TCS Mobilising 40,000-50,000 Employees In Massive AI, Cloud-focused Effort
TCS is engaged in over 300 active AI projects, ranging from pilots to production stages
India’s largest IT company Tata Consultancy Services (TCS) is rallying employees at a massive scale through its AI.Cloud unit, which employs between 40,000 to 50,000 individuals actively engaged in Artificial Intelligence (AI), Generative AI and cloud projects.
Speaking exclusively with BW Businessworld, Krishna Mohan, VP & Deputy Head of AI.Cloud unit at TCS, said, “We established AI.Cloud unit to cater to multi-cloud environments and as well as our overall AI. We firmly believe that the power of generative AI can be fully harnessed through cloud.”
TCS has USD 900 million worth of AI and generative AI projects in the pipeline as of the fourth quarter ending 31 March 2024. This positions TCS closely behind rival Accenture, which reported USD 1.1 billion in cumulative revenue from AI projects in the first two quarters.
Upswing In Active AI Engagements
Discussing the financial and project pipeline, Mohan noted that TCS’s AI projects are on an upward trajectory, with the pipeline approaching a billion dollars.
During the Q4 FY24 earnings conference, TCS CEO and MD K Krithivasan had revealed that the AI engagements were at 200. Currently, TCS is engaged in over 300 active AI projects, ranging from pilots to production stages.
These projects are typically tailored to specific business units where immediate value can be demonstrated. “Our CEO had announced USD 900 million in pipeline in the quarterly results. Definitely pipeline is picking up. It’s near a billion dollars, and we have implemented a lot of projects,” he confirmed.
The rapid evolution of AI technology has been remarkable, according to Mohan. “We haven’t seen a technology that has evolved so fast and still be actually evolving so fast at such a pace in a long, long, time,” he said.
Despite many enterprises being in the early stages of AI deployment, the initial outcomes are promising, and Mohan anticipates substantial business impact within the next 24 to 36 months.
TCS categorises its AI initiatives in three broad categories: assist, augment, and transform.
Mohan revealed that while most current projects fall under the “assist” and “augment” categories, there is growing interest in “transform” projects due to their potential for significant value creation.
“Majority of the pilots are between ‘assist’ and ‘augment’. Augment is slowly picking up; transform are few and far between, but that’s also where a lot of customers see value,” he explained.
Beyond the AI.Cloud unit, TCS has shown a broader commitment to AI by training over three lakh employees on generative AI (out of the total six lakh), with many advancing to specialised training as well.
Work With Tata Group Companies
Mohan also told BW Businessworld that TCS is collaborating with other Tata Group companies, leveraging their collective expertise to implement AI solutions across various sectors.
“We’re working very closely with our group companies and Tata Group’s Chief Digital Officer Aarthi Subramanian and her team and TCS at large,” he said. The collaboration works on understanding the needs of group companies and implement AI projects across retail, financial services, and manufacturing verticals.
“A lot of AI projects are already rolled out. Pilots have actually been done, and we have participated in them. We are also helping them productionise them as well,” Mohan added.
Last week, Tata Consumer Products CEO Sunil D’Souza revealed that the FMCG division of Tata is collaborating with TCS to address its technology requirements, alongside other partners.
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