Rise of automation promises a future of ‘dark factories', says TCS' Chandrasekaran
IT and business services were rapidly moving toward autonomous operations, and the rise of autonomous robots and AI agents promised a future of 'dark factories' and AI-assisted enterprise functions, said N. Chandrasekaran, chairman, Tata Consultancy Services on Tuesday (May 27, 2025).
He said, 'The path is clear: IT and business services are moving toward autonomous operations. The rise of autonomous robots and AI agents promises a future of 'dark factories' and AI-assisted enterprise functions,'' he said in TCS Annual Report FY2025 released on Tuesday.
The single most transformative force in 2024 was Generative AI, which achieved near-human reasoning capabilities, he said in his letter to shareholders. ''GenAI is not just another tech cycle—it is a civilisational shift. TCS is uniquely positioned to lead this transition, with its domain expertise, deep client relationships, and contextual knowledge,'' he assured them.
He further said, software development was being redefined by AI-led modernisation, as legacy code was being transformed rapidly. Agentic AI was being embedded deeply into enterprise systems. Looking ahead, TCS has charted out four distinct progressions:
1. Establish a large pool of AI agents working alongside our human workforce, 2. Deliver solutions through a human+AI model, 3. Consciously invest in AI data centers and cloud infrastructure and 4. Forge industry-best partnerships with hardware providers, solution innovators, and startups.
On geopolitical landscape
According to Mr. Chandrasekaran, who is also the chairman of Tata Sons and Tata Group, the evolving geopolitical landscape and the emergence of a multipolar world are now reshaping how global businesses operate.
''We are in the midst of an irreversible transition towards green energy; businesses must adapt by developing market-appropriate solutions,'' he said adding TCS has developed an AI-powered clever energy platform that has been helping clients optimise energy consumption, reducing emissions and energy costs.
He further said, the financial year 2025 was a year of profound global disruption. 'In the face of this turbulence, TCS demonstrated exceptional resilience.''
TCS's financial performance was robust, Mr. Chandrasekaran said, with FY 2025 revenue of over $30 billion and an industry-leading operating margin of 24.3%.
On Gen AI and AI
Significant innovation was happening in the AI ecosystem across infrastructure, data platforms, models, and AI native business applications, said TCS, CEO and MD, K. Krithivasan in the report.
''These innovations are forcing companies to invest in technology modernisation and rapidly adopt AI to meet evolving customer expectations. Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI,'' he said.
Mr. Krithivasan's salary saw a 4.6% increase in FY25 to ₹26.52 crore, as per the report.
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