TCS CEO K Krithivasan says AI can kill most call centres: Report

TCS CEO K Krithivasan

Tata Consultancy Services (TCS) head K Krithivasan has highlighted that the progression of artificial intelligence (AI) will lead to decreased demand for call centres, impacting the industry not only in Asia but also in other regions.

Krithivasan told the Financial Times that although there is no job reduction so far, with multinational clients adopting generative AI, things will create an overhaul in customer help centres in the coming days. He said, "We are in a situation where technology should be able to predict a call and address it accordingly".

The TCS CEO's comments have once again highlighted the prospects of AI replacing many jobs, including agents in call centres and software developers.

The comments of TCS CEO are significant for India where according to Nasscome more than 5 million people are employed in IT and BPO processes.

He emphasised that while there has been exaggerated anticipation regarding the immediate effects of AI, its impact will be more evident in the long term. Additionally, he stated that there will be a growing demand for individuals with technological skills worldwide.

Krithivasan also said that TCS is working on projects of generative AI and it has doubled quarter over quarter to be worth $900 million at the end of the fourth quarter as reported by Financial Times. He said that the order flow will increase significantly for the next few quarters.

On the earnings front, K Krithivasan, Chief Executive Officer and Managing Director, said, “We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26% operating margin, validating the robustness of our business model and execution excellence. In an environment of global macro uncertainty, we are staying close to our customers and helping them execute on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership".