly $1 billion in training infrastructure and reskilling initiatives. The investment firm added that the strategic move to address capability gaps through partnerships and acquisitions is essential to remain competitive. Through this service-led investment roadmap, TCS is building end-to-end offerings while complementing the infrastructure-led investments of $6–7 billion announced earlier.