TCS Sees Generative AI as a ‘Civilizational Shift’, Reaches $30 Billion Revenue!

Tata Consultancy Services (TCS) is embracing the transformative power of Generative AI (GenAI), viewing it as more than just a technological advancement but a fundamental shift in civilization.

In the company’s annual report for FY24-25, Chairman N Chandrasekaran stated that GenAI, with its near-human reasoning capabilities, is driving parallel progress in fields like semiconductors, cloud computing, quantum technologies, robotics, and energy innovation. He believes its widespread adoption is accelerating, fueled by these advancements.

GenAI’s Impact Across Industries

Chandrasekaran highlighted that GenAI is already revolutionizing sectors such as analytics, customer experience, and marketing. He envisions a future where autonomous robots and AI agents become commonplace, transforming industries like manufacturing and enterprise operations.

TCS’s AI-Driven Approach

TCS has been strategically integrating AI into its offerings and building intelligent agent solutions throughout its value chain. The company boasts the largest AI-trained workforce in the industry and launched its enterprise-grade GenAI platform, TCS WisdomNextTM, in 2025.

Looking Ahead: TCS’s Four-Pronged Strategy

Chandrasekaran outlined four key areas of focus for TCS in the future:

• Establishing a large pool of AI agents to work alongside human employees.
• Delivering solutions through a human+AI model.
• Investing in AI data centers and cloud infrastructure.
• Building strategic partnerships with hardware providers, solution innovators, and startups.

He believes this integrated approach will empower TCS to provide cutting-edge capabilities to its clients, ensuring they remain competitive and adaptable in a rapidly evolving technological landscape.

Financial Success and Future Growth

In FY25, TCS achieved a significant milestone, crossing the $30 billion revenue mark and reaching a brand value of $20 billion. CEO and MD K Krithivasan attributed this success to early investments in strengthening client relationships, building intellectual property, developing employee capabilities, and expanding the technology ecosystem.

He also emphasized the growing demand for AI-driven solutions, noting that clients are prioritizing initiatives around technology modernization, cost optimization, vendor consolidation, operating model transformation, risk management, and compliance.

Strong Financial Performance

The company’s Total Contract Value (TCV) reached $39.4 billion in FY25, reflecting a balanced mix of large, medium, and small deals. TCS declared a shareholder payout of Rs. 45,588 crore, with a payout ratio of 94%, demonstrating its commitment to rewarding its investors.