July 1, 2025

TCS CEO Warns AI Could Transform Call Centers Within a Year, Leading to Minimal Need for Agents

The Entrepreneur Bytes Team April 25, 2024 296

The head of Tata Consultancy Services (TCS), one of India’s leading IT companies, has issued a cautionary prediction regarding the impact of artificial intelligence (AI) on call centers. K Krithivasan, TCS’s chief executive, stated that AI advancements could result in a “minimal” requirement for call centers within approximately a year.

TCS CEO Warns AI Could Transform Call Centers Within a Year, Leading to Minimal Need for Agents
TCS CEO Warns AI Could Transform Call Centers Within a Year, Leading to Minimal Need for Agents

The head of Tata Consultancy Services (TCS), one of India’s leading IT companies, has issued a cautionary prediction regarding the impact of artificial intelligence (AI) on call centers. K Krithivasan, TCS’s chief executive, stated that AI advancements could result in a “minimal” requirement for call centers within approximately a year.

Krithivasan’s remarks, featured in the Financial Times, highlighted the evolving landscape of customer support centers due to AI adoption. While acknowledging that there have been no job reductions thus far, he emphasized that the widespread adoption of AI will fundamentally change the nature of call centers, which have historically been a significant source of employment in countries like India.

“We are in a situation where the technology should be able to predict a call coming and then proactively address the customer’s pain point,” Krithivasan explained. He noted that chatbots equipped with AI capabilities would soon be capable of analyzing customer transaction histories, effectively handling most tasks traditionally managed by call center agents.

Despite the anticipated shift, Krithivasan emphasized that this transformation is not immediate, estimating a timeline of “maybe a year or so down the line.” TCS, with its extensive workforce of over 600,000 employees and substantial annual revenues nearing $46 billion, has reported a doubling of its pipeline for AI projects, reaching a value of $900 million by March.

Krithivasan expressed optimism regarding the growth of AI projects, expecting the pipeline to “increase significantly” and continue doubling over subsequent quarters. However, he cautioned against overestimating the immediate benefits of AI, highlighting that its impact would be more apparent in the long term rather than expecting immediate results within the next few quarters.

Regarding TCS’s hiring practices and the potential impact of AI on employment, Krithivasan suggested that by diversifying recruitment efforts to include more colleges, TCS could continue to provide employment opportunities while addressing the global industry’s growing demand for technology talent.

Sources By Agencies

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