TCS CEO K. Krithivasan Urges Employees to Adopt AI Even if Technology Impacts Short-Term Revenue

Mumbai, February 25: Tata Consultancy Services (TCS), the largest software services provider in India, is actively encouraging its staff to utilise artificial intelligence tools to improve project delivery speeds and reduce costs. Chief Executive Officer K. Krithivasan stated on Wednesday that the firm is prioritising efficiency and customer value, even if the deployment of these technologies results in the cannibalisation of the company’s own revenue streams.

The announcement comes during a period of significant volatility for the Indian IT sector. Investor apprehension regarding AI-driven disruptions to traditional, labour-intensive business models has led to a loss of approximately USD 68.6 billion in market value across the industry during February. The Nifty IT index fell 21 per cent this month as of Tuesday, marking its steepest monthly decline in nearly 23 years. AI Adoption in Indian Corporate Real Estate Grows 18-Fold as 91% of Companies Pilot Technology, JLL Report Finds.

Prioritising Efficiency Over Revenue Protection

Speaking at the Nasscom Technology and Leadership Forum in Mumbai, Mr Krithivasan emphasised that resistance to technological change is not a viable strategy. He instructed associates that if a task can be performed faster or better using AI, they should proactively inform their clients. The CEO noted that while this might reduce the billable hours for specific projects, it is essential for maintaining long-term competitiveness.

“We are not afraid this technology will take away our livelihood,” Mr Krithivasan said. He expressed a firm belief that AI will eventually create more opportunities for the sector rather than diminishing them. By embracing the change now, TCS aims to position itself as a leader in the next generation of software services rather than defending an outdated operating model.

Industry-Wide Shift in Strategy

The stance taken by TCS aligns with other major players in the Indian IT landscape. Wipro has similarly indicated that rapid AI adoption is likely to boost overall demand for software services. Wipro’s Chief Strategist and Technology Officer, Hari Shetty, recently noted that the technology is expected to generate more employment opportunities than it displaces, as clients seek to integrate complex AI systems into their existing infrastructure.

Despite these optimistic internal views, the stock market remains cautious. The shift toward AI-assisted coding and automation challenges the "time and material" billing model that has underpinned the Indian IT industry for decades. Analysts are closely watching how firms will transition to value-based or outcome-based pricing models to offset the reduction in manual labour hours.

Long-Term Outlook for IT Services

TCS remains confident that the benefits of AI will outweigh the initial disruptions. The company’s leadership suggests that as clients save money on routine tasks, they will have more capital to invest in larger, more complex digital transformation projects. This cycle is expected to sustain the demand for high-level consulting and system integration services. Why Did Government Ban 30 OTT Platforms in India Including Ullu, MoodXVIP and Desiflix?

The company continues to invest heavily in training its massive workforce in generative AI and machine learning. This proactive approach is intended to ensure that employees are equipped to handle more sophisticated roles that AI cannot yet automate, thereby securing the firm’s relevance in a rapidly evolving global market.

(The above story first appeared on LatestLY on Feb 25, 2026 02:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).