Tata Consultancy Services has asked employees to use AI proactively, even if it reduces short-term billing.
CEO K Krithivasan said AI is an opportunity, not a threat, and staff should automate work if it delivers faster, cheaper results.
The move comes amid AI-driven panic in software stocks, with investors fearing disruption to traditional IT services models.
At a time when global IT stocks are under pressure amid fears of an AI-driven "Saaspocalypse", Tata Consultancy Services (TCS) is taking a bold stand. The IT services giant has announced wants its employees to use AI proactively, even if it hurts short-term revenue.
Speaking at the Nasscom Technology Leadership Forum in Mumbai, TCS CEO K Krithivasan told that their employees should deploy AI in client projects, even if it means "cannibalising revenue streams."
3 February 2026
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"We are not afraid this technology will take away our livelihood," he said, adding that the firm encourages its staff to tell clients that AI can deliver work faster, better and cheaper, even if that reduces billing.
AI Push Amid Saaspocalypse Fears
The statement comes as global and Indian IT stocks have been facing sharp selling over the past few weeks. We had earlier reported that the fall intensified after Anthropic launched new plugins for its Claude tool, raising concerns that AI could automate large parts of software development and IT services work.
According to Bloomberg, Jefferies trader Jeffrey Favuzza dubbed the sell-off the "Saaspocalypse," describing it as an apocalypse-like moment for software-as-a-service companies, with investors worried about disruption, pricing pressure and future growth.
Instead of resisting the change, TCS is choosing to lean into it.
Krithivasan further said that AI adoption must happen across the organisation. All employees are being given access to AI tools to experiment and build familiarity.
Importantly, the company is also pushing senior leaders to get hands-on. "The most important point is how do you train the senior management. What we find is our associates at junior level are more comfortable and proficient in technology. As people go to senior level, they hear a lot of technology but they do not dirty their hands. We are insisting that every senior folk has to build something," he added.
TCS sees AI integration as essential for improving productivity, boosting innovation and staying competitive globally. The company recently deepened its AI focus through a partnership with OpenAI, which will become the first customer of TCS’s new data centre business. The collaboration will begin with 100 megawatts of capacity and could scale up to 1 gigawatt under OpenAI’s Stargate initiative.
