TCS CEO foresees minimal need for call centres as AI adoption grows

Tata Consultancy Services (TCS) CEO K Krithivasan has indicated a potential shift in the future of call centres across Asia, foreseeing a "minimal" need for them within a year. In an interview with The Financial Times, Krithivasan highlighted the accelerating adoption of generative AI among multinational clients, set to transform traditional call centre operations.

Krithivasan explained that while no immediate job cuts have occurred, the widespread adoption of generative AI is expected to revolutionise call centre operations. He envisions chatbots equipped with generative AI analysing customer transaction histories and handling tasks traditionally managed by call centre agents.

The anticipated impact of generative AI on white-collar jobs, including call centre agents and software developers, has raised concerns among policymakers globally, particularly in India. With over five million people employed in India's $48.9 billion IT and business process outsourcing industry, according to Nasscom, the implications are significant.

Krithivasan stressed on the need for workforce training to meet the evolving demands, especially in India, where the demand for tech talent is expected to increase.

While TCS, a major player in technology sector, has a workforce exceeding 600,000 and annual revenues nearing $30 billion, Krithivasan cautioned against overestimating the immediate benefits of generative AI, noting that the true impact would unfold gradually.

TCS CEO highlighted the company's commitment to embracing generative AI, with a pipeline of projects worth $900 million. During the announcement of TCS's Q4 financial results, Krithivasan noted the traction gained in the marketplace since the launch of its AI.Cloud business unit, with over 200 AI engagements secured this year, and an increasing number entering production.