TCS Splits AI.Cloud Unit to Sharpen Focus

In a strategic move that underscores the rising centrality of artificial intelligence in global enterprise transformation, Tata Consultancy Services (TCS), India’s largest IT services firm, has restructured its AI.Cloud business unit into two distinct verticals, Artificial Intelligence & Data, and Cloud. The reorganisation signals the company’s aggressive pivot to deepen capabilities and capture emerging opportunities in one of the most transformative technologies of our time.

The decision, announced on May 26, 2025, reflects TCS’s intention to drive sharper focus, accelerate innovation, and scale differentiated offerings by treating AI and Cloud as specialised, standalone growth engines. While AI has been steadily gaining traction in digital roadmaps across industries, the scale and speed of its adoption in the past year have prompted companies like TCS to reevaluate and realign internal structures to stay ahead of the curve.

Betting Big on AI and Data

The newly formed AI & Data business unit will be led by Siva Ganesan, previously head of the combined AI.Cloud vertical. His mandate now includes building a centralised, agile unit that acts as a repository and innovation hub for all AI-driven initiatives across TCS. Recognising the intrinsic link between AI and data, the new structure has brought them under a single umbrella, acknowledging that without robust, clean, and well-managed data, no AI solution can deliver true value.

“The volume and vibrancy of activity in the AI and data space has grown manyfold in the last 12 months,” Ganesan said. “AI is now featuring in every client conversation. It's not just a technology add-on, it's becoming the core of how businesses operate, differentiate, and grow.”

TCS is not just restructuring; it’s re-skilling and retooling. The company is actively hiring specialist AI talent from the external market, while also investing heavily in revamping its internal training frameworks to prepare thousands of existing employees for the AI era. This dual approach ensures that the company not only brings in fresh perspectives and deep AI expertise but also scales delivery capacity organically.

Cloud as a Parallel Growth Engine

The newly carved out Cloud business will be led by Krishna Mohan, who served as Deputy Head of the earlier AI.Cloud unit. The separation acknowledges that while AI and Cloud often intersect, each has unique business imperatives and client needs. Cloud continues to be the backbone of digital transformation, enabling everything from agile infrastructure to application modernisation. By giving it a dedicated focus, TCS aims to deepen its partnerships with hyperscalers, develop industry-specific cloud solutions, and respond faster to evolving client requirements.

A New AI Leadership Line-Up

The move also comes with a renewed leadership structure to drive innovation globally. Ashok Krish has been named the Global Head of AI, bringing with him a track record of driving digital and experience transformation programs. Satish Byravan will take charge as the Global Head of Data, a role that will be critical in helping clients get their data landscape AI-ready.

A senior TCS official explained the rationale: “We are seeing massive traction across sectors, financial services, manufacturing, healthcare, retail. But many organisations are not yet data-mature. That’s where we come in, offering not just AI algorithms but the data foundation required to make them work.”

Why the Split Now?

The AI.Cloud unit was originally formed around two years ago, and it consistently delivered growth rates higher than TCS’s average. However, with the scale of demand accelerating, the company felt the need to go a step further, creating hyper-focused units with clear accountability and domain ownership. It’s a strategic unbundling, designed to deliver both speed and scale.

TCS believes this move will help the company “grow exponentially” in AI, which is now moving from proof-of-concept to enterprise-wide implementation. From generative AI applications and intelligent automation to data-led business insights, the spectrum of use cases is widening rapidly.

Industry analysts have welcomed the decision, noting that such organisational agility is key to staying competitive. With global IT services peers also investing heavily in AI, the race is now about who can deliver contextualised AI at scale, faster and more effectively.

The Road Ahead

For TCS, the road ahead is clear. With deep client relationships, a growing portfolio of AI solutions, and a renewed internal structure, the company is positioning itself not just as a service provider, but as a transformation partner in the AI age.

In many ways, this reorganisation is a reflection of what the future of tech services might look like, modular, hyper-specialised, and talent-driven. As enterprises increasingly demand intelligent, real-time, and adaptive systems, TCS’s strategic shift could well mark the beginning of a new chapter in Indian IT’s AI story.