As enterprises move from AI pilots to large-scale deployment, governance, commercial models and workforce transformation are emerging as key priorities alongside the technology itself. TCS President and Chief Operating Officer Aarthi Subramanian spoke to Urvi Malvania about how the company is navigating the transition. Excerpts:
Q. Some companies have rolled back AI deployments after implementation challenges. Have you seen similar issues, and how do you minimise such risks?
A. These are part of the learning curve every organisation will go through. AI governance has become one of the most important conversations with customers. As AI evolves, governance frameworks will also mature, with areas such as agentic control planes becoming increasingly important. Like earlier technology shifts, from digital to cloud, AI needs robust governance, and we are helping customers build that.
Q. How is TCS creating an AI-led work environment for employees? How do you manage the cost of AI adoption internally?
A. We are providing employees with Gemini Enterprise so they can build their own AI agents and automate repetitive tasks. We see this as an investment in building an AI-first culture. AI infrastructure is becoming part of the standard operating environment for employees. We have built one of the largest internal AI infrastructures, giving employees access to AI models, coding assistants and hyperscaler AI platforms.
Q. What milestones are you tracking as AI revenues scale up?
A. We define AI revenues narrowly as AI transformation projects where AI is central to the solution. On that basis, AI revenues have increased from $2.3 billion to $2.6 billion. But AI today is embedded across almost everything we do. AI-enabled delivery of traditional services is not classified as AI revenue. At the same time, demand remains strong for foundational work such as cloud migration, enterprise modernisation, data modernisation and cybersecurity. AI transformation projects continue to grow, while Business Process Services is being reshaped through agentic AI. Human-plus-AI operating models that transform business processes represent another significant growth opportunity.
Q. Which functions have benefited the most from AI agents, and where is human expertise still essential?
A. This is central to our strategy, which we call TCS to the power AI. It spans both IT and business functions. In IT, AI is improving productivity across applications, infrastructure and software development. In business functions, we are deploying AI across finance, HR and procurement. Recruitment is one example. AI helps screen candidates, reach out to applicants, schedule interviews and conduct the first round of interviews. The subsequent rounds are still conducted by employees to ensure quality. Over time, the number of human interview rounds may reduce as confidence in AI grows, but the final hiring decision will always remain with a person.
Q. How are commercial models evolving as AI becomes integral to service delivery?
A. These are new commercial constructs and are evolving as customers learn and adoption matures. We are in a transition phase, and multiple commercial models will coexist for some time.