Natarajan Chandrasekaran0:00
TCS is investing, building, and maturing the solution framework. It is showing in the pipeline. If you look at TCS's AI revenues, it has been growing consistently over the last four quarters. The company's AI revenue for every quarter has been consistently growing. If you look at the last four quarters, in Q2 it was 1.5 billion annualized, in Q3 1.8, and in Q4 it is 2.3. It is a CQGR of 22%. On an annualized basis, I expect the AI-driven revenues to grow 100% year-on-year. And in my opinion, the answer to the question, 'How much of the revenue will be AI-based in the next five years?' I think by 2028 to 2030, 100% of the revenue will have an AI component. So, there is no doubt in my mind that the faster the company can, let me say, influence, participate, and help the customers to transform to take the benefit of AI, the company will be in a good shape. Towards that, the company is making a lot of investments, not only in human talent, in producing assets, in building an AI operating system of sorts, which will have AI agents for every industry, and for integrating every company's new solutions to the traditional IT footprint, because the legacy footprint will stay in companies, not that everything will go away. And the human-AI interface. So, there will be a lot of AI agents. And the collective puzzle will form the AI operating system, which is what the company is investing in. The company is also believing in investing in the infrastructure, though AI data center is capital intensive, slightly different from the company's philosophy of asset-light model. This is a necessary thing to be able to play an end-to-end full-stack AI solution game. That is why the company has made the decision to invest in an AI data center. And not only the one which we are setting up in India, but we are also investing in building the sovereign cloud. This is not to say that the company's philosophy is to go away from the asset-light model. The company will continue to pursue the asset-light model, but will make the necessary exceptions because at the end of the day, what is important is what is the company's ability to offer the customers what they need in order to migrate or transform their organization by leveraging AI. So, the quick answer is AI is here to stay. It will make a huge impact in every industry. And the total addressable market, which is 1.6 trillion, which will go to 3 trillion, I believe eventually, it will keep spreading towards the entire GDP in different markets, not necessarily all for IT services companies, but for the technology world. So, this is a significant opportunity. The second follow-on question on what does it mean by employment? As I said in my opening speech, the company will have an equal number of AI workers, we call them AI agents, as there are employees. If the company has half a million employees, the day is not far when the company will have half a million AI agents. So, the question will be what all can be done by agents? And those things will be done by agents. And the company's employees and the AI agents will work together. And that will be the future. Will it definitely lead to a decrease in hiring? Absolutely. The company will not be hiring the kind of numbers that you used to hire. Why? The company, the industry, is likely to hire the same number of people they used to hire because certain portions of the work in the current scheme of things will go to AI agents. That does not mean there are no future opportunities. Once the transition happens, the AI world will produce so much more opportunities. There will be new talent that will be required. So, the company will continue to hire talent, but some of the work that is being done will go to the AI agents. That will be the nature of the transition that we have to go through not only as a company, as an industry, and as a country. So, we need to build a lot of AI skills so that people can be gainfully employed.
