CEO of TCS believes AI won’t result in job losses in India or globally
The chief executive officer and managing director of Tata Consultancy Services (TCS), the biggest IT services company in India, K Krithivasan, said that generative AI will not result in a general loss of employment.
In a recent interview with Financial Times, TCS CEO Refuted the idea that generative AI will result in a loss of employment, saying that “the world is going to need more and more people, not fewer people, in terms of technology talent—and India has so many people.”
The capacity of Gen Al to provide original content and data is propelling innovation in many industries. In the fiscal year 2025, we anticipate a broader uptake, with an emphasis on smooth integration with existing processes using a “human-in-the-loop” methodology.
Krithivasan informed FT that the effects of Gen Al will be felt over a longer period of time rather than anticipating to see improvements over the next two to three quarters. Krithivasan cautions against overestimating the immediate influence of generative Al, even with its potential for transformation.
During the March quarter, TCS’s pipeline for Al and genAl more than quadrupled to $900 million. Krithivasan said during the most recent earnings conference that he is progressively seeing a few Gen A use cases go into production.
According to him, companies are searching for POCS (proofs of concept) on the efficiencies that can be enabled in application development, application maintenance, and deployment automation. Gen-Al is unwaveringly at the forefront of technological trends, he added.
“It will take time for Gen Al’s advantages to fully materialize, and businesses and society still face many obstacles. These include rethinking key business processes, reskilling and upskilling the workforce, and managing the risks associated with Gen Al. Following the release of the fourth quarter results for the fiscal year 2024, Krithivasan said in the most recent earnings call that customers are trying to scale out POCs and pilots by putting in place the appropriate safeguards.
AWS and TCS are collaborating to provide 25,000 TCS workers with GenAl capabilities. Amazon Web Services (AWS) and TCS recently announced a partnership wherein AWS would assist in providing 25,000 workers with the most up-to-date cloud and GenAl capabilities. According to a release, the multi-year agreement aims to speed up cloud transitions and provide clients with access to GenAl Solutions.
