TCS Encourages Employees to Use AI Even if It Reduces Revenue…

Sarah J · 2026-02-28T16:28:22.000Z

India’s largest IT services company, Tata Consultancy Services (TCS), is urging its employees to adopt artificial intelligence tools across projects even if doing so reduces short-term revenue highlighting a strategic shift in how the industry approaches AI-driven efficiency. The message came from CEO K. Krithivasan during the Nasscom Technology and Leadership Forum in Mumbai, where he encouraged employees to use AI to deliver services faster, better, and more cost-effectively, even if this leads to lower client billing. Krithivasan emphasized that if employees discover ways to complete tasks more efficiently with AI, they should inform clients and implement those improvements even when it “cannibalises revenue.” This stance reflects a broader transformation in the IT services industry, which has traditionally relied on a labour-intensive outsourcing model where billing is closely linked to the number of employees working on projects. AI-driven automation challenges this model by enabling faster delivery with fewer resources. The push toward AI adoption comes at a time when investors are increasingly concerned about the impact of automation on the Indian IT sector. Market uncertainty around AI disruption has already contributed to a significant decline in technology stocks, with the sector losing roughly $68.6 billion in market value during February amid fears that automation could reduce the need for large engineering teams. Despite these concerns, TCS leadership believes that embracing AI early will create new opportunities rather than eliminate them. With more than 600,000 employees globally, TCS is encouraging staff to become fluent in AI tools and develop AI-powered solutions rather than simply experimenting with prompts. The company is also pushing senior leadership to build AI solutions themselves to better understand the technology’s potential. By prioritizing long-term transformation over short-term revenue protection, TCS is positioning itself as a company willing to adapt its business model to the realities of an AI-first technology services ecosystem.

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TCS Encourages Employees to Use AI Even if It Reduces Revenue… | SEINET