New Delhi, July 9 -- Tata Consultancy Services (TCS) said on Thursday its artificial intelligence (AI) business has grown to $2.6 billion, driven by rising demand for AI-led digital transformation projects and a series of large enterprise deals, despite continued macroeconomic uncertainty.
The milestone came as India's largest IT services company reported a $9.5 billion total contract value (TCV) for the June quarter, driven by large AI, cloud modernisation and platform transformation engagements across industries
Among the key wins during the quarter was an $800 million AI-led transformation deal with Swedish industrial bearings manufacturer SKF, alongside multi-million-dollar agreements with ServiceNow and a Europe-based Fortune Global 50 company. The company said these engagements span AI-powered IT operations, software engineering, application modernisation and enterprise platform transformation.
"Q1 reflects continued growth momentum despite geopolitical and macroeconomic headwinds," Chief Executive Officer and Managing Director K Krithivasan said. "As customers accelerate investments in AI, modernisation, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion and expanding ecosystem partnerships position us well to translate opportunity into sustained growth."
The company's AI revenue run rate grew 13.6% sequentially, reflecting increasing adoption of generative AI and agentic AI across enterprise technology environments.
Executive Director and Chief Operating Officer Aarthi Subramanian said TCS secured multiple AI-led transformation deals during the quarter that combine operational optimisation with innovation-led business outcomes.
"The wins validate our approach across AI-led IT operations, accelerated software engineering and modernisation, AI-first process redesign and autonomous global business services," she said, adding that TCS also expanded its AI ecosystem through strategic partnerships with Anthropic and Mistral AI.
The latest numbers reinforce TCS' view that AI is becoming a core driver of enterprise technology spending rather than a standalone experimental investment.
Speaking at the company's annual general meeting in June, Chairman N. Chandrasekaran described AI as the biggest opportunity for the IT services industry, projecting the global IT market to nearly double from $1.6 trillion to $3 trillion over the next five to ten years.
He also said AI agents working alongside employees within TCS could eventually match the company's workforce size, while AI components are expected to influence nearly all of the company's revenue streams by the end of the decade.
The company has increasingly positioned itself around enterprise AI transformation, combining large language models, cloud modernisation, cybersecurity and autonomous operations as clients move beyond proof-of-concept projects toward production-scale deployments.
Published by HT Digital Content Services with permission from TechCircle.