Tata Consultancy Services (TCS) is set to make significant investments in artificial intelligence (AI) capabilities, according to Chairman N Chandrasekaran. In a letter to shareholders, Chandrasekaran highlighted the importance of technology and innovation in addressing global transitions in energy, supply chains, and AI. He emphasised the importance of AI and machine learning and added that TCS is aggressively investing in developing AI capabilities, such as AI-powered products and platforms. In addition, Chandrasekaran underlined the increased interest in technologies such as 5G, IoT, generative AI, and virtual reality/metaverse, which are projected to draw investments in the near to medium term.
Furthermore, Chandrasekaran addressed global supply chain developments, stating that corporations are rebalancing them for resilience and efficiency in the face of geopolitical shifts. He emphasised India’s involvement in the development of new global supply chain ecosystems, which has been fueled by massive capital expenditures in digital-first manufacturing, supply chain operations, and ecosystem integration with partners.
Chandrasekaran noted several innovations and developing business models in products, services, manufacturing, and distribution in relation to the energy transition. He emphasised the importance of investing in technology and innovation, particularly in sectors such as electric mobility, renewable power, hydrogen, and sustainable fuel, with IT and digital technologies playing critical roles as business enablers.
TCS’s remarkable success in the previous year, with sales exceeding INR 225,458 crore and a growth rate of 17.6%, was also noted by Chandrasekaran. He stated that TCS accomplished this growth while maintaining an industry-leading operating margin of 24.1% and finishing the year with a $34.1 billion order book.
In his letter, Chandrasekaran paid tribute to outgoing CEO Rajesh Gopinathan and extended his best wishes to K Krithivasan, who will take over as the new CEO and MD of TCS.
Overall, TCS’s investment in AI capabilities shows the company’s acknowledgement of AI’s revolutionary potential and its commitment to using technology and innovation to drive development prospects in the energy, supply chain, and AI sectors.