India’s largest software exporter Tata Consultancy Services (TCS) has $1.5 billion worth of artificial intelligence (AI) and Generative AI (Gen AI) projects in the pipeline as of the first quarter ended June 30, said CEO and MD K Krithivasan, closing in with rival Accenture’s $2 billion in cumulative Gen AI revenue.
TCS had clocked in $900 million worth of AI and Gen AI projects in the pipeline as of the fourth quarter, ended March 31, 2024.
Speaking to the media at TCS’ Q1 earnings conference on July 11, Krithivasan said, “We are currently executing about 270 AI projects across TCS. Our AI Gen A pipeline has doubled in the quarter to $1.5 billion. Our investments in research and innovation continues.”
“We continue to see strong traction for our AI offerings in the market. Our WisdomNext platform, that helps the enterprises in adoption of Gen AI at scale, has received very strong customer reception,” he added.
Krithivasan said that these engagements continue to be for smaller-duration projects, however, some projects are turning out to be longer as the use cases mature over time.
The CEO further said the number of engagements going into production is steadily increasing. The company applied for 154 patents in Q1 and were granted 277 patents.
Last month, Accenture had announced that the company's new Gen AI bookings were worth over $900 million in its just-concluded quarter. This takes the total Gen AI bookings to $2 billion for the fiscal year to date.
Accenture and TCS are the only two big IT companies that have so far declared revenue from this nascent technology.
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.”
Also read: Indian IT cos struggle with Gen AI rollout delays amid rising compute, cloud cost
TCS declared its earnings after market hours. On July 11, share price of TCS ended flat at Rs 3,902 rupees at the National Stock Exchange.
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