TCS Chairman N Chandrasekaran | Photo Credit: Amit Vijay Mohile _12460

Tata Consultancy Services (TCS) will have as many AI agents as human employees over the next three years, said company Chairman N Chandrasekaran speaking at the TCS Annual General Meeting (AGM) for the first time in two years.

“At TCS, the transformation is already well underway. In last quarter of fiscal 2026, TCS had an annualised AI revenues of $2.4 billion, which is growing at a CQGR of 22.4 per cent. I predict that over the next 3 years, TCS will have as many AI agent as human employees,” said Chandrasekaran.

Hiring plans

Many shareholders during the virtual meeting asked about the company’s hiring plans in face of previous layoffs. Addressing these concerns, Chandrasekaran confirmed that there will be decreased in hiring as compared to earlier onboarding numbers.

“The company has half a million employee. The day is not far when the company will have half a million AI agents. Will it definitely lead to decrease in hiring? Absolutely. The company will not be hiring the kind of numbers it used to hire,” he said, adding that post-transformation there will be a need for new talent.

At the same time, he stressed that individuals need “a lot of AI skills” to be fully employed. In FY26, TCS decreased its workforce by nearly 26,000 employees, while originally estimating a measly reduction of 1200 employees.

Five AI opportunities

Noting the disconnect between the drop in Nifty IT index and positive company performance, Chandrasekaran said the disparity stems from a misconception surrounding the relationship between AI and IT services.

With agentic AI systems ready to enter enterprise workflows, Chandrasekaran listed governing intelligence as the biggest opportunity for TCS in the AI age. He also listed other significant focus points such as: updating the primary technological functions of large businesses, using AI to reimagine how businesses operate, managing and overseeing AI within organisations, sovereign AI and physical AI.

Future plans

Regarding future growth, Chandra flagged an asset-led model approach for the company, as opposed to the traditional headcount-to-revenue based model.

“Our focus is to get to double-digit growth on a year-on-year basis whether it happens in FY27 or FY28. If you are doing $2.3 billion AI revenue in a quarter on an annualised basis, we should look for proof points for it go to double and triple in coming quarters and automatically push annual growth rates up,” said Chandrasekaran.

Published on June 9, 2026