TCS will have as many AI agents as human employees: N Chandraskaran

N Chandrasekaran, chairman, Tata Consultancy Services (TCS), believes that over the next three years the company will have as many artificial intelligence (AI) agents as human employees. Addressing the 31st Annual General Meeting (AGM), he said the company is building the most consequential work in its history.

“Globally, three-quarters of enterprises expect technology spend to increase over the next two years, largely thanks to AI. Our market is widening as organisations once unserved by IT services require our expertise for the first time,” he said in his address to shareholders.

He also said that in the last quarter of FY26, TCS had annualised AI revenue of $2.4 billion, which is growing at a compound quarterly growth rate (CQGR) of 22.4 per cent.

Chandrasekaran also acknowledged the impact of AI and investor concerns as the firm, along with the broader sector, has seen a sustained decline.

“A serious question has crystallised: If AI can do this work, what happens to an industry built around doing it?”

He highlighted that the disparity stems from misconceptions surrounding the relationship between AI and IT services.

“AI tools reduce the need for human input in the building and maintenance of software. However, AI does more than reduce effort. It is not merely a technology. It is infrastructure — an infrastructure of intelligence... Our market is widening as organisations once unserved by IT services require our expertise for the first time,” he added.

This was evident, he said, as the business fundamentals have remained strong.

“...margins have held. Revenues are up. The deal pipeline is stronger than ever.”

He also said that he has seen the industry navigate every major technology wave over several decades.

“I have not seen one with this much to build.”

According to Chandrasekaran, TCS sees five major opportunities emerging from AI.

The first is updating the primary technological functions that large businesses rely on. The second is reimagining how businesses operate. The third is managing and overseeing AI within organisations. The fourth is sovereign AI, and the fifth is physical AI.

“Across all five areas, TCS is already building, delivering and proving.”

What gives him confidence that both the industry and TCS will lead this transition is the strength of the company's customer relationships and the trust it has built over time.

“In enterprise AI, the scarcest resource will not be the model. It will be context and trust.”