Tata Consultancy Services reported an annualised AI revenue run rate of $3.1 billion in the September quarter of FY27. While AI investments grow, CEO K Krithivasan said nearly 50% of IT services contracts had experienced AI-led deflation. Meanwhile, TSMC recorded third-quarter revenue of T$1.49 trillion, showing strong growth for chipmakers.
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.
Tata 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.
An 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.
For 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.
The change is not confined to IT services. Enterprise software companies are also revisiting how they charge customers. Amit Zavery, President, Chief Product Officer and Chief Operating Officer at ServiceNow, said 50% of the company's net-new revenue over the past year was non-seat-based, highlighting how AI is reshaping the economics of enterprise software.
Customers are increasingly being offered pricing based on outcomes, data transfer, service-level agreements and consumption rather than simply the number of users accessing a product, he said.
Meanwhile, OpenAI’s revenue figures have drawn attention to how AI companies measure their growth. The company told investors that its annualised revenue for September was nearly $50 billion, according to a person familiar with the matter cited by Reuters. That was below the approximately $70 billion revenue run rate previously indicated to investors.
The difference relates to how revenue from cloud partners is counted. OpenAI excludes certain sales through cloud partners from its calculation, while rival Anthropic includes them, Reuters reported. The figures therefore reflect different approaches to measuring revenue and should not be treated as directly comparable.
The companies supplying the chips needed to run AI systems are also reporting strong growth. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, recorded third-quarter revenue of T$1.49 trillion ($46.71 billion), up 50% from a year earlier. The figure exceeded the market forecast of T$1.46 trillion, according to Reuters calculations, amid strong demand for AI applications.
Beyond the revenue figures, AI’s potential impact on working life also made headlines this week. Amazon founder Jeff Bezos said advances in AI could deliver double-digit productivity gains and make a three-day workweek possible. Speaking to Fox News, he also suggested that higher productivity could make single-income households more viable. These were his projections, not an announced change to working arrangements.
Governments are also preparing for wider AI adoption. Union Minister for Electronics and Information Technology Ashwini Vaishnaw said India expects to publish a consultation paper on AI regulation within a month.
Speaking at the launch of the World Bank’s World Development Report 2026: The Promise of Artificial Intelligence, he said the paper would form the basis for future regulation.
The World Bank report describes AI as an opportunity for low- and middle-income countries to address longstanding development challenges. However, it warns that countries with the most to gain are among the least prepared to adopt the technology. It recommends that developing countries first use existing AI tools, adapt them to local needs and then work towards building their own advanced models.
The economic debate also extends to government finances and inequality. International Monetary Fund Managing Director Kristalina Georgieva called on countries to address rising debt and inequality as they navigate the AI boom, heavy borrowing and economic shocks linked to conflicts in the Middle East and Ukraine.
From IT services contracts and enterprise software pricing to AI developers and chipmakers, this week’s developments show how businesses across the technology industry are generating revenue from AI, while governments consider how the technology should be adopted and regulated.