TCS is urging employees to use AI even if it reduces revenue: K Krithivasan, CEO

Tata Consultancy Services (TCS) CEO K Krithivasan said the company is encouraging employees to adopt artificial intelligence even if it reduces the company’s current revenue. Speaking at the Nasscom Technology Leadership Forum in Mumbai, he said employees should inform clients if work can be done faster, better, and cheaper using AI.

Krithivasan explained that TCS does not want to resist AI-led changes. Instead, the company wants its workforce of about 600,000 employees to focus on using AI to improve efficiency and create new opportunities. He said the company will adopt new business models where benefits increase as more AI-driven work is done.

He also said that senior leaders are required to build AI-based solutions themselves so they can understand how the technology works. According to him, AI is not just another technology upgrade but a major transformation that could change industries and society.

Recently, TCS reduced about 2% of its global workforce, around 12,000 employees, mainly in roles where skills could not be adapted to the AI era. The company believes employees are more interested in staying relevant in the new technology environment rather than receiving extra financial incentives.

Krithivasan added that TCS is also exploring new services related to AI. Many companies want to adopt AI but do not have proper data systems. TCS plans to help clients build data infrastructure, develop AI systems, and manage data effectively.

Meanwhile, Kotak Mahindra Bank CEO Ashok Vaswani said AI will definitely transform the banking sector, but it must be used with trust and responsibility. He said building a strong data system is the first step before AI tools can be used effectively.

Vaswani also said that company leaders must take responsibility for technology decisions. He emphasized that finance involves human emotions, and businesses must remember the human side even while adopting advanced technologies.

Krithivasan added that many company boards are pushing management teams to speed up AI adoption. He noted that while IT budgets are being adjusted, many business units are directly investing in AI to gain a competitive advantage.