TCS Sees Future Workforce Split Between Employees and AI Agents

India’s largest IT services company, Tata Consultancy Services (TCS), expects hiring across the technology sector to slow as artificial intelligence becomes a larger part of everyday operations.

Speaking at the company’s annual general meeting, Chairman N. Chandrasekaran said the industry is moving toward a future where AI agents work alongside human employees at scale. He noted that if TCS has around half a million employees, it could eventually have a similar number of AI agents supporting its workforce.

Chandrasekaran clarified that TCS is not planning workforce reductions, but future hiring levels are expected to be lower as automation takes over some routine tasks. He added that the transition will also create new job opportunities as businesses adapt to AI-driven operating models.

The comments come as India’s technology sector faces growing questions about how AI will affect its traditionally people-intensive business model. Hiring activity has already slowed across the industry amid weaker client demand and broader global uncertainty.

According to Chandrasekaran, some work currently performed by employees will increasingly be handled by AI agents, making collaboration between people and AI systems a key part of the industry’s future.

TCS also reported strong momentum in its AI business, with annualized AI-related revenue surpassing $2.3 billion in the quarter ended March 31. The company expects AI to become a component of all its revenue streams before the end of the decade.