TCS Says It’s ‘Not Afraid’ of AI, Will Embrace Revenue Cannibalisation

CEO Krithi Krithivasan has emphasised that the company is not afraid of artificial intelligence (AI) and is willing to embrace AI even if it results in revenue cannibalisation. Speaking at the Nasscom Technology and Leadership Forum in Mumbai, he encouraged employees to use AI tools to deliver faster, more efficient solutions for clients — even if this leads to lower billable revenue under traditional models. Krithivasan said TCS believes proactive AI adoption will unlock new opportunities and client value rather than undermining its business. What This Means * TCS’s stance signals a strategic embrace of AI rather than cautious resistance. * Encouraging revenue cannibalisation reflects confidence in long-term AI-driven value creation. * Messaging aims to institutionalise AI fluency across TCS’s workforce. Key Things to Watch Going Forward 1. AI revenue growth and contribution to overall services. 2. Conversion of AI pipeline into new business models and offerings. 3. Client adoption and demand for AI-enabled solutions. 4. Impact on traditional IT services billing and margins. Opinion TCS’s public embrace of AI and willingness to accept revenue cannibalisation marks a bold strategic shift in the IT services industry. By encouraging associates to prioritise AI-first solutions even at the cost of legacy revenue, the company is signalling that future competitiveness hinges on innovation, efficiency and client outcomes. This approach may help TCS lead structural change in how services are delivered and monetised, even as traditional IT billing models evolve. The challenge will lie in translating AI use cases into sustainable revenue streams without eroding profitability. If execution stays disciplined, this focus on AI could help TCS maintain leadership in a transforming global technology landscape. Source: The Hindu No Recommendations