‘No Need to Panic’: TCS CEO Says AI Will Add Roles and Workloads, Not Job Cuts

Artificial intelligence is often discussed as a threat to jobs in technology. Tata Consultancy Services, argues it is more likely to widen the scope of work and create fresh demand across the IT services value chain. 

Artificial Intelligence Expands IT Services Work At TCS 

As per report by CNBC-TV18, speaking at the India AI Impact Summit, TCS CEO K Krithivasan rejected fears of large-scale job losses tied to artificial intelligence. He said, “There is no need to panic. Every time there is a disruption, the work expands.” 

Krithivasan noted that artificial intelligence can raise productivity in traditional IT services delivery, estimating gains of about 20% to 30%. However, he added that enterprises are unlikely to respond by cutting teams. Instead, efficiency may be used to clear backlogs faster and speed up adoption of new technology programmes. 

He also emphasised that artificial intelligence is expected to create new roles and use cases rather than remove opportunity. “We believe the pie will increase… There will be much more work to be done,” he said. 

Outcome Based Pricing and the Headcount Revenue Link 

As artificial intelligence changes how work is delivered, Krithivasan addressed the long running concern that revenue growth could become less connected to headcount growth.  

His view was that the shift is structural, and the industry needs to evolve towards outcome based pricing models rather than billing that is closely tied to labour. 

“It’s not a challenge… It’s the way the industry is moving towards, and we ought to adapt,” he said, arguing that demand can still expand even as delivery becomes more efficient. 

AI Stack Investments and India AI Data Centre Demand 

Krithivasan said TCS is already delivering advanced artificial intelligence projects for global clients, including drug discovery and claims process automation.  

He added that enterprises need stronger data foundations, modern workflows, and updated technology stacks before using artificial intelligence at scale, which can create demand across infrastructure, model development, orchestration, intelligent agents, and new AI enabled services. 

TCS is also positioning itself across the artificial intelligence stack. “We believe that you will be able to participate more in the AI ecosystem if you operate across multiple layers,” he said. 

The company has announced partnerships, including with AMD, and is investing in data centre infrastructure. Krithivasan called the approach a turning point, adding, “It definitely is a pivotal moment for us. Not only are we investing in infrastructure, we are also getting more acquisitive,” and that acquisitions are being pursued “at speed and scale.” 

Read More: AI Won’t Lead to Mass Layoffs Says TCS CEO K Krithivasan! 

India’s AI Data Centre Vision 

On India’s AI data centre outlook, he said the country may need “a capacity of at least 10 gigawatts” by 2030, versus around five gigawatts currently committed.  

He added that power costs that are about 30% cheaper could support India as a hub for inferencing and global model training and estimated that each gigawatt could attract up to $40 billion of investment. 

Conclusion 

Krithivasan’s message was clear: artificial intelligence is expected to widen the scope of IT services work, push outcome-based pricing, and accelerate demand for India’s AI data centre capacity rather than trigger job cuts. 

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