Tata Consultancy Services (TCS) expects artificial intelligence agents to become as numerous as its human workforce within the next three years, Tata Sons Chairman N Chandrasekaran said on Monday, underscoring the company’s growing focus on AI as a key driver of future growth.

Addressing shareholders at TCS’ 31st Annual General Meeting, Chandrasekaran said the company is making significant investments in AI agents across internal functions, client solutions and external operations as part of its broader enterprise AI strategy.

“The day is not very far when TCS will have equal number of AI agents or AI workers as their physical workers,” he said, describing artificial intelligence as a transformative force for the technology services industry.

AI To Become Central To TCS Operations

Chandrasekaran predicted that within three years the number of AI agents deployed by the company would match the size of its human workforce.

He said TCS is already integrating AI agents into solution frameworks and operational processes, viewing the technology not as a threat to the business but as a major opportunity.

“Far from being a mortal threat, AI is the most significant opportunity yet for enterprise IT,” he told shareholders.

The Tata Group chairman also sought to allay concerns over the impact of AI on employment, saying the company has no plans for large-scale workforce reductions. However, he indicated that hiring would proceed at a slower pace as AI adoption accelerates.

His remarks come against the backdrop of workforce reductions over the past year. TCS had announced the elimination of more than 12,000 jobs in July last year, while reports suggested that the company’s headcount had declined by over 20,000 since then. The company later clarified that the reduction reflected both voluntary and involuntary attrition.

AI Revenue Growth Gains Momentum

Chandrasekaran said TCS has witnessed strong growth in its AI business, with revenues expanding at a compound quarterly growth rate of more than 22 per cent over the last four quarters.

According to him, the company’s annualised AI revenue reached USD 2.5 billion during the final quarter of fiscal year 2026.

Despite concerns that artificial intelligence could disrupt traditional IT services, Chandrasekaran said business momentum remains robust.

“Margins have held, revenues are up, and the deal pipeline is stronger than ever,” he said.

He added that as the cost of intelligence declines, more enterprises are expected to embrace AI-enabled systems. Nearly three-quarters of companies worldwide are projected to increase technology spending over the next two years, largely driven by investments in artificial intelligence.

Five Key Growth Opportunities Identified

Chandrasekaran outlined five major opportunities that he believes will shape TCS’ AI-driven growth strategy.

The first is the modernisation of legacy systems and fragmented technology environments. The second involves redesigning end-to-end business processes, including supply chains and customer interactions, using AI.

The third opportunity lies in the governance and management of AI agents, ensuring compliance, cybersecurity and cost efficiency.

The fourth area is sovereign AI, where governments and highly regulated institutions seek greater control over AI infrastructure and data. Chandrasekaran said TCS has already launched sovereign AI initiatives in India and Europe.

The fifth growth area is physical AI, which extends artificial intelligence capabilities beyond software into factories, warehouses and vehicles.

“In enterprise AI, the scarcest resource will not be the model. It will be context and trust,” Chandrasekaran said, adding that TCS’ long-standing client relationships and regulatory expertise would provide a competitive advantage.

His remarks reflect the growing importance of artificial intelligence in reshaping the global technology services industry, as companies increasingly seek to combine human expertise with AI-driven capabilities to enhance productivity and create new business opportunities.

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