How AI Might Change Work — Why TCS’s CEO Says Jobs Won’t Disappear
Artificial intelligence (AI) is transforming the global workplace at a pace few industries have ever seen. The technology has sparked both excitement about new opportunities and anxiety about job losses. At the centre of this debate is one of India’s oldest and largest IT organisations, Tata Consultancy Services (TCS), whose chief executive has publicly challenged the idea that AI will lead to widespread layoffs.
Speaking in early 2026, TCS CEO K. Krithivasan argued that, rather than eliminating work, AI will expand the scope of tasks and demand for services — increasing opportunities rather than shrinking them. His comments come amid broader industry discussions about automation, productivity and the future of employment in technology-intensive sectors.
This article explains what the issue is, why it matters, how it developed, who is affected, the impacts on society and the economy, and what might happen next.
What the Debate Is About
In many industries — from manufacturing to customer service to software development — AI tools are being used to automate tasks that humans once performed. This ranges from conversational AI chatbots handling customer queries to advanced generative models writing code or drafting documents.
Some analysts, business leaders and technologists warn this could lead to job displacement — especially for routine tasks that can be easily automated by machines. Tech companies and research organisations have speculated that AI might displace even white-collar roles if machines can replicate the cognitive work typically done by humans.
Against this backdrop, Krithivasan’s statement — that there is “no need to panic” about AI causing job cuts — represents a notable industry leadership stance. His view is that AI will increase workload and create new kinds of roles, even as it changes how work gets done.
Why This Debate Exists
Automation, Productivity and Economic Pressures
Technology has long reshaped workplaces. The Industrial Revolution replaced animal and human muscle power with machines. More recently, information technology and outsourcing changed how services are delivered globally. AI can now automate not only physical tasks but cognitive ones — tasks involving language, patterns and decision-making.
This capacity has triggered fears that AI could eliminate jobs faster than new ones can be created — pressuring governments, companies and workers to rethink labour markets.
Changing Billing Shapes in IT Services
Another factor specific to the IT services industry is how revenue is generated. Traditional IT outsourcing business models bill clients based on labour hours delivered. If AI makes teams more productive — doing the same work faster — some worry firms may need fewer people, potentially leading to layoffs.
Krithivasan acknowledges this structural shift but believes it signals evolution rather than elimination of work. He phrases this shift as a move towards outcome-based pricing — where clients pay for results, not hours — arguing that this model can coincide with growing demand even as efficiency rises.
How It Developed: Industry Context and TCS’s Position
The Growing Role of AI in Business
Over the past decade, AI has become integral to enterprise digital strategies. Companies deploy machine learning models for data analysis, process automation, customer insights and product development. With each advance in AI capability — such as generative models that can create text, images and code — the technology’s potential footprint in business grows.
TCS’s Historical Role and Recent Moves
Tata Consultancy Services, founded in 1968, is one of India’s largest employers in the technology sector and a leading provider of IT services to global clients. It has been expanding its portfolio into AI-based services and infrastructure, including partnerships with hardware and software vendors, and investing in modern data and compute platforms to support AI workloads.
Earlier in 2025, TCS announced plans to reduce its workforce by about 2% — amounting to roughly 12,000 positions — citing skill mismatches rather than automation as a driving factor. This move was presented as part of a broader strategic transformation rather than direct AI-caused job elimination.
A Broader Industry Dialogue
Across the technology sector, leaders take differing public positions. Some see AI as a net job creator that will boost productivity and encourage new industries. Others highlight the potential for job displacement, especially without effective reskilling and education systems. Recent industry events, including the India AI Impact Summit, have emphasised both challenges and opportunities, with many executives urging workers to adopt new skills.
Who Is Affected — and How
Employees in Technology and Services
In the short term, technological disruption affects different cohorts in varied ways:
- Routine job holders: Those engaged in repeatable or well-defined tasks are more vulnerable to replacement by automation.
- Mid to senior “legacy skill” professionals: Some roles become less relevant without reskilling — as seen in TCS’s reported workforce adjustments.
- AI-savvy talent: Professionals with expertise in AI, data science and digital transformation are in growing demand.
Businesses and Clients
Companies that adopt AI aim to serve customers more efficiently and innovate faster. This can enhance competitiveness but also necessitates investment in new tools, data infrastructure and staff training.
For service providers like TCS, AI adoption is altering contract structures and client expectations. The transition to outcome-based pricing reflects a broader industry alignment with performance rather than hours billed.
Broader Economic Players
National economies and labour markets feel these changes too. Countries with strong technology sectors — such as India — are grappling with balancing innovation with employment outcomes. Policy interventions, upskilling initiatives and education reforms become central to this equilibrium.
The Real-World Impact
On Individuals
The rise of AI is prompting many workers to reassess their careers. Those in roles susceptible to automation face pressure to upskill or transition to new fields. At the same time, new opportunities arise in data analytics, AI implementation, user experience design and ethical oversight of automated systems.
In communities where technology jobs are key to economic stability, these shifts can create stress but also stimulus for training programmes, educational partnerships and job creation in adjacent fields.
On Companies
Businesses that leverage AI can achieve cost savings and service improvements. For firms like TCS, AI drives productivity and opens new markets. However, restructuring workforces and retraining employees can also be costly and complex.
On Society and the Economy
AI’s impact is not limited to employment. It shapes competitiveness, national economic growth, labour policy and global trade dynamics. Societies must consider how to support displaced workers, encourage entrepreneurship in new sectors and ensure equitable access to technological benefits.
What Could Happen Next
Scenario 1: AI Augments Work and Expands Demand
This is the scenario most closely aligned with TCS CEO Krithivasan’s outlook. In this view:
- AI becomes a tool that automates mundane tasks.
- Workers focus on complex, creative, strategic or interpersonal functions.
- New roles emerge in AI governance, safety, training, specialised services, and infrastructure.
- Outcome-based pricing and service models become common in IT contracting.
This scenario depends on robust reskilling and education initiatives that help workers transition into new roles.
Scenario 2: AI Displaces Jobs Faster Than New Ones Are Created
Some analysts see a more disruptive trajectory:
- Rapid automation reduces demand for certain skill sets.
- Economic displacement occurs in multiple sectors simultaneously.
- Long-term unemployment or underemployment rises if new job creation lags behind automation.
This outcome could be mitigated through active labour market policies, universal basic income discussions, and public–private partnerships focused on workforce development.
Scenario 3: A Mixed Landscape
Most experts now believe the future will not be strictly binary. Instead:
- Some roles will vanish.
- Some will be transformed.
- New ones will appear — but not necessarily in the same locations or industries.
Success in this middle pathway depends on how governments, educators, corporations and workers respond collaboratively.
Conclusion: A Nuanced Future
The declaration by TCS’s CEO that AI “will expand work, not cut jobs” reflects one influential perspective in the broader debate about automation and employment. It underscores optimism that technology can enhance productivity and create fresh opportunities — especially in services, infrastructure and specialised AI functions.
However, AI’s impact will not be uniform or automatic. Outcomes depend on policy choices, economic conditions, reskilling efforts and how quickly organisations adopt new business models. For workers and societies alike, responding proactively — with education, training, and inclusive planning — will be crucial in shaping a future where technology augments rather than replaces human potential.
Table: AI and the Workforce — Possible Outcomes
| Outcome Pathway | Key Features | Risks & Challenges | Opportunities |
|---|---|---|---|
| AI expands work | Productivity gains are reinvested; new roles created | Requires reskilling; new skill gaps | Higher value services; enhanced competitiveness |
| AI displaces jobs | Automation reduces demand for specific roles | Unemployment, economic displacement | Potential cost efficiencies for businesses |
| Mixed transition | Some jobs lost; new jobs emerge | Uneven regional/sectoral impact | Innovation, new sectors, long-term growth |