Tata Group Executing 100+ GenAI Projects: N Chandrasekaran

Mumbai, May 31 (PTI) Tata group chairman N Chandrasekaran on Friday said companies in the diversified group are executing over 100 generative artificial intelligence projects.

AI can also have negative impacts, Chandrasekaran said, flagging potential job losses and privacy concerns as the areas we need to focus on.

Addressing the group's information technology (IT) services arm TCS' 29th annual general meeting here, Chandrasekaran said all the projects have benefitted the group and that GenAI will have a significant impact on nearly every sector in the country in future.

However, the impact will be felt more in consumer-focused sectors rather than B2B firms, he said, maintaining that both kinds of businesses will adopt and benefit from AI.

"In Tata Group, we are in the midst of executing over 100 GenAI projects. All these projects are demonstrating very tangible business impact in terms of customer experience, productivity and efficiency," he said.

In e-commerce, GenAI is helping Tata Group companies generate product catalogues, deliver conversational shopping experience and provide personalized offers, he said, adding that in manufacturing, GenAI is helping by enabling shop floor workers with troubleshooting.

Tata Group companies are also using GenAI to analyse large documents such as tender documents, and this is reducing sales cycles, Chandrasekaran added.

GenAI will not only improve productivity, but also create impact that has never been seen or imagined, he said, adding AI will empower every employee to perform at a higher level of productivity.

He termed GenAI as a "mixed bag", stating that there can be job losses because of the automation, but was quick to add that more jobs will be created in areas like data management.

"'We need to proactively embrace this so that we are able to reskill people, prepare people for the change," he said.

Chandrasekaran, who led TCS as the CEO before becoming the Tata group chairman, advocated for regulations on AI front, adding that governments all over the world are aware about the same and will introduce certain rules.

The chairman of the salt-to-software grouping said the world has enormous energy requirements but the energy demand estimates do not fully take into account the additional energy that will be required to power development of GenAI and the associated data centre infrastructure.

"The key is to lower the cost of renewable energy while making the shift towards renewables as a source," he added.

He said apart from AI and new energy, supply chain, secure networks and talent are the key trends that are shaping the priorities for businesses.

Post the pandemic, which resulted in supply chain shocks, there was an economic slowdown especially in developed markets, he said, adding that the global economy is expected to grow at 3.2 per cent in 2024 and 2025.

"India in this environment is doing very well and is poised to do very well," he added.