Business
Tata Consultancy Services Consolidates AI Capabilities into New Business Unit

TLDRs;
- TCS creates a new AI and services transformation unit to consolidate capabilities and expand AI-powered client solutions.
- Amit Kapur, a 20-year TCS veteran, will lead the division, starting in September 2025.
- Indian IT firms favor partnerships and restructuring over acquisitions to drive AI growth amid subdued client spending.
- Rising automation and global uncertainty push Indian IT giants to bet heavily on AI-led transformation strategies.
Tata Consultancy Services (TCS), India’s largest IT services provider, has announced the creation of a new business unit dedicated to artificial intelligence (AI) and services transformation.
The strategic move, confirmed in a company memo seen by Reuters, is aimed at consolidating TCS’s existing AI capabilities and expanding its portfolio of AI-based solutions for clients worldwide.
The new division will be led by Amit Kapur, a veteran executive with over two decades at TCS. Kapur, who previously managed the company’s UK and Ireland business, is scheduled to assume leadership of the AI unit in September. His appointment underscores TCS’s preference for leveraging internal expertise rather than external hires to spearhead strategic growth areas.
TCS bets big on AI-led future
The launch of this AI-focused business unit marks a turning point for the Indian IT industry. TCS becomes the first Indian IT firm to establish a fully dedicated AI division, mirroring similar restructuring by a U.S. competitor earlier this year.
Unlike global firms that have leaned heavily on acquisitions to accelerate AI growth, Indian players are taking a more measured route. In 2024 alone, Indian IT companies engaged in about 46 AI-related partnerships with hyperscalers and startups.
Analysts suggest that this collaboration-driven model helps firms like TCS scale AI offerings without the significant financial burden of acquisitions.
Pressure from slowing client spending
TCS’s reorganization also reflects the mounting challenges in the $283 billion Indian outsourcing sector. Global economic uncertainties and tighter client budgets have led to subdued IT spending, with many firms cutting costs and hesitating to expand traditional outsourcing deals.
At the same time, AI threatens to disrupt established business models. Tasks once handled by large pools of IT professionals are increasingly being automated. This has placed added urgency on companies like TCS to reinvent themselves and stay competitive in a rapidly evolving landscape.
Industry analyst Pareekh Jain emphasized that AI transformation is now seen as “the only major lever for growth” amid weak market conditions. For TCS, consolidating AI into a standalone business unit represents not just an opportunity, but a survival strategy.
Leveraging expertise for global impact
By promoting Kapur to lead the initiative, TCS is signaling confidence in homegrown leadership to guide its AI ambitions. His experience in leading large-scale international operations positions him well to oversee the integration of AI into client offerings across multiple geographies.
The timing of the move also aligns with wider industry momentum. Surveys indicate that 93% of Indian corporations plan to increase AI investments in 2025, while nearly 90% have already launched more than 10 AI pilot projects in 2024. By consolidating its capabilities under a single unit, TCS is positioning itself to better capture this growing demand.
While challenges remain, TCS’s new AI business unit represents a decisive step in reshaping its identity from a traditional outsourcing giant to a global technology innovator.
Business
Aha moments, the ‘first ten hours’, and other pro tips from business leaders building AI-ready workforces

As businesses face pressure to bring new AI tools on board, they have the dual challenge of effectively incorporating the technology into their operations and of helping their workforce make the best use of the technology.
Longstanding methods for assessing the skills and performance of an employee, as well as hiring practices, are being upended and re-imagined, according to business leaders who spoke at the Fortune Brainstorm Tech conference on Tuesday in Park City, Utah.
Technical skills, contrary to what you might think, are not paramount in the age of AI. In fact, for many employers, technical skills are becoming less important.
“For the first time this summer on our platform we saw a shift,” said Hayden Brown, CEO of Upwork, an online jobs marketplace for freelancers. In the past, when Upwork asked employers on its platform about the most important skills they were hiring for, the answer invariably involved deep expertise in certain technical areas, Brown said. “For the first time this summer, it’s now soft skills. It’s human skills; it’s things like problem solving, judgement, creativity, taste.”
Jim Rowan, the head of AI at consulting firm Deloitte, which sponsored the Brainstorm discussion, said an employee’s “fluency” should not be an end goal in itself. More important is intellectual curiosity around new tools and technology.
And that’s something that needs to start at the top.
“We’ve done a lot of work with executive teams to make sure the top levels of the organization and the boards are actually familiar with AI,” said Rowan. “That helps because then they can communicate better with their teams and see what they’re doing.”
For Toni Vanwinkle, VP of Digital Employee Experience at Adobe, it’s critical for employees at all levels of an organization to have an “aha moment” with AI technology. And the best way to bring that about is for each employee to get their “first ten hours” in.
“Go play with it,” Vanwinkle says. “Sort your email box, take the notes in your meeting, create a marketing campaign, whatever it is that you do.” Through that initial process of personal exploration, you start to understand the potential of the technology, she says.
The next step, Vanwinkle says, is collaboration, discussions, and experimentation among colleagues within the same departments or functionalities.
“This whole spirit of experiment, learn fast. That twitch muscle can turn into something of value when people talk openly,” Vanwinkle says.
The importance of embracing experimentation, and fostering it as a value within the organization, was echoed by Indeed chief information officer Anthony Moisant.
“I think about the pilots we run, most of them fail. And I’m not embarrassed at all to say that,” Moisant says. It all comes down to what a particular organization is optimizing for, and in the case of Indeed, Moisant says, “what we go for is fast twitch muscle. Can we move faster?”
By encouraging more low stakes experiments with AI, companies can gain valuable insights and experience that employees can leverage quickly when it counts. “The only way to move faster is to take a few bets early on, without real long term strategic ROI,” says Moisant.
Workday Vice President of AI Kathy Pham emphasizes that with new tools like AI, getting a full picture of an employee’s value and performance may take a bit longer than some people are used to. “Part of the measurement is better understanding what the return is and over what period of time,” she said.
Business
AI agents in business create new risks & urgent security needs

Radware has released new research analysing the cybersecurity risks linked to the growing adoption of agentic artificial intelligence (AI) systems in enterprise environments.
The report, titled ‘The Internet of Agents: The Next Threat Surface,’ examines how AI agents driven by large language models (LLMs) are being integrated into business operations. These systems differ from standard chatbots by acting autonomously, executing tasks, and collaborating with other digital agents using protocols such as the Model Context Protocol (MCP) and Agent-to-Agent (A2A).
Expanded attack surface
Organisations are increasingly deploying LLM-powered AI agents into customer service, development, and operational workflows. Unlike traditional software, these agents are capable of reasoning, executing commands, and initiating actions autonomously across enterprise networks.
The report notes that as these agents interact with business systems, they establish complex transitive chains of access to sensitive resources. This can complicate tracking and securing business processes with existing cybersecurity measures. According to Radware, these pathways present “complex pathways into sensitive enterprise resources that are difficult to track or secure with existing defences.”
New protocols and exposures
The adoption of protocols such as MCP and A2A enables enhanced interoperability and scalability for AI agents across different business processes, but this also introduces new risks. The report highlights threats such as prompt injection, tool poisoning, lateral compromise, and malicious handshakes, which take advantage of these emerging protocols.
Prompt injection attacks, in particular, are identified as a growing risk. By embedding covert instructions in content like emails or web pages, attackers can manipulate AI agents to exfiltrate data or initiate unauthorised actions – often without any indication to the end user. The research states: “Adversaries can embed hidden instructions in emails, web pages, or documents. When an AI agent processes that content, it may unwittingly exfiltrate data or trigger unauthorized actions – without the user ever clicking a link or approving a request.”
Lower barriers to cybercrime
The report observes that new “dark AI ecosystems” are emerging, which lower the technical barriers to cybercrime. Black-hat platforms such as XanthoroxAI provide access to offensive AI tools that automate previously manual attacks, including malware creation and phishing campaigns. These tools, offered on a subscription basis, enable less-experienced attackers to develop and deploy exploits more easily.
Radware’s analysis also shows that AI accelerates the weaponisation of new vulnerabilities. The report references research demonstrating that GPT-4 can develop working exploits for recently disclosed vulnerabilities more rapidly than experienced human researchers, reducing the window for IT teams to patch vulnerable systems before attackers strike.
Changing digital landscape
The emergence of the so-called ‘Internet of Agents’ is likened to previous digital shifts, such as the rise of the Internet of Things. In this new ecosystem, autonomous digital actors with memory, reasoning, and action capabilities are increasingly interconnected, resulting in greater operational efficiency but also expanded risk exposure.
Radware’s report argues that organisations must adjust their security models to account for the new roles played by AI agents in the enterprise. With these systems acting as decision-makers, intermediaries, and operational partners, the need for effective governance and security oversight is heightened.
“We are not entering an AI future – we are already living in it,” said [Insert Radware Spokesperson]. “The agentic ecosystem is expanding rapidly across industries, but without strong security and oversight, these systems risk becoming conduits for cybercrime. The businesses that succeed will be those capable of delivering trustworthy, secure AI experiences.”
Security recommendations
The report sets out a series of recommendations for enterprises to protect against the unique risks posed by autonomous AI agents. These include:
- Treating LLMs and AI agents as privileged actors, subject to strict governance and access controls.
- Integrating red-teaming and prompt evaluation exercises into software development lifecycles.
- Evaluating protocols such as MCP and A2A as security-critical interfaces, rather than mere productivity tools.
- Monitoring dark AI ecosystems to stay aware of how adversaries are adapting and exploiting new tools.
- Investing in detection, sandboxing, and behavioural monitoring technologies tailored for autonomous AI systems.
- Recognising that AI-powered defensive capabilities will play an increasingly important role in combating AI-driven threats.
The report concludes by noting that AI agents represent a significant technology shift for businesses. Although these systems hold potential for efficiency and economic growth, they also introduce risks that enterprises must urgently address as the boundaries between helpful tools and security threats continue to blur.
Business
San Francisco Is Investigating Scale AI Over Its Labor Practices

The city of San Francisco is investigating Scale AI over its labor practices, a Scale AI spokesperson confirmed to Business Insider.
Scale AI, which is based in San Francisco, relies heavily on a vast army of people it considers contractors to train tech companies’ latest artificial intelligence models. Meta bought almost half of Scale AI for $14 billion in a blockbuster AI deal this summer.
The city’s investigation is being led by its Office of Labor Standards Enforcement (OLSE), which oversees sick leave, minimum wage, overtime pay, and other regulations for San Francisco workers.
Scale AI spokesperson Natalia Montalvo told Business Insider that the startup is cooperating with the OLSE to provide the information they need and that Scale AI is fully compliant with local laws and regulations.
San Francisco’s investigation into Scale AI is limited to city residents who worked for the startup — including remotely — over the last three years, according to a now-deleted notice posted by Maura Prendiville, a compliance officer at the OLSE, in a subreddit for Outlier AI, a gig work platform run by Scale AI.
While the notice didn’t specify what types of labor practices the city is investigating, it did mention that investigators are looking to speak to people who worked for Scale AI as “taskers” and “freelancers” rather than the startup’s full-time employees.
The investigation’s existence doesn’t mean Scale AI has broken the law, and the city could find it in favor of Scale AI — or drop its probe altogether.
The OLSE declined to answer further questions about the probe, citing its policy of not commenting on ongoing investigations. The agency has the authority to levy fines for labor violations.
In the Reddit post, Prendiville specified that San Francisco is seeking to speak to people who worked for Scale AI through Outlier AI and Smart Ecosystem, another Scale AI platform. She also wrote that she seeks to speak with people who worked for Scale AI through HireArt, a third-party hiring agency, and the gig work marketplace Upwork.
Upwork said it has not been contacted by OLSE.
“Worker classification and compliance with labor regulations are ultimately the responsibility of the hiring business,” an Upwork spokesperson said. “As a general matter, Upwork does not play a role in those determinations.”
Montalvo, the Scale AI spokesperson, said that the feedback the company gets from its contributors is “overwhelmingly positive.”
“Our dedicated teams work hard to ensure contributors are paid fairly, feel supported, and can access the flexible earning opportunities they value,” she said.
It’s not the first time Scale AI has been investigated by labor regulators. It was also the subject of a federal Department of Labor investigation that was dropped this summer, TechCrunch reported.
Some Scale AI workers have previously alleged that the company illegally underpaid them, denied them benefits like sick leave, and misclassified them as contractors in two lawsuits filed over the past year in San Francisco’s superior court.
Meta declined to comment. HireArt didn’t respond to a request for comment.
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