Tata Consultancy Services (TCS) is significantly expanding its artificial intelligence initiatives, with Chairman N Chandrasekaran stating that the company is building a large number of AI agents and could eventually have as many AI agents as human employees.

Speaking at the company's Annual General Meeting, Chandrasekaran emphasized the growing importance of AI in TCS' business. He noted that the company's AI revenue has grown consistently over the past four quarters, with compound quarterly growth of 22% during the period. AI-related revenue reached an annualised run rate of nearly $2.5 billion in the most recent quarter.

Addressing concerns that artificial intelligence could disrupt the traditional IT services model, Chandrasekaran argued that AI represents a significant growth opportunity for the technology industry. He said the sector's expertise in implementing complex technologies across large enterprises remains highly relevant and will become even more important as AI adoption accelerates.

Drawing comparisons with previous technology transformations, he stated that lower-cost intelligence enabled by AI is expected to broaden technology adoption across industries and drive greater demand for digital transformation initiatives. As businesses increasingly integrate AI into operations, decision-making, and customer interactions, enterprise technology spending is likely to rise, creating additional opportunities for IT services providers.

Chandrasekaran highlighted TCS' work with a global banking client, where the company has developed an AI platform capable of managing end-to-end customer processes. He added that AI is enabling businesses to fundamentally redesign operations across areas such as supply chains, customer engagement, and service delivery.

He also pointed to the growing need for AI lifecycle management as enterprises deploy AI agents at scale. Services related to training, governance, compliance, monitoring, security, and cost optimization are expected to become major long-term growth areas for technology companies.

In addition, Chandrasekaran noted rising demand for sovereign AI infrastructure as governments and highly regulated industries seek greater control over data, compliance, and security requirements. TCS has already introduced sovereign AI infrastructure offerings in India and Europe to address these needs while supporting clients in integrating AI into existing technology environments.

According to Chandrasekaran, artificial intelligence is expanding the addressable market for IT services and is expected to play a central role in the next phase of growth for both TCS and the broader technology sector.