TCS Begins Work on AI Agents, Drug Discovery for Clients
In its latest Q3 FY25 earnings call, TCS reported that its clients are actively investing in generative AI and agentic AI while building robust data foundations. “We actively engaged with clients on AI/Gen AI-led software engineering, legacy modernisation and AI Ops. We saw an increase in successful production deployment of AI/Gen AI engagements leading to greater business certainty and confidence for our clients,” read the press release. K Krithivasan, CEO and MD, said that the momentum of generative AI is increasing. Hence, the company is not revealing the specific revenues, citing they are difficult to measure. He said the company is also checking how the teams can use generative AI within the value chains or how it can completely change them while also improving productivity. “Last year, we were talking about fine-tuning, then people talked about RAG, now agentic AI is becoming more and more common with the capabilities of these LLMs,” Krithivasan said, adding that adoption is increasing among clients. He said that TCS is working on a project with a client for drug discovery where the customer was able to identify 1,300 molecules and further filter them to 12 molecules. “Work is becoming more complex, more rewarding. So overall, significant growth and a lot of participation with our customers.” TCS has also launched its TCS 5A Framework for Responsible AI in partnership with AWS to address and mitigate AI risks holistically. TCS claims that it is the first of its kind in the industry. Like earlier, TCS has yet again refused to reveal revenue specific to generative AI projects. “When it comes to the deals, most of the deals have generative AI aspects in them,” said Krithivasan. The company reported a consolidated net profit of $1.46 billion for Q3 FY25, marking a 12% increase year-on-year. Revenue for the quarter rose 6% to $7.54 billion, up from $7.28 in Q3 FY24. Sequentially, net profit grew by 4%. Krithivasan expressed optimism about the company’s strong Total Contract Value (TCV) performance of $10.2 billion, compared to $8.6 billion in the previous quarter and $8.1 billion a year ago. He emphasised the role of AI and upskilling in generative AI and said, “Our continuing investments in upskilling, AI/GenAI Innovations and partnerships sets us up to capture the promising opportunities ahead.” Milind Lakkad, chief HR officer, shared updates on workforce initiatives, including over 25,000 promotions in Q3, bringing the total for the year to over 110,000. Campus hiring is on track, with plans to onboard more recruits next year. “We also want to get on track to get our campus hiring on track of 40,000 people this year,” said Lakkad. As of December 31, 2024, TCS had filed 8,549 patents, including 195 applications during the quarter. The company was granted 4,585 patents, with 216 awarded in the same period. In the last quarter Q2 FY25, TCS reported that over 600 AI and generative AI engagements have either been deployed successfully in production or are in various phases of development. The company said it is seeing continued momentum with Gen AI adoption and the technology maturing at a rapid pace. TCS reported 270 AI projects across its global operations in its Q4 FY24 and stated that its AI pipeline doubled to $1.5 billion in the last quarter. However, the company refrained from releasing financial projections related to these initiatives. After Accenture reported record generative AI bookings of $1.2 billion in its latest earnings call Q1 FY25, the expectations from Indian IT companies were the same. TCS’ promise of these generative AI deals shows the momentum is definitely upwards. TCS is the first major Indian IT firm to release Q3 earnings, with peers HCLTech, Wipro, and Infosys expected to announce their results next week.
TCS reported a consolidated net profit of $1.46 billion for Q3 FY25, marking a 12% increase compared to $1.33 in the same period last year.
TCS is working on a project with a client for drug discovery where the customer was able to identify 1,300 molecules.
["AI Agents", "TCS"]
["Go", "API", "GenAI", "agentic AI", "AWS", "AI", "R", "AI Agents", "RAG", "Aim", "generative AI", "TCS"]
["AI", "generative AI", "GenAI", "agentic AI", "Aim", "RAG", "AWS", "R", "Go", "API"]
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.