Key Points:
- TCS AI revenue touched $1.5 billion annualized, growing 16% quarter-on-quarter, making AI a key growth driver for the company.
- AI usage is now mainstream at TCS, with 85% of clients and 54 of the top 60 customers already using its AI services.
- TCS is scaling aggressively through AI talent upskilling and large data center investments to support enterprise demand.
Tata Consultancy Services says its artificial intelligence business has reached $1.5 billion in annualized revenue, growing 16% quarter-on-quarter, marking a shift from experiments to a core business driver, its CEO said Wednesday.
AI Revenue Becomes Material Growth Engine
Tata Consultancy Services on Wednesday disclosed for the first time a hard revenue number for its artificial intelligence business, underscoring how rapidly AI has moved into the center of its operations.
Speaking at TCS Analyst Day 2025, Chief Executive K Krithivasan said AI-related services now generate $1.5 billion in annualized revenue, with growth of about 16.3% quarter-on-quarter. The company is India’s largest IT services firm by market value.
“Our AI-related services have garnered a total revenue of $1.5 billion annualized,” Krithivasan said. “Growth in TCS AI revenue alone has accelerated to more than 16% quarter-on-quarter.”
The disclosure places TCS among a small group of Indian technology companies willing to quantify AI revenues rather than describe them in broad terms. The company said 54 of its top 60 clients already use TCS for AI work, while about 85% of its overall client base leverages AI services in some form, further strengthening TCS AI revenue visibility.
Krithivasan said AI engagements have moved beyond pilots and proofs of concept to enterprise-scale deployments. TCS has executed more than 5,500 AI projects and completed 209 platform deployments, he said.
Generative AI Drives Strategic Shift
TCS has navigated earlier technology transitions, from mainframes to client-server systems and the rise of the internet. Krithivasan said generative AI represents a more significant inflection point because of the speed and breadth of change across industries.
“Unlike previous shifts, this is not just about new tools,” he said. “AI is reshaping how work itself is organized and delivered.”
To respond, TCS has organized its strategy around five priorities: transforming internal operations, redesigning services, building a future-ready talent model, reimagining customer value chains, and expanding its partner ecosystem.
Krithivasan said the company follows an “AI-first” approach internally, treating itself as a “customer zero” by asking whether AI can perform tasks better, even if that risks cannibalizing existing revenue.
He also outlined a full-stack ambition, with TCS operating across infrastructure, chip design, models, platforms, and AI agents. The breadth of offerings, combined with financial strength and execution discipline, positions the company to guide clients through AI-led change, he said.
Workforce and Infrastructure Adapt to AI Push
The shift toward AI is reshaping TCS’s workforce and investment plans as TCS AI revenue gains scale. Krithivasan said traditional team structures are changing as roles evolve from coding-focused jobs to new profiles such as AI coaches and trainers.
“We are relooking at every piece of this talent puzzle,” he said, pointing to changes in training curricula, team design and delivery methods.
TCS said all customer-facing teams have been trained in AI, while more than 180,000 employees have been upskilled in advanced AI competencies.
The company is also investing heavily in data center infrastructure. In October, it set up HyperVault AI Data Centre Ltd as a wholly owned subsidiary with an initial investment of 7.5 crore rupees to build AI and sovereign data centers.
In November, TCS announced a partnership with private equity firm TPG to invest about 18,000 crore rupees in a data center venture. The company has outlined plans to develop 1 gigawatt of capacity, requiring investments of about $6.5 billion.
By putting a concrete figure on TCS AI revenue, TCS is signaling that AI is no longer a future bet but a present-day growth driver. How quickly that momentum reshapes revenue mixes and operating models across India’s IT sector will be closely watched in the coming quarters.
