Don’t see hiring going down due to AI, but how we train employees will change: TCS CEO K Krithivasan

Tata Consultancy Services (TCS) CEO and MD K Krithivasan on February 20 said that artificial intelligence and generative AI won’t lead to reduction in hiring or job displacement, it will only change the way the IT services giant is training its employees.

His comments come weeks after Microsoft CEO Satya Nadella, during his India visit, said that job displacement is a given whenever a new technology comes in to play.

Speaking at the Nasscom Technology and Leadership Forum (NTLF) 2024 in Mumbai, Krithivasan said, “Generative AI in most places is being used for experimentations and PoCs (proof of concepts), it is too early call it mainstream or say it is causing reduction in workforce. That’s not true.”

“With every new technology we will see some disruption, eventually we will be able to do more work. Our planning doesn’t go with the assumption that we need to reduce hiring. We don’t see the demand for hiring going down but we will probably change the way we train people. And the kind of people we hire will also change but we don’t see this impacting our headcount,” he added.

He said that it is too early to decouple demand and hiring, despite a declining headcount at TCS amid a tough business environment. “Many of the organisations hired ahead of the curve, and as the demand stabilised we started using our bench,” he said.

Krithivasan said that while generative AI is increasing the productivity of the middle group of employees, for the employees who are trained to gather requirements, do the designs or where critical thinking is required, machines need to be validated and focus on creating superior user experience in needed — talent demand won’t go away very quickly.

“We will continue to require critical thinking, ability of strategic planning and creativity. It won’t go away. That we will probably need more people to be good at,” he said mentioning the kind of skills people need to be trained in.

In an interview with Moneycontrol last month, Krithivasan said that return to office had worked well for the company to maintain its organisational culture. He added that almost 65 percent of its associates are going to the office 3-5 days a week.

Krithivasan at NTLF said collaboration and building camaraderie are very important at TCS. The company’s values are very important.

“Around 30-40 percent of employees joined the last two to three years, if they don’t come to office they won’t learn those values,” he said.

“When we look back at our careers, of course, we got a lot of training and opportunities, but the most important learnings came from seeing how the mentors and seniors behaved in a given situation and learning how they tackled certain client situations. That can only be done by observing regularly,” he said.

Krithivasan added that almost 100 percent of TCS’ customers too are keen to get back their employees to work from the office.