Visa storm masked TCS AI woes; now back in focus

Tata Consultancy Services Ltd’s struggle to sell artificial intelligence (Al) services and products to clients is back in the spotlight, even as the legacy offshoring business grapples with uncertain demand and barriers in the US, its largest market.

- Jas Bardia & Varun Sood

Siva Ganesan, who took over as Al.Cloud business head in July 2023 at India’s largest software services provider, quit earlier this month, according to two people aware of the matter. His exit followed the appointment of company veteran Amit Kapur to lead its new AI unit.

Two bosses for its AI business in a little more than two years reflect TCS's uncertainty regarding the new technology, especially since the business itself was overhauled at least three times in the past three years. The Mumbai-based company is also laying off 12,200 midto senior-level executives, or 2% of its workforce, to make itself “future ready”.