AI for Growth: Dutch Businesses Struggle to Move Beyond Automation, Says TCS CEO

Tata Consultancy Services (TCS), a global IT services giant, is actively engaging with major Dutch corporations to demonstrate how Artificial Intelligence can drive business growth beyond basic automation. The company's innovation center in Amsterdam showcases AI possibilities through interactive displays and simulated business environments.

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Almost 95 percent of companies use AI or experiment with it, but many of them have difficulty converting it for business growth.

Krithi Krithivasan, TCS CEO, observed that while nearly 95% of companies are experimenting with AI, many find it challenging to translate these efforts into tangible business expansion. He noted that current AI adoption often focuses on automating existing tasks, which primarily leads to cost reductions rather than transformative changes. TCS aims to facilitate deeper discussions between business leaders and their IT departments to explore more strategic AI applications.

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Automation can reduce costs, but does not lead to major changes.

With over half a million employees and nearly $30 billion in revenue, TCS operates globally, with significant market share in the US and Europe. However, like many competitors such as Accenture and Capgemini, TCS has seen its stock price drop by over 30% this year. This market trend, dubbed the 'SaaS-Pocalypse,' reflects investor fears that AI could render existing software-as-a-service models obsolete. Krithivasan acknowledged the current investor caution but expressed confidence in the long-term value of companies like TCS.

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Of course, we see that there are investors who may want to stay away from the software segment for a while.

He emphasized that TCS is uniquely positioned to assist clients who may lack the necessary data infrastructure or AI application strategies. TCS can provide training, help select appropriate language models, and develop AI solutions tailored for growth. Despite market volatility, the company remains focused on enabling clients to harness AI for substantial business development, leveraging its extensive data capabilities and expertise.

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But I trust that this panic will subside in the long term.