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TCS Doubles Gen AI Pipeline as 2nd Quarter Concludes
TCS has 600 AI and Gen-AI engagements, with its Gen-AI pipeline growing from $900M to $1.5B in the quarter ending in June.

By Kumar Harshit

on October 15, 2024

India’s IT major Tata Consultancy Services (TCS) is actively leveraging the increasing demands of Gen AI in business operations by setting up AI offices for its clients. 

What’s an AI office- Large Projects? 
K Krithivasan, CEO & MD, noted at the Q2 earnings call that Gen-AI projects are relatively smaller but, they also get some large projects - referring to AI Offices.  An AI office is a program that checks the overall architecture, fills the guardrails, ensures the risks and regulatory frameworks, and reviews as well as analyses all potential Proof of Concepts (POCs) along with other related works.   
 
What’s the Setup Cost?
The cost depends upon basically 2 things namely, 

  1. Size of the Organisation 
  2. Tenure of the Project

Usually, it takes around $10 Million-$30 Million to set up such a thing. While doing a single project or one project can’t be that beneficial such projects being a long-tenured project can yield benefits in the long run. 

What’s TCS’ Score? 
TCS has around 600 AI and Gen-AI engagements including successful deployments and others. Nearly 86 of these went into production in the recently concluded quarter. During the call, Mr Krithivasan said the AI and Gen-AI pipeline was doubling every year, without giving any number.  

Previous Reports 
TCs had previously reported handling around 270 AI & Gen-AI engagements. Its Gen AI pipeline had grown from $900 Million to 1.5 Billion in the quarter ending in June. As per previous reports, TCS aims to build a comprehensive framework combining AI and AI skills among its employees encompassing recruitment, deployment & development. 

Road Ahead  
A report by EY India states that Gen-AI could add about $1.2-$1.5 Trillion to India’s GDP over the next five to seven years. TCS seems to have read the nerve well as it continues to invest heavily in AI training of its employees through establishing AI labs that offer environments and simulations to learn from real-time challenges. 

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