According to CEO and managing director K Krithivasan and chairman N Chandrasekaran's recent communications to shareholders, Tata Consultancy Services (TCS) is making significant advancements in the field of Artificial Intelligence (AI), particularly in generative AI (genAI). This is in the rapidly changing digital landscape. In addition, the business anticipates a comparatively improved economic picture for the 2025 fiscal year.

In his letter to shareholders, K Krithivasan described in detail how TCS is at the forefront of using generative AI to boost productivity and have previously unheard-of effects across a variety of industries. Notably, the business combined its cloud and AI teams into the AI.Cloud division in FY24. During the previous fiscal year, 300,000 TCS workers received generative AI technology training as a result of this calculated decision. Additionally, TCS has been adding AI capabilities to its suite of software products, such as TCS Bancs for core banking and other cybersecurity solutions, which shows a notable increase in operational security and efficiency.

The banking industry is one where the use of AI and GenAI is particularly noteworthy, since loan processing, insurance claim processing, and payouts have all accelerated. Additionally, these technologies help TCS's largest clientele—financial institutions—use data more efficiently to personalize their offerings, which boosts client acquisition and retention.

Krithivasan also emphasized TCS's initiatives in other fields. The firm is actively engaged in the energy transition, developing green hydrogen and biofuels using artificial intelligence (AI) and building digital platforms to assist customers in lowering their greenhouse gas emissions. AI in healthcare is transforming the delivery of treatment, speeding up the research of new drugs, and allowing remote care by increasing productivity and mitigating the severe scarcity of qualified personnel. Artificial intelligence (AI) technologies in manufacturing, such as computer vision, augmented reality, and machine learning, are saving costs and enhancing productivity and safety on factory floors.

Another domain where TCS is dominating is the transition of the global telecom sector to 5G and 6G technology. Future corporate operations depend on high-speed, low-latency networks, which these technologies provide. TCS has created sophisticated telecom and communications R&D facilities in Bengaluru and Gurugram, and is now working on 5G/6G communication stacks utilizing open standards. In fields including Open Radio Access Networks (O-RAN) radios and 5G SA Core, the business is developing native technology.

Regarding the business climate, Krithivasan observed that clients are still giving priority to initiatives that have a quicker rate of return on investment and are deemed business-critical. Although clients still want transformation, they now want it to be paid for with operational savings.The primary themes of engagement have been cost optimization and cloud transformation, with demand being propelled by improvements in customer and employee experiences, vendor consolidation, and cloud migration and transformation.

With respect to the macroeconomic prospects, Chandrasekaran offered a sanguine assessment. He pointed out that although there are major changes taking place in the world, things are looking up for the macro outlook at the moment, with improved growth, disinflation, and monetary easing on the horizon. Nonetheless, existing supply chains are still being altered by geopolitical issues, which forces businesses to realign their supply chains for efficiency and resilience. According to Chandrasekaran, new global supply chain ecosystems are emerging, with India becoming a key player in sophisticated manufacturing.