TCS exec: Expect U.S. business to pick up due to AI, see no visa-related issues

Tata Consultancy Services (TCS), India’s largest software services provider, has expressed confidence in the growth of its U.S. business, attributing future momentum to advancements in artificial intelligence (AI). Despite ongoing concerns about U.S. immigration policies and their impact on the IT sector, TCS leadership has indicated that no significant visa-related challenges affecting its operations.

According to TCS CEO K. Krithivasan, AI is becoming a core growth engine for the company, with AI services revenue reaching $1.8 billion in annualized terms as of Q3 FY26. This represents a 17.3% quarter-on-quarter growth and underscores the increasing adoption of AI across TCS’s client base. Krithivasan emphasized that AI is not only enhancing productivity but also delivering value through efficient solutions.

The CEO also addressed concerns about AI’s impact on employment, stating that while AI tools may automate certain tasks, they are expected to reshape roles rather than eliminate jobs. TCS has already begun training over 200,000 employees in advanced AI skills and is integrating AI tools like copilots to improve delivery speed and quality. Krithivasan noted that the company is actively adapting to ensure its workforce remains competitive.

TCS has also taken strategic steps to support its AI ambitions, including the acquisition of Coastal Cloud and investments in data centers to enhance its AI delivery capabilities. These moves are part of a broader effort to position TCS as AI-led, aligning with the growing demand for AI-driven solutions in enterprise environments.

While the company has reduced its headcount by nearly 30,000 in late 2025, Krithivasan clarified that exits were driven by skill mismatches and structural changes rather than AI automation. The company is focusing on reskilling and redeploying talent, particularly in AI and cloud services.

Overall, TCS remains optimistic about its U.S. business, with leadership confident that AI will drive growth and mitigate potential risks associated with visa policies and market dynamics.