India's largest software exporter, Tata Consultancy Services (TCS), announced on October 10 that it is currently managing over 600 artificial intelligence (AI) and Generative AI (Gen AI) projects, either in production or development. The IT behemoth is also setting up interdisciplinary AI offices and Centre of Excellence (CoEs) to strategise, prioritise, and implement AI at scale, the company said.
“While discretionary spending was impacted, clients continued to invest and see improved outcomes using AI/Gen AI,” the company said in a statement.
However, TCS refused to disclose its earnings from AI and Gen AI deals during the quarter. In the first quarter, TCS reported a pipeline valued at $1.5 billion for AI and Gen AI initiatives, a significant increase from $900 million in the fourth quarter.
The company further said it is seeing continued momentum in AI/Gen AI adoption, with the underlying technology gaining maturity at a "very rapid pace."
"We are now helping our most mature customers set up interdisciplinary AI offices, where
business and technology come together to rapidly turn ideas to AI POCs and scale them
to production in an agile manner," TCS chief executive officer K Krithivasan said while addressing the post-earnings conference call.
He added there is also a growing interest in using Gen AI throughout the software development lifecycle, including legacy migration and modernisation initiatives across all industries. As an example, TCS said it was selected by the UK entity of a leading global insurer to transform its IT organisations to meet the strategic growth objectives.
Last month, Accenture, the world’s largest IT company, reported $1 billion in new Gen AI bookings for the quarter.
Accenture and TCS are the only two major IT companies that have declared revenue from this nascent technology so far.
Also read | Indian IT cos struggle with Gen AI rollout delays amid rising compute, cloud cost
Julie Sweet, chair and CEO of Accenture said, "We continue to accelerate our leadership in Generative AI, which we believe is the most transformative technology of the next decade, delivering $3 billion in new bookings for the year."
In February, at the Nasscom Technology and Leadership Forum (NTLF) 2024 in Mumbai, Krithivasan said, “Generative AI in most places is being used for experimentations and PoCs (proof of concepts), it is too early to call it mainstream or say it is causing reduction in workforce. That’s not true.”
Shares of the company closed at Rs 4,227.90 today, down 0.6 percent on the National Stock Exchange.
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