Press Release - TCS study reveals Physical AI is now mainstream as manufacturers scale AI implementation

TCS/PR/SE/22/2026-27 July 22, 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, P. J. Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai - 400051 Mumbai - 400001 Symbol - TCS Scrip Code No. - 532540 Dear Sirs, Sub: Press Release We are sending herewith copy of the Press Release titled “TCS study reveals Physical AI is now mainstream as manufacturers scale AI implementation” which will be disseminated shortly. The Press release is self-explanatory. Thanking you, Yours faithfully, For Tata Consultancy Services Limited Yashaswin Sheth Company Secretary ACS 15388 Encl: as above 9th Floor Nirmal Building Nariman Point Mumbai 400 021 Tel 91 22 6778 9595 Fax 91 22 6630 3672 e-mail corporate.office@tcs.com website www.tcs.com Registered Office 9th Floor Nirmal Building Nariman Point Mumbai 400 021 Corporate Identity No. (CIN): L22210MH1995PLC084781 TCS study reveals Physical AI is now mainstream as manufacturers scale AI implementation 77% expect significant transformation in warehouse operations, followed by assembly and manufacturing operations at 75% Manufacturers commit to long-term physical AI investment as enterprise-wide deployment ramps FARNBOROUGH, UK | MUMBAI, July 22, 2026: Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a global leader in IT services, consulting, and business solutions, today announced the findings of the Future-Ready Manufacturing: TCS Physical AI Readiness Report 2026. The report reveals that as manufacturers increase their AI investments, the focus is shifting from standalone automation projects to larger physical AI ecosystems. It highlights that companies see physical AI as a people-first transformation. Instead of replacing the workforce, manufacturers are using intelligent systems to help employees work more safely, efficiently, and productively while supporting workforce redeployment where needed in a Human + AI Operating model. The report also highlights how enterprises are preparing to scale physical AI across factories, warehouses, logistics networks, maintenance operations, and quality management environments. It provides insights into the strategies, challenges, and opportunities involved in adopting physical AI at scale. The study builds on TCS’ partnership with Google Cloud, following the March 2026 launch of the TCS Physical AI Gemini Experience Center in Troy, Michigan. The center helps manufacturers explore, test, and scale physical AI use cases for safety, quality, and operational efficiency with intelligence at the core. The study surveyed CXOs and vice presidents from 300 manufacturing companies across North America and Europe between March and April 2026. Respondents represented sectors such as automotive, electronics and high-tech manufacturing, industrial equipment and machinery, process industries, and aerospace and defense. Key findings from the study include: • Manufacturers are committing to long-term investment: No surveyed organization plans to reduce Physical AI investment, while 26% plan to increase spending. Manufacturers are preparing for longer value-realization timelines, underscoring sustained transformation over short-term pilots. • High impact expected in warehouse operations: 77% anticipate significant or transformational impact, followed by assembly and manufacturing operations at 75% and logistics and material movement at 72%. Page 1 of 3 • Human-centric transformation is taking shape: 42% of manufacturers expect significant workforce augmentation through Physical AI by improving safety and supporting workers in complex, hazardous, or repetitive industrial environments. • Early-stage adoption, clear roadmap to scale: 68% of manufacturers remain in non- deployment or experimental stages, with legacy system integration, data infrastructure, and workforce skills identified as the primary paths to enterprise-scale deployment. • Governance is the next frontier: 44% report unclear or no formal accountability structure for Physical AI failures, and 40% are unprepared for emerging regulatory requirements, signaling where manufacturers should focus as deployment accelerates. Anupam Singhal, President, Manufacturing, TCS, said, “Physical AI is taking intelligence beyond the screen and onto the shop floor, where machines sense, adapt and act in real time. The manufacturers that scale it successfully will define the next era of manufacturing. TCS’ ‘infrastructure to intelligence’ approach positions them to lead that transformation. With all the manufacturers in our study planning to either maintain or increase the investment, the direction is clear: towards more resilient, adaptive, and future-ready manufacturing enterprises.” Kevin Ichhpurani, President, Global Partner Ecosystem, Google Cloud, said, “Physical AI is moving manufacturing from digital insight to autonomous real-world action. Through our partnership with TCS, we are bringing Gemini’s multimodal reasoning to the factory floor, enabling robots and systems to operate safely and intelligently in complex industrial environments.” TCS is helping global manufacturers move from pilots to enterprise-scale physical AI adoption by bridging the gap between digital ambition and physical deployment. This is enabled through the TCS Physical AI Gemini Experience Center, in Troy, Michigan. Similarly, the TCS Physical AI Blueprint offers an end-to-end framework that integrates AI-powered quadruped and humanoid robotics with advanced sensing, edge intelligence, and secure cloud orchestration to deliver real-time operational insight and autonomous decision support. These capabilities, combined with TCS’ deep manufacturing domain expertise, help enterprises build scalable, governed, and future-ready Physical AI ecosystems. About Tata Consultancy Services Ltd (TCS) Tata Consultancy Services (BSE: 532540, NSE: TCS) is the technology partner of choice for industry- leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence and customer service. It has set an aspiration to become the world's largest AI-led technology services company and is enabling its clients to transform themselves across the full AI stack, from infrastructure to intelligence. Rooted in the heritage of the Tata Group, TCS is focused on creating long term value for its clients, its investors, its employees, and the community at large. With a highly skilled workforce spread across 56 countries and 194 service delivery centers across the world, the company has been recognized as a top employer in six continents. With the ability to rapidly apply and scale new Page 2 of 3 technologies, the company has built long term partnerships with its clients. Many of these relationships have endured into decades and navigated every technology cycle, from mainframes in the 1970s to artificial intelligence today. TCS sponsors 14 of the world’s most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon, Tata Mumbai Marathon, and TCS Sydney Marathon with a focus on promoting health, sustainability, and community empowerment. TCS generated consolidated revenues of over US $30 billion in the fiscal year ended March 31, 2026. For more information, visit www.tcs.com Follow TCS on LinkedIn | Instagram | YouTube | X TCS media contacts: Corporate Communications E mail: corporate.communications@tcs.com India Email: santosh.castelino@tcs.com| Phone: +91 22 6778 9999 Email: rhea.mistry@tcs.com Page 3 of 3