TCS AI Revenue Hits $1.5 Billion, Grows 16% QoQ, Says CEO

As the largest IT services company in the nation intensifies its efforts to become an AI-led organisation, Tata Consultancy Services has revealed for the first time that its artificial intelligence division has crossed $1.5 billion in annualised revenue, gaining 16% quarter over quarter. Chief executive K Krithivasan stated during his remarks at TCS Analyst Day 2025 on 17 December that AI-related services have progressed beyond pilots and proofs of concept to become a significant source of income for the business.

According to the declaration, TCS is one of just a few Indian tech companies that are prepared to measure AI revenues rather than give a general description. According to Krithivasan, the company's AI-related services have generated $1.5 billion in revenue annually. He went on to say that the growth rate in AI alone has increased to 16.3% every quarter. According to him, over 85% of TCS's clientele uses AI services in one way or another, and 54 of its top 60 clients currently employ the company for AI work.

TCS Executed More than 5500 AI Projects

The rapid integration of AI into TCS's delivery strategy is demonstrated by the extent of adoption. According to Krithivasan, the company has completed 209 platform installations and more than 5,500 AI projects, demonstrating that AI is no longer viewed as an emerging capacity but is already being applied at the corporate level. Throughout its history, TCS has managed a number of technological changes, including the transition from mainframes to client-server computing and the emergence of the internet.

Given the speed and scope of change generative AI is bringing about across industries, Krithivasan contended that it marks a more significant turning point. He claimed that, in contrast to previous shifts, AI is changing not only the tools but also the way that work is planned and completed. In response, TCS has built a future-ready talent model, reimagined client value chains, expanded its partner ecosystem, redesigned services, and transformed its own operations into five objectives.

According to Krithivasan, the corporation adopts an internal "AI-first" strategy, viewing itself as a "customer zero" and enquiring as to whether AI can accomplish duties more effectively, even if doing so puts current revenue at risk. Additionally, he presented TCS's full-stack goal, which includes working on everything from chip design and infrastructure to models, platforms, and AI agents. He claimed that this breadth, along with the company's financial stability and operational rigour, puts it in a position to guide clients through the change.

TCS’ Transformational Shift to AI

TCS's staff is already changing as a result of the change. According to Krithivasan, traditional team structures are evolving as new roles like AI coaches and trainers replace those that are solely focused on coding. According to Krithivasan, TCS is re-examining every aspect of this talent problem. He mentioned that the organisation is reviewing team design, training curriculum, and delivery strategies.

According to TCS, all teams that interact with customers have received AI training, and over 180,000 staff members have received advanced AI competency training. These initiatives are part of a larger push for investment. With an initial investment of INR 7.5 crore, the business established HyperVault AI Data Centre Ltd as a wholly owned subsidiary in October with the goal of developing AI and sovereign data centres.

Following its goal to construct 1 GW of capacity, which would require investments of approximately $6.5 billion, it announced in November that it will collaborate with the private equity firm TPG to invest approximately INR 18,000 crore in a data centre initiative. By providing a specific amount for AI income, TCS has demonstrated that AI is a current growth engine rather than a gamble for the future. In the upcoming quarters, it will be interesting to see how quickly that momentum results in a revised revenue mix and new operational models throughout India's IT sector.