NDTV Profit | TCS vision of Artificial Intelligence and Agentic AI | Sandip Agarwal, #Sowilo

Hinzugefügt: 2026-05-25

[00:00:00]Yeah. Okay. All right. Let's talk about Tata Consultancy Services. It's shifting towards an AIEL model with uh AI playing a bigger role across operations and decision making. Uh chairman N Chandra Shakharan said that it is moving beyond support functions to become core to how enterprises run. Uh let's find out what this is all about and let's head to Jasmid first uh to get a sense of what that is. Just >> well Alex very good morning and thank you for that. TCS is among the few companies that have reported the AI revenue and here the management is giving the AI outlook for FI27 and the key foundational changes that they are implementing. Firstly on the AI front they give that the AI is becoming now infrastructure of intelligence. Further also make a note that the AI is influencing how the enterprise are planning the strategies and also managing the risk going forward. Further recall AI is not just a layer but a operating foundational when it comes to the overall changes that they seeing.

[00:00:55]Further the company has also nearly trained 2.7 lakh employees with AI skills which is three times of what was in the last year which also shows how quick the company's going into the AI space. While the company has also given out the four priority focus area where they would like to focus in the coming period. First one is building AI operating system so that they can deploy AI with the organizations. Secondly is to construct India's first AI focused data center. Further, the company also plans to strengthen the AI infrastructure by partnering with nearly 3,600 AI firms, OEMs as well as hyperscalers. While lastly, company to also establish secure and built AI infrastructure as well. So, all in all, we do see the outlook to be positive and constructive for AI but wait and watch of how does the AI revenue which is a very small part of the overall revenue turns out going ahead. Got it. Okay. Uh we're joined uh this morning and thanks so much for that just by separal fund manager at Soilo investment managers.

[00:01:51]Sep thanks so much as always for taking the time and in the recent past we've spoken a few times about uh it and uh from an original stance of negativity because of the kind of drop that you've seen in prices you turned and you changed your view but specifically on this and adoption of AI increase of share in revenue what do you make of the latest >> yeah hi good morning and uh thanks for having me on the show so you know I was going through the annual report and I think uh the annual report has been done very nicely and what it is trying to explain the whole ecosystem of how thick new technology works. So uh just I will take 30 seconds to explain you the whole change. So basically you know whenever a new tech comes and remember that after 2004 it is now 22 23 years when a big change is happening in the hardware side and big growth has happened in the hardware side because of AI the GPU chips and related infrastructure has been purchased at a large scale. So it was overdue 20 years not much spend has happened in hardware very minuscule growth. So that that hardware is getting changed and always remember when new technology comes when primarily the technology needs the change in hardware because of processing capability, storage capability or security which has happened in this case the hardware has to go through revamp and and a huge growth comes and that is the reason you are seeing that all the providers of the hardware whether Nvidia or AMD or anyone else they have been benefited in a in a very very big way. Now after hardware what happens is that the software products and the ecosystem of software around that and the platforms around that uh grow very fast. So first of all hardware growth will be insane. It will be like triple digit and all that which we have already witnessed. Now the software and related product growth will also be substantial and then there'll be distribution platform growth which is like the Microsofts and the GNAI and the other platforms which are building in around that uh the the the to distribute the the technology or distribute it to the masses and the enterprises. So we are seeing good growth there also and the companies are doing well they are reporting 20 25 30% growth and the fourth level will be when this companies uh the the the distributors they will be serviced by the outsourcers and that stage I think will start coming from this year I'm again repeating that our industry is very matured I am not expecting a double digit kind of growth at industry level but I think 5 6 7% growth for the industry for 3 4 years is minimum expected and depending on the size of the company the growth could be higher so small and midcap will higher growth. So that is the way we should look at. So I think they have very nicely explained the whole thing into the report and that is what they're trying to say that okay hardware we are not there and hardware growth generally remember that you know it is a hawkish stick growth but it will fall also like that and then you will see 10 15 years of only maintenance purchases happening in hardware. So these all stocks which are today looking 7 8 time 10 times P and cheap and all that this is all story I think when the decline happens and all those then these stocks will be looked at as a price book value basis and and similarly the software product also will go through much but little lesser volatility. uh the best will be the the distributors which are the Microsofts and all which are building around and distributing this because they have the platform to distribute. So no one can you know take away the right to sell and then we will have a uh we will be the outsourcers who will you know provide services to these farms but again there also you know the growth will be lower.

[00:05:10]So that is the whole way you should look at the system. So, so Sadib good morning Halia the question over here is uh with the way TCS is looking at in terms of AI being AI ready uh do you think the industry will follow sweet and this is something which will become a kind of model for your Indian enterprise companies >> no so you know always it has happened so the 2A 70,000 people who have been trained in AI for example as they have mentioned so that is very clear so you will see that number going up to almost 80 90% for all the companies whatever employees they have to train them because they the demand is now on that side so they will have to retune their workforce and go send them to training and give them training and you know deploy to the client as and when required so I don't think that there is no other way in my view there is no other path this is the only path and this is the right path so I think the whole industry will shift towards that incrementally every quarter you will see the workforce getting trained in AI for each of them will finally reach 80 85% I have seen in past it has always reached that level and and you will see growth coming back but remember this is a mature industry so lower growth for longer is the theme uh but we will not see volatility like the hardware or the software products which are growing at triple digit they will fall also very sharply in terms of growth >> okay so uh you know it's going to be interesting to see how this space pans out but thank you SadP so much for joining in always a pleasure to speak to you and I think our conversation even on Friday Alex when we spoke to Manish Dangi That's