Tata Consultancy Services (TCS) CEO K Krithivasan said that the company has reached USD 1.5 billion (Rs 135243750000) in annual revenue from artificial intelligence (AI) and has completed more than 5500 AI projects so far. This is the first time TCS has officially disclosed its AI revenue highlighting how quickly AI has become a key growth driver for the IT major. The company is positioning itself to become the “world’s largest AI-led tech services company.” Speaking at TCS Analyst Day 2025 Krithivasan said AI adoption among TCS clients has grown rapidly. Around 54 of TCS’ top 60 clients are now using the company’s AI services. Nearly 85 per cent of clients with annual deals above USD 20 million rely on TCS for AI-related work. He added that AI alone has seen quarter-on-quarter growth of 16.3 per cent driven by strong demand across industries. “AI is contributing to growth in every service line—whether it’s BFSI or life sciences” he said. According to Krithivasan newer and non-traditional services now account for nearly USD 11 billion of TCS’ total revenue. Notably TCS’ AI revenue is growing faster than the company’s overall average growth rate underlining its strategic importance. Bigger ambitions in AI Krithivasan said TCS’ long-standing client relationships deep understanding of customer needs and continued investments place the company in a strong position to lead the global AI services market. “We believe we are destined to become the world’s largest AI-led tech services company” he said. To support this ambition TCS has been stepping up investments in AI infrastructure making targeted acquisitions and reshaping its organisation around its AI roadmap. During the company’s Q2 earnings call in October TCS said it plans to invest about $6.5 billion to build 1 gigawatt of data centre capacity over the next five to seven years. In November TCS also announced a USD 2 billion (around Rs 18000 crore) investment along with global asset manager TPG to fund its AI-focused data centre business HyperVault. The investment will be made in phases over the coming years. Alongside infrastructure TCS is strengthening its AI consulting capabilities. In the last three months it acquired two Salesforce consulting firms—ListEngage MidCo for USD 72.8 million and Coastal Cloud in a USD 700-million all-cash deal—further reinforcing its push into AI-led digital services. TCS sharpening its focus on AI-native freshers While the company had earlier said it plans to hire around 42000 freshers in FY26 it will now place stronger emphasis on recruiting AI-ready graduates and trainees. Alongside this TCS is also tweaking its hiring strategy by bringing in lateral talent with future-focused skills. Calling it an exciting phase Aarthi Subramanian Executive Director President and Chief Operating Officer of TCS said today’s graduates are naturally comfortable with AI tools.“These fresh graduates are very AI-native. They know how to use AI in a very organic way. Our intake of fresh trainees from universities has actually doubled” she said. Subramanian explained that AI is also creating entirely new job roles within the company. These include positions such as rapid build engineers and rapid build leads which are becoming increasingly important as technology evolves. TCS she said is focusing on future-ready hiring to attract top talent. She added that the company has significantly increased hiring in what it calls its “big bets” — areas such as cybersecurity cloud enterprise solutions advisory and consulting — to stay closer to customer needs.“More than 50 per cent of our experienced hires today come with next-generation skill sets” she noted. In July TCS had also announced plans to reduce about 2 per cent of its workforce or over 12000 employees in FY26 as part of efforts to become more agile amid fast-changing technology trends. At the same time the company has stepped up its AI training and skilling efforts. Subramanian said that over the last six to eight months TCS has built one of the largest AI infrastructures for employees.Around 600000 TCS employees now have access to AI tools including multiple models coding assistants and hyperscaler AI platforms used to build solutions for clients.