$1.5 billion revenue from AI services: TCS CEO

Bengaluru: TCS CEO K Krithivasan has said annualised revenue from AI services reached $1.5 billion, growing 16.3% quarter-on-quarter. Over 85% of clients with revenues above $20 million leverage TCS for AI work.

"A massive internal transformation is underway, and we are encouraging all our associates to adopt an AI-first culture. Every time we take on a project or engage with a customer, the first question we ask is: What can AI do here? Can AI do this better than what we are doing today-even if it ends up cannibalising our own revenue?

"That is what we define as an AI-first culture-giving AI the first right of refusal before considering any other option. Alongside this, we are building our own AI solutions and scaling them," he said at the TCS analyst day in Mumbai on Wednesday.

Other large Indian IT companies have not yet highlighted AI revenue separately. In comparison, global peer Accenture moved faster to build next-generation capabilities. Accenture highlighted that its decision in FY23 to commit $3 billion over multiple years to lead in generative AI is paying off. In FY25, revenue from generative and agentic AI tripled to $2.7 billion from FY24, while bookings nearly doubled to $5.9 billion. It also grew its security revenue to $10 billion in the 2025 fiscal from a mere $700 million ten years ago. Other Indian IT companies have called out some AI-led deal wins, while the rest have shared commentary on budgets increasingly being redirected toward AI-led projects.

Krithivasan said AI is becoming a core growth engine across TCS' portfolio. AI services are growing at 38.2% year-on-year in constant currency, significantly faster than other segments such as interactive, cybersecurity, cloud, enterprise solutions, and IoT & digital engineering. Overall, TCS showcased $11 billion in annualised revenue across these services.

TCS said AI-led transformation is anchored in five strategic pillars: internal transformation, by becoming its own first customer and embedding an AI-first culture; AI-led service reimagination which involves redefining every service line with AI at core; talent transformation through large-scale reskilling, team restructuring and new delivery models; reimagining customer value chains with focus on driving end-to-end business transformation rather than incremental productivity gains; and ecosystem partnerships by partnering, acquiring, and co-creating with broader ecosystem to move at speed.

"The shift from digital to AI presents a massive opportunity-for enterprises and for TCS. Our differentiated strategy, deep customer partnerships, execution discipline, and strong balance sheet position us well to lead this transformation," he added. TCS COO Aarthi Subramanian said while TCS has long invested in strong learning infrastructure, it has now introduced a personalised AI learning coach. "Powered by generative and agentic AI, it understands an employee's skill level, aspirations, and goals, and provides tailored guidance across technical and soft skills. This is already delivering strong results."

Subramanian said 180,000 possess higher-order AI skills, nearly doubling from last year. "Role transformation is equally critical. Every role-from sales to delivery-is becoming AI-centric. We have launched the AI Dojo programme across sales, advisory, and delivery teams, while also introducing new roles such as rapid-build engineers." Subramanian, however, reiterated that in Level 2 and Level 3 tasks (mid order tasks), agents continue to play supportive roles, with humans remaining at the forefront.