Tata Consultancy Services (TCS) will have as many AI agents and workers as its human workforce within the next three years, Tata Sons Chairman N Chandrasekaran said on Monday while addressing the 31st Annual General Meeting.
While speaking on Artificial Intelligence (AI) Chandrasekaran said, “I predict that over the next three years, TCS will have as many AI agents as human employees.”
Underscoring the company’s growing focus on artificial intelligence as a key driver of future growth he said that “artificial intelligence is the most significant opportunity for TCS and IT sector.”
He noted that TCS AI revenue has risen significantly over the past four quarters registering a compound quarterly growth rate of more than 22%. In Q4FY26, TCS’ annualised AI revenue reached $ 2.5 billion.
Chandrasekaran also said that the global enterprise IT industry is expected to double to nearly $3 trillion over the next three years, from approximately $1.6 trillion currently.
TCS outlines five major AI-driven growth avenues for businesses
Chandrasekaran noted, TCS is already investing extensively in AI agents across internal operations, solution frameworks and external operations as part of its broader strategy to capitalise on the rapid evolution of enterprise AI.
He outlined five major growth opportunities emerging in the AI era. The first is the modernisation of legacy systems, including outdated technology infrastructure and fragmented data environments.
The second involves redesigning end-to-end business processes using AI, covering areas such as supply chains and customer journeys.
The third opportunity, he said, lies in governing and managing AI agents to ensure compliance, security and cost efficiency.
The fourth is the rise of “sovereign AI”, where governments and highly regulated institutions seek greater control over AI infrastructure and data. Chandrasekaran said TCS has already launched sovereign AI initiatives in India and Europe.
The fifth area is “physical AI”, which extends AI capabilities into factories, warehouses and vehicles. As an example, he cited a deployment for a global agribusiness company that uses a four-legged robot to monitor hazardous conditions in warehouses.
Strong business momentum despite AI disruption concerns: Chandrasekaran
Despite concerns about AI-led disruption, which has caused a sharp correction in the Nifty IT index, Chandrasekaran maintained that TCS continues to see strong business momentum. “Margins have held, revenues are up, and the deal pipeline is stronger than ever,” he said.
He added that as the cost of intelligence declines, more business processes will increasingly shift to AI-enabled systems. According to him, nearly three-quarters of enterprises worldwide expect technology spending to rise over the next two years, largely driven by AI investments.
