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TCS CEO Reveals When AI Deflation Will Stop Impacting IT Services
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CNBC TV18•09-10-2026, 09:48
TCS CEO Reveals When AI Deflation Will Stop Impacting IT Services
- •Tata Consultancy Services MD and CEO K Krithivasan stated that nearly 50% of IT services contracts have already experienced AI-led deflation.
- •AI deflation involves falling costs for producing goods and services as automation reduces labor hours and lower unit prices.
- •Krithivasan expects that new projects leveraging AI for business outcomes will offset revenue deflation much faster than anticipated.
- •TCS reported an AI segment revenue of over $3 billion, up from $2.6 billion in June, now contributing over 10% to the company's topline.
- •Following the strong earnings report, shares of TCS traded 4.6% higher at 2172.9 rupees.
Key Questions Answered
According to TCS MD and CEO K Krithivasan, nearly 50% of IT services contracts have already seen AI-led deflation.
TCS reported AI segment revenue of over $3 billion at the end of the September quarter, up from $2.6 billion in June.
TCS shares traded 4.6% higher at ₹2,172.9 following results that were in-line with expectations, with international business growth standing out as a key highlight.
