BENGALURU - Tata Consultancy Services, India's largest software exporter, expects a seismic shift in its workforce. Chairman N Chandrasekaran told the company's annual general meeting that he foresees a day when TCS will employ an equal number of AI agents and human employees.
"If the company has half a million employees, the day is not far when the company will have half a million AI agents," Chandrasekaran said. He emphasized that employees and AI agents will work side by side, marking the future of the industry.
This projection signals a slowdown in hiring, not just at TCS but across India's $315-billion IT sector. Chandrasekaran made clear the Mumbai-based firm has no plans to downsize current staff, but will hire fewer people going forward. The company already cut more than 12,000 jobs last July, and net headcount fell by over 23,000 in the fiscal year ending March 2026.
Investor concerns have mounted that AI could upend the traditional, labor-intensive business model that made India's IT sector one of the country's largest private employers. TCS shares have plunged more than 32% so far in 2026, outpacing the 25% decline in the Nifty IT index.
Chandrasekaran acknowledged that increased AI usage will curb hiring as tasks become automated, but he also predicted new roles and opportunities will emerge as companies adapt to AI-driven operations. His comments carry extra weight since TCS is India's largest IT firm by both market capitalization and employee count.
The company's annualized AI revenue has already crossed $2.3 billion as of the quarter ended March 31. Chandrasekaran said that before the end of this decade, 100% of TCS' revenue will involve an AI component.