TCS forms new AI and services transformation unit, Amit Kapur to lead

TCS has created a new AI and services transformation unit under Amit Kapur, consolidating its AI strategy and accelerating innovation, client engagement, and digital transformation

Tata Consultancy Services (TCS), the country’s largest IT services firm, has set up a new artificial intelligence (AI) and services transformation unit, underscoring the growing importance of AI in its strategy. 

The unit will be headed globally by Amit Kapur, a TCS veteran who currently leads the company’s UK and Ireland business. Effective September 1, he will take charge as chief AI and services transformation officer, reporting directly to Aarthi Subramanian, executive director, president and chief operating officer of TCS. 

The company made the announcement in an internal email to employees, which Business Standard has reviewed. 

The move comes nearly a month after TCS’ announcement that it would lay off about 2 per cent of its global workforce of 613,069 this financial year in its bid to become a more agile organisation in an era of AI-led business transformation. 

The restructuring consolidates TCS’ AI initiatives, including the AI & data unit carved out in Q4FY25, into a single entity aimed at driving innovation, simplifying client engagement, and accelerating digital transformation. 

“We will also reimagine our investments in our TCS Pace Ports worldwide to bring real-world experiences and possibilities of AI closer to our customers,” Subramanian said in the email. 

The new unit will integrate all of TCS’ existing AI teams and capabilities, and work closely with its horizontal service units and industry business groups, to scale impact and enable benefit realisation at client level. 

“This will include reinvigorating out service propositions, deepening our AI domain solutions, orchestrating new partnership ecosystems, and accelerating rapid innovation in delivery of AI-powered integrated technology services across operations, engineering and modernisation,” said the email. 

Peter Bendor-Samuel, founder and executive chairman of Everest Group, described the changes as very encouraging, particularly as AI is disrupting the tech services industry. 

“To date, TCS has been cautious in its AI approach and strategy and has focused more on its industry leading low-cost model, and has been left behind by its more aggressive competitors, such as Accenture and Cognizant. This announcement indicates that much more investment and senior management focus is now being given to the AI transformation challenge,” he replied in an email to the changes made by TCS. 

He added that TCS was now taking concrete steps to ensure it is not left behind in this disruption and will use AI aggressively across its businesses. “The appointment of Amit Kapur, a senior and well respected executive underscores the seriousness that TCS is viewing the AI challenge,” he said. 

In Q4FY25, the company announced the split of its AI.Cloud unit into two independent businesses focused on AI and data, and cloud.