TCS Follows Accenture, Makes AI Adoption Key for Senior Leadership

Senior staff members at Tata Consultancy Services have been instructed to aggressively develop and test artificial intelligence solutions. Thus, indicating a stronger drive to incorporate AI into leadership responsibilities. During his speech at the Nasscom Technology Leadership Forum in Mumbai, CEO K Krithivasan advised top leaders to put theory aside and begin utilising the technology. According to him, the company is requiring all senior staff members to construct something. Adoption of AI, he contended, cannot be limited to younger teams.

TCS Adopting AI in Full Swing

Senior managers and associate directors were told that visible AI adoption would now be taken into consideration when discussing talent and promotions, according to a number of media sources. A representative for Accenture affirmed the policy and said that the company's strategy heavily relies on AI capabilities. Days after Accenture made consistent usage of internal AI tools a requirement for advancement to senior leadership positions, the message was sent. Promotions at TCS are not formally linked to the usage of AI. However, its posture conveys a comparable sense of urgency.

According to Krithivasan, TCS is not worried that this technology will eliminate its means of subsistence and is in fact encouraging staff to use AI in client projects, even if doing so means "cannibalising revenue streams". Employees are being instructed to inform clients that AI can complete tasks more quickly, more effectively, and more affordably, even if doing so temporarily lowers billing. The comments are made at a sensitive time for the IT services industry.

Loosing Tech Clients Fear Looms Over TCS

Concerns that generative AI may upend established outsourcing and software services models have put pressure on technology equities both internationally and in India. A Jefferies trader referred to the recent software stock sell-off as a "Saaspocalypse", according to Bloomberg, expressing investor fears about pricing power and long-term growth. These fears have been heightened by recent product introductions.

Following the release of new plugins for their Claude AI tool, Anthropic saw an increase in market volatility. This raises concerns that a significant amount of the work involved in coding and IT services may be automated. TCS seems to be embracing that change rather than fighting it. According to Krithivasan, the organisation is expanding access to AI in order to foster familiarity and large-scale experimentation. He admitted that while senior leaders run the risk of staying away from practical application, younger colleagues are frequently more at ease with new tools.

According to him, the company has discovered that junior associates are more at ease and skilled with technology. Senior-level employees hear a lot about technology, but they don't get their hands dirty.

TCS's AI collaborations have also grown stronger. The launch of the company's data centre business was preceded by the announcement that OpenAI would be the initial client. Company comments indicate that the partnership will start with 100 MW of capacity and has the potential to build up to 1 GW through OpenAI's Stargate initiative.