TCS is gearing up to significantly ramp up its focus and investment in automotive research and development (R&D) and cutting-edge artificial intelligence (AI) technologies, including generative AI. This strategic push is part of TCS’s broader aim to enhance its engineering and R&D capabilities, as outlined by Sreenivasa Chakravarti, the Vice President of IoT and Digital Engineering at TCS.
Chakravarti revealed that TCS is heavily investing in its automotive labs, with a particular emphasis on developing technologies for connected, autonomous, and electric vehicles. This investment aligns with the company’s broader strategy to advance its expertise in AI and generative AI. “We are making substantial investments in automotive labs, focusing on the development of connected, autonomous, and electric vehicles.
In addition to this, we are expanding our capabilities in AI and generative AI to ensure that these advanced technologies play a crucial role in our growth within the engineering, research, and development (ER&D) sector,” Chakravarti explained. In the fiscal year 2024, TCS boosted its spending on R&D and innovation by 10% compared to the previous year, reaching a total of ₹2,751 crore.
The company is currently navigating four major trends in the ER&D landscape. At the forefront is the push towards achieving net-zero carbon emissions. “Nearly every company today has declared its commitment to achieving net-zero emissions by a specified timeline,” Chakravarti noted. This focus underscores the need for sustainable product designs and manufacturing processes that minimize energy consumption and reduce carbon footprints.
The second key trend is the transition towards software-driven products. These products are designed to offer enhanced functionalities such as remote control and autonomous features through over-the-air updates, reflecting a significant shift in how technology is integrated into products.
The third trend involves digital transformation, particularly through the adoption of digital twins. Digital twins enable the virtual simulation of products, which enhances efficiency and fosters innovation by allowing for more precise modeling and testing.
Lastly, the integration of AI and generative AI is becoming increasingly crucial. These technologies are not only transforming traditional R&D methodologies but are also setting new standards for rapid and innovative product development. “AI and generative AI are critical in this transformation, setting new benchmarks for how quickly and innovatively products can be developed,” Chakravarti added.
However, the ER&D sector faces notable challenges, particularly in talent acquisition. The rapid pace of technological advancements requires a highly skilled workforce that can swiftly adapt to new tools and innovations. “The speed of technological evolution is accelerating rapidly… there is a noticeable talent shortage, and the academic system needs to adapt to this evolving landscape,” Chakravarti said.
Despite the hurdles, such as recent policy changes in Germany affecting the automotive sector, Chakravarti remains optimistic. “These are large-scale enterprises, and if the market trends favor a particular technology, these challenges are unlikely to become long-term obstacles,” he stated.
Furthermore, while the integration of AI and generative AI into engineering processes is progressing, it is occurring at a more gradual pace than anticipated. “This is a new technology. Initially, there is a need to train individuals to handle it effectively… it will take time for people to develop the necessary expertise and strategic approach to fully embrace it,” Chakravarti concluded.
Tata Consultancy Services (TCS) is a global leader in IT services, consulting, and business solutions. A part of the Tata Group, TCS excels in delivering innovative technology solutions across various industries, including automotive, banking, and healthcare. Renowned for its expertise in digital transformation and software engineering, TCS drives growth and efficiency for clients worldwide.
