Companies are investing billions of dollars in artificial intelligence (AI), but the money they spend is only one part of the story. How much revenue is AI generating, and how is it changing the way businesses earn money? This week, figures from TCS, OpenAI and chipmaker TSMC offered a glimpse into the commercial side of the AI boom.
\n\nTata Consultancy Services (TCS) reported an annualised AI revenue run rate of $3.1 billion in the September quarter of FY27, up from $2.6 billion in the previous quarter. AI now accounts for more than 10% of the company’s overall revenue.
\n\nAn annualised revenue run rate estimates how much a company would earn over a year if its current pace of revenue continued. It is not the same as the revenue actually earned during that year.
\n\nFor TCS, however, AI is also changing the economics of existing contracts. Managing Director and CEO K Krithivasan told that nearly 50% of IT services contracts had experienced AI-led deflation. This refers to pressure on prices as AI enables companies to complete certain tasks with less time and effort.
\n\nThe change is not confined to IT services. Enterprise software companies are also revisiting how they charge customers.
Original source: https://www.cnbctv18.com/technology/
