TCS' AI pipeline at $1.5bn; focus on talent development, AI engagement

India's largest software company, Tata Consultancy Services (TCS), is investing heavily in artificial intelligence (AI) and generative AI, with a project pipeline exceeding $1.5 billion, according to a Moneycontrol report citing a top executive.

This AI initiative aims to transform the work environment for over 600,000 TCS employees. The company has established an AI experience zone in India, allowing engineers and employees to develop and experiment with AI and generative AI solutions.

On the talent development front, TCS is working on an AI-based interview coach that evaluates both the content of an employee’s responses and their body language and tone, providing corrective feedback.

Additionally, TCS is enhancing its internal operations, including human resources (HR), by implementing AI-based tools such as interview coaches for hiring and training, the report claimed.

“As much as we are doing it (AI proof of concepts and implementation) for the customers, we also need to do it internally so that we practise what we preach,” the report quoted Milind Lakkad, TCS's chief HR officer, as saying.

Lakkad elaborated that TCS is building a comprehensive framework of AI skills within the organisation. This includes AI-based talent acquisition, engagement, deployment, and development.

How is TCS upskilling employees in AI?

To further support skill-building, TCS has created labs that offer environments and simulations tailored to specific use cases, helping both customers and employees learn from real-world challenges. The company is currently handling over 270 AI and generative AI engagements, integrating these technologies into various functions such as marketing, finance, and compliance.

More than 300,000 employees have received foundational training in AI, emphasising that these numbers reflect basic training in generative AI. TCS is also developing a hierarchy of AI skills and building expertise across different levels within the organisation, leveraging the knowledge of its own experts, the report added.

Lakkad discussed the company's approach to skill development, explaining that a significant portion of building the pyramid of AI skills within their various businesses is being handled by their own experts, whether within TCS or for other larger organisations in their ecosystem.

Meanwhile, during the company’s annual general meeting (AGM) in May, TCS Chairman N Chandrasekaran acknowledged the potential job losses due to AI and generative AI automation but also highlighted the increased productivity and new job opportunities these technologies would create. Speaking at the company's AGM in May, he emphasised the importance of reskilling employees to prepare them for these changes.

TCS's focus on AI intensified with the establishment of a dedicated AI Cloud business unit in July 2023, marking a significant shift during the company's first restructuring under CEO and MD K Krithivasan.

TCS returns to pre-pandemic office levels

Last week, TCS, the country's largest IT services exporter, reached pre-pandemic levels of employees working from offices.

Lakkad told PTI that "it is kind of business as usual" for the company, which employs over 600,000 people, and that TCS will not closely track this metric in the next few quarters.

Additionally, TCS reported a slight decline in the number of women employees to 35.5 per cent as of June this year. However, Lakkad added that this is not a concern, citing the company's pre-pandemic policies and measures designed to support employees' needs.