AI Gold Rush: TCS Eyes $1.5B, Aims for No.1 Spot

Tata Consultancy Services (TCS) has announced a bold plan to become the world's leading AI-driven technology services company. CEO K Krithivasan revealed the company's AI-related revenue has reached an annualized $1.5 billion.

The Mumbai-based IT giant disclosed its AI revenue for the first time during its Analyst Day 2025, joining a select group of Indian firms in providing such transparency. Krithivasan highlighted that 54 of their top 60 clients are already leveraging TCS for AI solutions, with 85% of all clients exceeding $20 million in revenue utilizing TCS's AI capabilities. He further noted a 16.3% quarter-over-quarter growth in AI revenue, fueled by successful customer engagements.

TCS has undertaken over 5,500 AI projects and successfully deployed 209 platforms. Krithivasan emphasized that the shift towards Generative AI is not just another tech upgrade, but a fundamental change due to its unprecedented speed and extensive impact, unlike previous transitions from mainframes to the web.

TCS's strategic roadmap is based on five key pillars:

• Internal transformation
• Redefining all services
• Building a future-ready talent pool
• Reimagining customer value chains
• Expanding ecosystem partnerships

Krithivasan expressed confidence in TCS's ambition to become the world's largest tech services company. He cited the company's extensive customer relationships, accumulated experience, and strategic investments as key factors positioning them for success.

TCS is fostering an 'AI First' culture, prioritizing AI solutions in every project, even if it means potentially impacting their existing revenue streams. AI is given the 'first right of refusal' to ensure optimal value delivery.

The company is adopting a full-stack approach, covering the entire AI value chain from chip design and infrastructure to model building and AI agents. This comprehensive capability, combined with strong financial performance and disciplined execution, is expected to drive TCS's leadership in the AI revolution.

Krithivasan also addressed the evolving workforce, noting that AI integration will significantly reshape roles within organizations. The traditional IT team structure is evolving, with a shift from solely focusing on the number of programmers to incorporating new roles like AI coaches and trainers.

TCS is reassessing its human capital strategy, including training programs, team structures, and project delivery methods, to prepare for an AI-driven future. To that end, 100% of customer-facing teams have received AI training, and over 180,000 employees have been upskilled in advanced AI competencies.

The company made significant strides in AI in 2025. In October, TCS invested an initial Rs 7.5 crore to establish HyperVault AI Data Centre Ltd, a wholly-owned subsidiary focused on building AI and sovereign data centers. Furthermore, in November, TCS partnered with TPG, a private equity firm, for its upcoming data center business, with both entities planning to invest approximately Rs 18,000 crore. This deal followed TCS's announcement of entering the data center sector with a plan to reach a 1 GW capacity, requiring an investment of $6.5 billion (around Rs 57,600 crore).