TCS targets $1.5 Billion in AI projects as demand surges

12 Jul 2024 , 02:44 PM

Tata Consultancy Services (TCS), India’s leading software exporter, has $1.5 billion in AI and Generative AI projects lined up for the first quarter ending June 30, 2024. CEO and MD K Krithivasan revealed this, nearing Accenture’s $2 billion in cumulative Gen AI revenue.

In the previous quarter ending March 31, 2024, TCS had $900 million worth of AI and Gen AI projects in its pipeline.

Speaking at TCS’ Q1 earnings conference on July 11, Krithivasan highlighted, “We are actively managing 270 AI projects across TCS. Our Gen AI pipeline has doubled to $1.5 billion this quarter, driven by ongoing investments in research and innovation.”

“Our WisdomNext platform, facilitating enterprise-wide adoption of Gen AI, has received strong client interest,” he added. Krithivasan noted that while many engagements are short-term, some projects are expanding as use cases evolve. TCS saw an increase in projects moving to production and filed 154 patents in Q1, with 277 patents granted.

Last month, Accenture reported over $900 million in new Gen AI bookings for the quarter, bringing their fiscal year total to $2 billion.

At the Nasscom Technology and Leadership Forum 2024, Krithivasan remarked, “Generative AI is still in the experimentation phase. It’s premature to deem it mainstream or a cause of workforce reduction.”

At the time of writing on July 12, 2024 at 2:42 pm shares of Tata Consultancy Services (TCS) is currently trading at ₹4197 which is a 6.95% gain than the previous close.