TCS Chair Says AI Agents May One Day Match Its Workforce
N. Chandrasekaran said AI will reduce hiring needs in IT services but create new roles as companies deploy and govern AI systems.
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[Image source: Krishna Prasad/MITSMR India]
Tata Consultancy Services Ltd (TCS) expects the number of AI agents it deploys to eventually rival its human workforce, Chairman N. Chandrasekaran said at the company’s annual general meeting, outlining how artificial intelligence is changing the economics of the IT services industry.
Speaking at the 31st Annual General Meeting, Chandrasekaran said TCS sees AI creating new demand rather than shrinking opportunities for technology services firms.
The comments come as investors increasingly question how advances in AI could affect employment across the global IT sector, where software development and maintenance have traditionally relied on large engineering teams.
Addressing those concerns, Chandrasekaran said the industry is entering a new phase where companies will be asked not only to build software but also to help businesses deploy, manage and govern AI systems.
TCS reported annualized AI-related revenue of $2.4 billion in the fourth quarter of FY26, with the business continuing to grow rapidly, he said.
According to Chandrasekaran, enterprises worldwide are expected to increase technology spending over the next two years, with AI emerging as a key driver of that investment.
He said TCS sees opportunities across five broad areas, including modernization of technology systems, redesign of business processes, AI governance, sovereign AI initiatives and physical AI applications.
Despite concerns that automation could disrupt the IT services business model, Chandrasekaran said the company’s financial performance remains resilient.
“Margins have held. Revenues are up. The deal pipeline is stronger than ever,” he said.
He added that trust and industry knowledge could become increasingly important as businesses adopt AI at scale.
