TCS Hails 2025 As Transformative Year For Artificial Intelligence
The Indian IT major, Tata Consultancy Services (TCS), has reported a significant surge in its AI-focused annualised revenue, reaching $1.8 billion in 2025. This rapid acceleration in AI demand has been attributed to the experimentation phase of 2023 and 2024, which has paved the way for the tangible deployment of AI.
Accelerating AI Demand
TCS President and COO, Aarthi Subramanian, highlighted the rapid growth in AI demand, stating that the company’s annualized revenues have increased from $1.5 billion to $1.8 billion. She noted that 2025 saw real adoption happening, with AI projects getting into production and value coming out of it.
Subramanian also mentioned that client conversations are now separated into two streams. The first stream is ‘getting ready for AI’, which involves foundation spending on cloud computing, data analytics, and cybersecurity. The second stream is ‘leading with AI’, where companies invest to create specific business differentiation.
Retooling Workforce for AI
To meet the growing demand for AI, TCS has aggressively retooled its workforce. The company has increased the number of employees with higher-order AI skills from 80,000 to 217,000 in the last quarter.
Subramanian stated that clients are increasingly focused on speed, asking how to build rapidly with AI. The number of projects delivered using rapid build methodology has increased significantly this quarter.
Indian Markets and AI Adoption
While Indian markets have lagged behind in AI deployment and trade, the tide is turning. More and more Indian companies are trying to sell AI, and the demand for AI is increasing.
TCS CEO, K Krithivasan, noted that the nature of client spending has evolved toward ‘short turnaround projects’ where AI infusion offers immediate returns on investment. He also stated that the company never looked at AI as a headwind, but rather as an opportunity.
Key Takeaways
- TCS has reported a surge in AI-focused annualised revenue, reaching $1.8 billion in 2025.
- The company has retooled its workforce to meet the growing demand for AI, increasing the number of employees with higher-order AI skills.
- Indian markets are catching up with AI adoption, with more companies trying to sell AI.
- TCS CEO notes that the nature of client spending has evolved toward ‘short turnaround projects’ where AI infusion offers immediate returns on investment.
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