TCS Chairman N Chandrasekaran told shareholders the IT giant is building AI agents at such scale that their number could eventually match its human workforce.
Outlining an AI‑first strategy, he said AI revenue has reached an annualised $2.5 billion with 22% CQGR.
Stressing AI will augment staff, slow new hiring, and fundamentally redesign business operations rather than replace jobs.
Tata Consultancy Services Chairman N Chandrasekaran, while addressing the annual general meeting on Tuesday, said the company can have an equal number of AI agents and human employees. "TCS will have equal number of AI agents or AI workers as they are physical workers," he said.
During the meeting, he outlined an AI-first vision for the firm, where artificial intelligence works alongside.
1 June 2026
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He also revealed that AI revenue has grown 22% in compound quarterly growth rate (CQGR), reaching $2.5 billion during the last quarter on an annualised basis, highlighting the growing contribution of AI to the company's business.
However, the chairman clarified that TCS is not planning to let go of its existing employees, but AI expansion will slow the hiring process.
"The company will not be hiring the kind of number it used to hire... Because certain proportions of work will go to AI agents," he said.
AI Is an Opportunity, Not a Threat
Chandrasekaran pushed back against concerns that AI poses an existential threat to the traditional IT services model, calling such fears misplaced.
"Far from being a mortal threat, AI is the most significant opportunity TCS yet and in fact for the whole IT industry," he said.
He argued that lower-cost intelligence enabled by AI would expand technology adoption across industries and drive greater demand for digital transformation projects.
As business processes, decisions and customer interactions become AI-enabled, enterprises are expected to step up technology spending, creating new opportunities for IT services firms rather than diminishing them.
"AI helps reimagine how businesses operate... from supply chains to customer journeys," he said, while pointing out TCS's work with a global bank where the company has developed an AI platform capable of managing the entire customer process.
He also flagged rising demand for sovereign AI infrastructure, noting TCS has launched offerings in India and Europe to help governments and the regulatory sector maintain control over data, compliance and security.
Chandrasekaran highlighted that in the future, AI will play a central role in the growth of TCS and the broader technological industry, based on how it is expanding the addressable market for IT services.
These remarks appear right after TCS has secured a major multi-year technology transformation and managed services contract from Canada Life, marking another significant win for the IT services major in the banking, financial services and insurance (BFSI) sector.
As part of the agreement, TCS will modernise and manage Canada Life's data centres, core infrastructure, end-user computing systems and software lifecycle management operations.
The company said it will use its AI and digital capabilities to improve operational resilience, increase automation and enhance user experience across the insurer's European operations.
