TCS Reorganises Structure to Fuel Higher Growth, Splits AI Unit

Tata Consultancy Services (TCS) has split its AI.Cloud unit into 2 separate business verticals, one for Artificial Intelligence (AI) and Data, and another for Cloud services. According to news reports, this is for handling each area independently as demand rises in both segments.

Reason for the Split

The AI.Cloud business was originally formed 2 years ago. According to the news reports, it has delivered growth higher than the company’s overall average. With increasing demand for AI and cloud services, TCS decided to separate the unit to improve operational focus and scale each line independently.

Leadership Changes in TCS

Siva Ganesan, who previously led the combined AI.Cloud unit will now head the AI & Data vertical. Krishna Mohan, former deputy head of the unit, will lead the Cloud vertical. Additionally, Ashok Krish has been named global head of AI, and Satish Byravan will lead the Data function globally.

AI and Data Unit Structure

The newly created AI & Data unit will act as a central team for all AI-related work at TCS. It will also include data services, as both functions are often interconnected in enterprise projects. The company noted that in many cases, organisations lack the data infrastructure needed to support AI adoption, and bundling the 2 services helps address this gap.

Hiring and Training

To support the new structure, TCS is hiring AI specialists from outside the organisation. At the same time, internal training programmes are being revised to equip current employees with the necessary skills in AI and data. The company is not disclosing exact figures for AI-related revenue as it does not report that category separately.

Read more: TCS vs Infosys vs Wipro: Which IT Giant Delivered Highest Profits in Q4FY25!

Cloud Vertical to Operate Independently

The newly formed Cloud division will continue to focus on enterprise cloud solutions and infrastructure. It will operate separately from AI & Data but remain aligned with broader company objectives.

TCS Share Price Performance

As of 09:21 AM on May 27, 2025, TCS share price was trading at ₹3500, a 1.05% decrease, with an 18.34% decline over the past 6 months and an 8.03% drop over the past year.

Conclusion

With this structural change, TCS is setting up focused teams to handle AI and cloud workstreams independently, following increased activity in both areas over the past year.

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