Tata Consultancy Services (TCS) has disclosed that its annualised revenue from artificial intelligence (AI) has reached approximately $1.5 billion, marking a 16.3 per cent sequential growth, according to CEO K Krithivasan. This is the first time India’s largest IT services company has shared a specific AI revenue metric, reflecting growing investor interest in understanding the return on investment as enterprises ramp up spending on AI-driven technologies.
As of March this year, TCS reported total revenue of $30.2 billion, underscoring that while AI currently represents a relatively small share of overall revenue, it is emerging as a fast growing and strategically important business segment for the company.
Indian IT services firms, including TCS, have consistently highlighted that AI is now embedded in nearly every client engagement. From large transformation projects to routine contract renewals, AI-led solutions are increasingly being integrated to drive efficiency, productivity and cost optimisation for global clients. Industry executives have maintained that AI is no longer a standalone offering but a core component of digital and cloud-led deals.
However, despite widespread adoption, IT companies have so far provided limited financial visibility into the direct revenue contribution from AI. TCS’s disclosure is seen as a key step toward greater transparency at a time when investors are closely tracking monetisation and profitability of AI investments across the sector.
The company has been investing steadily in AI capabilities, including generative AI platforms, industry specific use cases and workforce upskilling, to support clients across banking, retail, manufacturing and other verticals. Management has indicated that AI-led demand is expected to scale further as enterprises move from pilot projects to full scale deployments.
With AI becoming central to enterprise technology strategies, TCS’s $1.5 billion annualised AI revenue highlights the growing commercial impact of artificial intelligence within India’s IT services industry, even as companies continue to refine pricing models and measure long term returns.
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