TCS did not disclose how much of its June quarter total contract value (TCV) of $9.5 billion qualifies as pure AI deals, but chief executive officer (CEO) and managing director (MD) K Krithivasan said very few new deals are now being signed without an AI-based element.

“Traditionally, you can think of it as about a 50:50 mix between renewals and new business. This quarter, however, the share of net-new business is higher as it includes some larger deals. Today almost every deal has an AI component,” Krittivasan told Business Standard in an interaction on Friday after the first quarter (Q1FY27) results of 2026-27. The company’s annual AI revenue grew 13.6 percent to $2.6 billion.

A contract does not qualify as AI revenue merely because an AI coding assistant or automation tool is used in the delivery. Instead, TCS counts AI revenue only when it is central to the customer solution, such as applications that use AI for business processes like credit decision making or technology modernization, Krittivasan explained. His comments are important at a time when investors are trying to assess whether AI spending is translating into meaningful revenue for IT services firms or simply improving internal productivity.

He also reiterated his belief that AI is an opportunity and global systems integrators like TCS will be an integral part of the AI ​​journey of enterprises.