AI taking over at work? TCS says AI agents could match human workforce in 3 years – Firstpost

Tata Consultancy Services (TCS) is preparing for a future where artificial intelligence agents could match the size of its human workforce within the next three years, Tata Sons Chairman N Chandrasekaran said, highlighting the rapid transformation underway in the IT services industry.

Speaking at TCS’ 31st Annual General Meeting, Chandrasekaran said the company is aggressively adopting AI across its internal operations, client solutions and business frameworks.

“I predict that over the next three years, TCS will have as many AI agents as human employees,” Chandrasekaran said. He added that the day is “not very far” when the company will operate with an equal number of AI workers and human employees.

The Tata Sons Chairman outlined five major growth opportunities emerging from the AI revolution. The first involves modernising legacy technology systems and fragmented data infrastructure. The second focuses on redesigning business processes using AI across areas such as supply chains and customer experience.

Chandrasekaran said the third opportunity lies in managing and governing AI agents, ensuring security, compliance and cost efficiency as companies increasingly deploy autonomous AI systems.

He also highlighted the growing importance of “sovereign AI,” where governments and regulated industries build greater control over AI infrastructure and data. TCS has already launched sovereign AI initiatives in India and Europe, he said.

The fifth major area is “physical AI”, which brings artificial intelligence into real-world environments such as factories, warehouses and vehicles. He cited the example of a four-legged robot deployed for a global agribusiness firm to monitor hazardous warehouse conditions.

Addressing concerns around AI disruption, Chandrasekaran said TCS remains strongly positioned as enterprises increase technology investments.
“Margins have held, revenues are up, and the deal pipeline is stronger than ever,” he said, adding that as the cost of intelligence declines, more business processes will shift towards AI-driven systems.

He said nearly three-fourths of enterprises globally expect technology spending to increase over the next two years, largely driven by AI adoption.

“In enterprise AI, the scarcest resource will not be the model. It will be context and trust,” Chandrasekaran said, pointing to TCS’ long-term customer relationships and regulatory experience as competitive strengths.

TCS reported consolidated revenue of Rs 2.67 lakh crore in FY26, registering a 4.6 per cent year-on-year growth, while net profit increased 8.8 per cent to Rs 52,820 crore. The company’s total contract value crossed USD 40.7 billion during the year.