HCLTech Looks to Implement AI Services Across 100 Clients by 2026
HCLTech is advancing its generative AI (GenAI) strategy, aiming to integrate AI services into 100 clients by FY26, the company announced during its Q3 FY25 earnings call. HCLTech said that its AI Force platform has already been adopted by over 20 clients, with plans to scale significantly in the coming years. “We have a plan to infuse AI and generative AI across all the services that we deliver, which is what we call a service transformation program. Our goal is to roll it out to 100 clients by the end of FY26,” HCLTech CEO & Managing Director Vijayakumar C said. Generative AI is becoming increasingly central to HCLTech’s offerings, driven by a sharp decline in costs for large language models (LLMs). “Generative AI is getting more and more real. The cost of using an LLM or conversational model has dropped by over 85% since early 2023, making more use cases viable,” Vijayakumar noted. These advancements are enabling the company to deliver impactful AI solutions at scale. Interestingly, AI-related capabilities are now influencing a significant portion of HCLTech’s deals. In Q3 FY25, the company secured $2.1 billion in total contract value (TCV), with many deals embedding AI solutions. Notable examples include a Fortune 200 technology company selecting AI Force for its ITO program and replacing a long-term incumbent vendor, and a U.S.-based automotive client leveraging Enterprise AI Foundry to enhance aftermarket sales operations with predictive AI models. “We are witnessing an increase in momentum in data, AI, and GenAI opportunities. AI Force deployments and customer interactions in our AI labs are increasing,” said Vijayakumar. HCLTech is also exploring Agentic AI, a concept that empowers employees and clients with intelligent, AI-driven features. “Agentic AI is a big opportunity where we can enable our clients as they empower their employees and clients with more AI-led features,” noted Vijayakumar. Compared to Q1 and Q2, the company’s Q3 results demonstrate a growing integration of AI into its business operations. Sequential revenue growth reached 3.8%, with average contract values (ACV) increasing by 9% quarter-on-quarter and 23% year-on-year. This reflects the company’s successful focus on high-impact use cases for AI. While the company’s AI momentum is strong, its software segment faced a year-on-year revenue decline of 2.1% due to delays in renewals and deal closures. However, Vijayakumar remains optimistic, stating, “Clients are increasing IT investments to drive innovation and efficiency, with GenAI and data at the centre.” The company also announced an agreement with Carrix, a leading independent marine and rail terminal operator, to improve Carrix’s global port operations with HCLTech’s advanced suite of AI of Things (AIoT) technology platform. It will leverage its expertise in automation, AIoT and Vision AI to unify Carrix’s various terminal management solutions. Meanwhile, TCS, in its Q3 FY25 earnings call, reported robust progress in AI adoption. With a total contract value (TCV) of $10.2 billion for the quarter, the company highlighted its focus on AI and agentic AI. “Agentic AI represents the next step of maturity in the exponentially evolving space of AI. It allows us to orchestrate actual transactions inside business value chains using the rapidly improving planning and reasoning capabilities of large language models,” said CEO K Krithivasan. TCS noted significant AI-driven advancements, such as a leading American electronics retailer adopting AI-powered conversational platforms to enhance customer engagement and reduce live agent dependency and an AI-driven drug discovery solution for a global life sciences company using GenAI to design optimised molecules for cancer treatment
In Q3 FY25, the company secured $2.1 billion in total contract value (TCV), with many deals embedding AI solutions.
In Q3 FY25, the company secured $2.1 billion in total contract value (TCV), with many deals embedding AI solutions.
["HCL Technology"]
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["AI", "generative AI", "GenAI", "agentic AI", "Aim", "RAG", "R", "Go", "API", "automation"]
Shalini is a senior tech journalist, exploring the latest advancements in AI. When she's not reporting on the latest innovations, you can find her immersed in her next literary adventure.