TCS Expands AI Office Setups with Contracts Worth $10-$30 Million During the company's Q2 earnings call, Krithivasan explained that while many generative AI engagements tend to be smaller, larger and long-term projects offer greater value
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Tata Consultancy Services (TCS) is rapidly expanding its presence in artificial intelligence (AI) services, securing contracts ranging from USD 10 million to USD 30 million for setting up AI offices for clients, according to CEO and Managing Director K Krithivasan. During the company's Q2 earnings call, Krithivasan explained that while many generative AI (GenAI) engagements tend to be smaller, larger and long-term projects offer greater value.
He highlighted a recent example where TCS established an AI office to manage overall architecture, implement guardrails, ensure regulatory compliance, and oversee the evaluation and development of proof of concepts (POCs). Krithivasan noted that such projects, due to their longer duration, tend to have higher deal values.
"These AI offices not only create the technical infrastructure but also ensure frameworks and guardrails are in place to support large-scale AI adoption," Krithivasan said, adding that the value of these deals varies depending on the project's length and the size of the client organization.
In the recent quarter, TCS reported more than 600 AI and GenAI engagements, with 86 of them already in production. The company's AI pipeline grew from USD 900 million in the June quarter to USD 1.5 billion by the end of Q2, doubling every quarter according to Krithivasan.
TCS also noted that despite some reductions in discretionary spending, clients continue to invest in AI to achieve improved outcomes. The company is helping clients integrate AI across their entire operations, moving beyond isolated use cases to AI-driven transformations at scale.
In its earnings statement, TCS emphasized its commitment to building interdisciplinary AI offices and Centers of Excellence (CoEs) to prioritize and implement AI strategies across enterprises, signaling the increasing importance of AI in driving business innovation and efficiency.
