TCS Pioneers Generative Artificial Intelligence (Gen AI)
IT bellwether Tata Consultancy Services (TCS) is placing a significant bet on generative artificial intelligence (Gen AI) as an emerging technology.
The company has already received more than 100 offers from clients, showcasing the growing interest in this transformative field. TCS aims to leverage its extensive expertise by involving its 65,000 domain experts across different industries and utilizing its pool of about 20,000 technology solutions and enterprise architecture.
TCS recognizes the importance of defining and enforcing "guardrails" to effectively leverage and implement Gen AI. By engaging in over 50 Proof of Concepts and pilots, TCS is actively exploring the potential of Gen AI and working towards realizing its benefits.
K Krithivasan, MD & CEO of TCS, emphasizes that an enterprise-wide initiative is crucial for fully harnessing the technology's potential, requiring deep partnerships between business, legal, risk and compliance, and data technologies.
With a commitment to innovation, TCS's corporate R&D group has filed an impressive 710 patents for AI innovations over the past five years. Out of these, 282 patents have already been granted, highlighting TCS's dedication to advancing the field of artificial intelligence.
The company has also invested in training its workforce, with 50,000 associates skilled in Artificial Intelligence-Machine Learning (AI-ML) through top external certifications. In FY23, TCS associates dedicated 1.4 million hours to learning AI-ML or related skills.
To ensure a holistic approach to Gen AI, TCS plans to create a talent pool of over 100,000 Gen AI associates, although a specific timeframe was not provided.
The company is actively engaged in large-scale internal talent development across multiple Gen AI solutions while forming partnerships with hyperscalers. By aligning its talent and resources, TCS aims to drive the widespread adoption and successful implementation of Gen AI.
TCS remains optimistic about its technology spend in the long term, and its robust pipeline of deals supports this outlook. While acknowledging a near-term surplus due to uncertainty, TCS affirms that its clients continue to invest in technology.
The company's MD & CEO, K Krithivasan, expresses confidence in the tech market while refraining from commenting on recent incidents.
N Ganapathy Subramaniam, the COO and executive director of TCS, reassures stakeholders that the company will improve processes to prevent similar incidents in the future. Additionally, TCS' chief human resources officer, Milind Lakkad, reveals that 70% of employees will receive their full variable pay, with the remaining 30% dependent on business performance.
Lakkad also expresses optimism that attrition rates will return to comfortable levels.
In the first quarter, TCS reported a 24.39% increase in total contract value compared to the previous year, reaching $8.2 billion. The UK market drove this growth with a 16.1% year-on-year increase in constant currency terms.
Notably, North America and Continental Europe also experienced positive growth at 4.6% and 3.4% respectively.
Through its strong focus on Gen AI and commitment to innovation, TCS aims to drive transformative change and create a future powered by artificial intelligence.