TCS lifts curtain to peg yearly revenue from Al at $1.5 bn

In a first for homegrown IT services companies, Tata Consultancy Services Ltd (TCS) has said it earns $11 billion from disruptive technologies, including $1.5 billion from AI.

- Jas Bardia

K. Krithivasan, CEO and MD of TCS.

(PTI)

The numbers are annualised as of the end of September quarter."

If you take ADM (application development and maintenance), testing and BPS (business process services) out, the nontraditional or the new-age services constitute almost $11 billion of our revenue, and all of them are growing at a rate higher than TCS's average rate," K. Krithivasan, chief executive officer (CEO) and managing director (MD) of TCS, said at its annual investor day on Wednesday.

To be sure, TCS's $1.5 billion AI revenue cannot be compared to Accenture's $2.7 billion in its 'advanced AI' business last year. Accenture chair and CEO Julie Sweet had clarified that its advanced AI business includes only Gen AI, agentic AI, and physical AI, and does not include data, classical AI, or AI used in the delivery of its services. TCS has not clarified how it defines AI-related revenue, for now.

On Wednesday, TCS's management sought to assuage concerns about the impact of Gen AI on outsourcing services and reaffirmed that it does not plan to pare its aspirational profitability target of 26-28%.