Tata Consultancy Services CEO K. Krithivasan said artificial intelligence could contribute roughly 20% [1] of company revenue within four to six quarters [1].

The projection highlights a strategic shift for one of the world's largest IT services firms as it integrates generative AI into its core business model. While automation often triggers fears of mass unemployment, the company is positioning AI as a growth engine rather than a workforce reduction tool.

Krithivasan made the remarks during the company's Q1 FY27 earnings announcement. He said that AI will not reduce the company’s white-collar workforce. Instead, the technology will reshape how employees work by automating routine tasks such as software testing, and entry-level coding [2].

This transition is expected to create new employment opportunities. The CEO said the company will see a rise in roles focused on AI model training and deployment [2]. This approach aims to drive revenue growth and improve overall operational efficiency by shifting human labor toward higher-value activities.

Financial reports indicate the company is already seeing the impact of this technology. AI-related revenue has reached $2.3 billion [3]. Additionally, TCS reported a net profit of Rs 13,349 crore [4] for the first quarter of the 2027 fiscal year.

Despite the optimistic outlook, some reports suggest a tension between AI adoption and traditional revenue streams. Some analysts have noted that the company is urging staff to adopt AI even as the automation of routine tasks potentially risks some existing revenue models [5].

Krithivasan said the company will continue to grow its workforce as it scales these new capabilities. The shift toward AI-driven services is intended to maintain a competitive edge in the global technology market while evolving the skill sets of its thousands of employees.

“AI could contribute roughly 20% of TCS revenue within four to six quarters”

TCS is attempting to decouple AI automation from job losses, a move that contradicts the broader industry trend of using AI to lean out operations. By focusing on 'model training and deployment' as new job categories, the company is betting that the demand for AI implementation will outpace the displacement caused by automated coding. If successful, this allows TCS to increase its profit margins through efficiency while maintaining its status as a massive employer in India.