Tata Consultancy Services Chairman, N Chandrasekaran mentioned in an address to the media on Tuesday that artificial intelligence (AI) is an opportunity and not a threat to the technology services industry. As per his comments, the growth rate of revenue from AI operations has been consistent for the past four quarters.

The compound quarterly growth rate (CQGR) was found to be at 22 percent during this period. The AI revenues in the current quarter were found to be close to $2.5 billion year over year basis.

Addressing TCS's 31st Annual General Meeting, he further mentioned that within three years from now, TCS could have the same number of AI agents as it has employees.

Chandrasekaran said the company is doing the "most important work" in its history, as AI is transforming the global technology services industry. According to Chandrasekaran, three-quarters of companies expect technology spending to increase over the next two years due to AI adoption.

He said that despite investor concerns and recent pressure on the IT sector as a whole, the company's fundamentals remain strong; these include stable margins, growing revenue, and a robust deal pipeline.

He explained, "Today, AI exists primarily in the world of software and computers, but it will soon make its way into the real world, such as stores, factories, warehouses, energy networks, vehicles, and supply chains. This will require experts who know how to integrate IT, AI, and physical equipment and infrastructure."

Addressing concerns about job losses due to AI in the IT services industry, he acknowledged that a key question arises: If AI can take over most jobs, what will happen to the sector built to provide those services? However, he said this fear is based on a misunderstanding of how AI will work with enterprise systems.