TCS expects as many AI agents as employees in three years

At its annual general meeting, Tata Consultancy Services said it expects to operate as many AI agents as human employees within three years and will reduce the pace of hiring as automated systems take on routine work. The company stated it does not plan mass layoffs.

Chairman N. Chandrasekaran outlined a large-scale buildout of AI agents to support client projects and internal operations. He predicted, “I predict that over the next 3 years, TCS will have as many AI agents as human employees,” and added that the work undertaken in this period “will be the most consequential work this company has ever done.” He noted that while some roles will be automated, new roles will appear as teams redesign workflows around AI.

TCS is India’s largest IT firm by market value and headcount. India’s software and services industry is estimated at about $315 billion. The company cut more than 12,000 jobs in July and reported a net headcount reduction of over 23,000 in the fiscal year ended March 2026.

Other industries are testing similar models. Some finance firms are deploying AI bots to scan markets, analyse securities and recommend trades while leaving final trading decisions to human managers. Employment figures show AI has been cited as a reason for 87,714 job losses so far in 2026, representing about 22% of layoffs this year; that number exceeds the 54,836 roles attributed to AI in 2025. Overall, more than 117,000 tech employees have been laid off across 175 companies in 2026 to date.

Chandrasekaran said TCS will focus on hiring less rather than cutting staff, and on retraining employees for roles created by AI adoption. He described the change as a structural shift in how work is organised for clients and within the company.

Industry analysts said TCS’s programme will be an early large-scale test of integrating automated agents with human teams. The results are expected to affect hiring and operational models across India’s technology services sector, which remains a major private employer and is sensitive to changes in global demand and geopolitical conditions.