TCS CEO pushes for AI-first solutions, even at the risk of cannibalising revenue

TCS CEO K Krithivasan speaking at the Nasscom Technology and Leadership Summit 2026 in Mumbai.

Tata Consultancy Services (TCS) is encouraging its workforce to provide AI-first solution to clients even if it means cannibalising revenue, chief executive officer K Krithivasan said on February 25.

The comments come at a time when talk of end-to-end Gen AI software eating up much of the value of IT services has become ubiquitous and roiled stocks of information technology firms in India and across the world.

“I am encouraging you to ensure that the solution you provide to your customer is AI-first, even if it means that we are cannibalising the revenue,” Krithivasan said on February 25 in Mumbai at the Nasscom Technology and Leadership Summit 2026.

He was responding to a question by moderator Sindhu Gangadharan, who is the managing director of SAP Labs in India, on what is being done to incentivise for employees to learn AI.

In simple terms, companies like TCS earned money by deploying large teams of engineers who worked on projects over long periods. With AI, much of that work can now be done faster and with fewer people. Therefore, when TCS pushes AI-first solutions, it is encouraging clients to use technologies that may reduce the amount of traditional work TCS used to bill for.

“Actually, we are helping them to stay in the current industry world,” the CEO of India's largest IT services company added.

TCS is not just encouraging but insisting that all employees become AI-fuelled. “We are actually telling our associates that if you find that you can do something faster, better, safer with AI, you should probably go and tell your customer if you can do it, if you are willing to. Because we are not afraid this technology will take away our livelihood, we believe it's going to open up more,” he said.

Employees can enjoy the benefits of delivering more by doing more and not by resisting this change, he added.

At 12.220, the TCS stock was trading at Rs 2,643.60 on the National Stock Exchange, gaining almost 3 percent from the previous close. The scrip was hammered in the previous session and plunged almost 4 percent as IT stocks took a hammering over AI fears.