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TCS Embraces AI, Encourages Revenue Cannibalization to Drive Innovation: CEO K Krithivasan​

Mumbai, February 25

India’s largest IT services company, Tata Consultancy Services (TCS), has made it clear that it is not intimidated by artificial intelligence. Instead, the company is actively encouraging its employees to deploy AI tools, even if it leads to revenue cannibalization.

Speaking at the annual NTLF event in Mumbai, Managing Director and Chief Executive Officer K Krithivasan said TCS is pushing its workforce to leverage AI directly with clients, regardless of short term revenue implications.

TCS Not Afraid of AI Impact on Jobs​

Krithivasan emphasized that the company is not concerned about AI replacing jobs. Rather, TCS is focusing on equipping its more than six lakh employees with AI proficiency.

He stated that TCS is insisting that all employees become fluent in AI. The company believes the technology represents a fundamental transformation rather than a threat.

Describing AI as a civilizational shift, Krithivasan said it is democratizing knowledge and solving problems that had remained unresolved for decades.

AI Adoption Across Hierarchy​

According to Krithivasan, younger employees have demonstrated greater proficiency in building AI based solutions compared to senior level staff. While senior professionals tend to study the technology, they are slower in developing practical applications.

He stressed that using generational AI platforms such as ChatGPT is not limited to giving prompts. Employees must actively build solutions using AI tools to deliver real impact.

The company has directed its workforce to explore AI integration across projects, even if it means forgoing a portion of existing revenues.

AI Becomes a Board-Level Agenda​

Krithivasan noted that AI discussions have now reached boardrooms, with chief information officers being asked to actively identify and implement AI driven solutions.

While productivity gains are expected, TCS is also evaluating how AI can create tangible benefits for customers.

Addressing governance concerns, he said TCS is examining frameworks where AI systems can oversee other AI systems through the use of multiple agents.

Kotak Mahindra Bank on AI Strategy​

At the same event, Kotak Mahindra Bank Managing Director and Chief Executive Officer Ashok Vaswani said the bank aims to be a fast follower in AI adoption, preferring to leave core technological advancements to technologists while strategically implementing solutions.

As AI continues to reshape enterprise strategy, TCS appears determined to lead the transition by embedding artificial intelligence across its workforce and client engagements, even at the cost of short term revenue adjustments.
 

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The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.

Editorial Note

This news article was written and created by Karthik, and published on IST.
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