In a candid discussion at Tata Consultancy Services‘ (TCS) 29th annual general meeting (AGM), Chairman N Chandrasekaran addressed the inevitable changes that artificial intelligence (AI) and generative AI will bring to the workforce. Highlighting both the opportunities and challenges, Chandrasekaran emphasized the need for proactive reskilling efforts to prepare for the impending transformation.
Chandrasekaran pointed out that AI’s capability to automate certain tasks will lead to higher productivity but also result in job losses in areas that are becoming automated. He explained that while AI and generative AI will automate various processes, leading to job displacement, these technologies will also create new opportunities in fields such as data management. The key, he stressed, is to actively embrace these changes and reskill employees to help them adapt to new roles and responsibilities.
TCS is already heavily invested in AI. Chandrasekaran revealed that the Tata Group has over 100 generative AI projects in progress. During the Q4FY24 earnings call, Krithivasan shared that TCS has secured $900 million worth of AI and generative AI projects and has won over 200 engagements in AI this year alone. This underscores TCS’s commitment to staying at the forefront of AI technology and leveraging it to drive business growth and innovation.
K Krithivasan, CEO and current MD and had earlier noted in an interview that AI’s progression might reduce the demand for call center jobs, affecting the industry globally. This sentiment was echoed by Chandrasekaran at the AGM, who said that every sector will feel the impact of generative AI. For consumer industries, the effects will be particularly pronounced as AI enhances personalization and overall consumer experience in sectors such as financial services, healthcare, insurance, and retail. In B2B, real-time visibility, supply chain management, and data analytics will be transformed by AI, leading to both job displacement and the creation of new roles.
Chandrasekaran remains optimistic about the broader economic environment. After years of recession fears and high inflation, he noted that the global macro-outlook is improving with better growth prospects, disinflation, and easing monetary policies on the horizon. However, he also warned of the ongoing risks posed by military conflicts, which continue to disrupt global supply chains.
In the company’s annual report, Chandrasekaran reiterated the transformative potential of AI and generative AI technologies across all sectors and countries. He emphasized that enterprises’ investments in cloud infrastructure and data processing will be pivotal in leveraging AI for unprecedented productivity gains. As AI continues to evolve, TCS is positioning itself at the forefront of this technological shift. Chandrasekaran’s message is clear: while AI will inevitably lead to job displacement in certain sectors, it will also create new opportunities. The critical task ahead is to reskill the workforce to adapt to these changes, ensuring that employees are prepared to embrace the future of work.
Chandrasekaran’s remarks highlight the dual impact of AI on the workforce, underscoring the importance of reskilling and adaptation in the face of technological advancements. As TCS and other companies navigate this new landscape, the focus will be on balancing productivity gains with the creation of new job opportunities, ensuring a smooth transition for employees into the AI-driven future.