BENGALURU, India (Diya TV) — Tata Consultancy Services has reported $1.5 billion in annual artificial intelligence revenue and said it has completed more than 5,500 AI projects, marking a major milestone in the company’s push to become an AI-led global technology services provider. The announcement came on Dec. 17 during TCS Analyst Day 2025, where CEO K. Krithivasan outlined how AI is driving faster growth across industries and reshaping the company’s hiring, investment, and service strategies.
TCS disclosed its AI revenue for the first time, signaling the growing scale of its AI business. Krithivasan said AI-related services now generate $1.5 billion each year. He added that AI growth is outpacing the company’s overall growth rate. About 54 of TCS’s top 60 clients use the company for AI services. Nearly 85% of clients with annual deals above $20 million rely on TCS for AI work. Krithivasan said AI revenue alone grew 16.3% quarter over quarter, reflecting strong demand from global customers.
“This is reflected in every service line,” he said. “The AI revenue is growing significantly across BFSI, life sciences, and other sectors.”
Krithivasan said AI-led transformation is helping TCS reimagine its core services. New-age and non-traditional services now generate close to $11 billion in revenue. He said these services are accelerating growth across the company. TCS believes its deep customer relationships and long-term experience give it an edge in large-scale AI adoption. Krithivasan said the company is confident about its direction.
“We feel that we are destined to be the world’s largest AI-led tech services company,” he said.
TCS continues to invest heavily in AI infrastructure to support future demand. During its October earnings call, the company said it plans to invest about $6.5 billion to build 1 gigawatt of data center capacity over the next five to seven years. In November, TCS announced a $2 billion investment with global asset manager TPG to expand its AI data center business, HyperVault. The investment will roll out in phases over the coming years.
The company has also strengthened its AI capabilities through acquisitions. In less than three months, TCS bought two Salesforce consulting firms. It acquired ListEngage MidCo for $72.8 million and Coastal Cloud in a $700 million all-cash deal.
TCS is reshaping its hiring approach to support its AI roadmap. While the company had earlier planned to hire around 42,000 freshers in FY26, it is now focusing more on AI-native trainees. Executive Director and COO Aarthi Subramanian said fresh graduates bring strong AI skills. She said many use AI tools naturally and adapt quickly to new technologies. TCS has doubled its intake of AI-ready trainees from universities.
“AI is introducing new roles,” Subramanian said. She pointed to positions such as rapid build engineers and rapid build leads, which focus on faster solution development.
TCS is also hiring more lateral talent with future-ready skills. Subramanian said the company is expanding advisory and consulting teams in key areas like cybersecurity, cloud, and enterprise solutions. More than 50% of experienced hires now come with next-generation skill sets, she added.
In July, TCS said it would reduce its workforce by about 2%, or more than 12,000 employees, in FY26. The company said the move aims to improve agility as technology disruption accelerates. At the same time, TCS has expanded its internal AI skilling program. Subramanian said around 600,000 employees now have access to AI tools and infrastructure. This includes coding assistants, AI models, and tools from global hyperscalers.
She said the company has built one of the largest AI platforms for employee use in just six to eight months. As global demand for AI services rises, TCS is positioning itself at the center of enterprise AI adoption. With rising AI revenue, large investments, and a shifting talent strategy, the company is signaling that AI will remain core to its growth story.
