The company is using artificial intelligence to improve yield, safety and energy efficiency in real time
MUMBAI (India CSR): Tata Steel, a global leader in industrial manufacturing, is deepening its technology-led transformation with large-scale adoption of artificial intelligence, digital platforms and advanced manufacturing systems across its value chain. The company has deployed more than 860 AI models to improve yield, safety, energy efficiency and real-time decision-making. The update was shared by Natarajan Chandrasekaran, Chairman, Tata Steel, during the company’s 119th Annual General Meeting. He said Tata Steel is moving ahead as “one Tata Steel” with a strong focus on technology and digital transformation.
AI Across Operations
Tata Steel’s AI adoption is no longer limited to pilot projects. It is now spread across the value chain. The company is using AI models to support production, maintenance, safety, energy use and process optimisation. These models are helping the company make faster decisions. They are also improving operational accuracy. In a large manufacturing business, even small improvements in yield and efficiency can create major value. The deployment of over 860 AI models shows the scale of Tata Steel’s digital ambition. It also reflects how steelmaking is changing. Traditional manufacturing is now becoming more data-driven, predictive and intelligent.
“Tata Steel Limited’s GenAI-enabled TSL Cares platform has transformed complaint logging, enabling 90% of customer complaints to be registered directly.”, BRSR report said.
On April 22, 2026, Tata Steel and Google Cloud jointly announced a major expansion of their strategic partnership to architect the future of steel and advance Tata Steel’s unified, enterprise-wide agentic AI strategy. Using Google Cloud’s unified technology stack, Tata Steel is rapidly scaling autonomous capabilities across its vast global organisation.
Turning data into a competitive edge
Specialised AI is only as powerful as the decades of operational data that fuels it – and Tata Steel’s early investment in a consolidated data architecture on Google Cloud enabled the Company to move beyond fragmented tools to create a single, enterprise-wide engine for execution. This transformation is driven by two key platforms that bridge the gap between complex data and real-world action:
The first is Zen AI which is empowering a new generation of developers in Tata Steel. This internal low-code platform enables employees who are not data scientists – such as software developers and frontline managers – to build, test, and deploy their own specialised AI agents. Built using Google Cloud’s Agent Development Kit (ADK) and integrated with BigQuery and Google Cloud Storage, Zen AI unifies decades of structured operational data with unstructured sources like video and documents within a secure, governed framework. This in turn has transformed Tata Steel’s global workforce into a distributed engine of innovation, where small, agile teams can now deploy enterprise-grade AI solutions with speed and precision that rivals the most nimble technology disruptors.
The second is the Tata Steel Digital Assistant (TDA) – a sophisticated internal portal that synthesises once-siloed information into a single interface, acting as a command center for decision making. With the ability to query data across three distinct domains – global public data, internal enterprise systems (such as operational APIs, SOPs, and financial records), and proprietary user data (including call recordings, complex spreadsheets, and PDFs) – TDA allows employees to navigate volatility with unprecedented precision. For example, by layering real-time global news and geopolitical sentiment over traditional commodity price data, the AI agents can provide predictive market intelligence, helping the Company stay ahead of supply chain shifts and market fluctuations. By turning data like call recordings and PDFs into actionable insights, Tata Steel is also transforming its vast organisational knowledge into a distinct, data-driven competitive advantage.
Real-Time Improvements
According to the Chairman’s AGM speech, Tata Steel’s AI models are driving real-time improvements in yield, safety and energy efficiency. These are three critical areas for any steel company. Yield improvement means better output from raw materials. It helps reduce waste. It also supports cost efficiency. Safety improvement is equally important. Steel plants operate in complex and high-risk environments. AI can support early warnings, risk detection and safer operations. Energy efficiency is another major focus area. Steelmaking is energy-intensive. Better energy management can reduce costs and also support climate goals.
Digital Steelmaking Vision
Tata Steel has been on a multi-year digital transformation journey. The company aims to become a leader in “Digital Steel making.” This means using technology not only in offices and customer platforms, but also deep inside manufacturing processes. Its plants at Jamshedpur, Kalinganagar and IJmuiden have received Global Lighthouse recognition from the World Economic Forum. This recognition is given to advanced manufacturing sites using Fourth Industrial Revolution technologies at scale. The company has also been recognised with the “Digital Enterprise of India – Steel” Award 2024 by Economic Times CIO. These recognitions show that Tata Steel’s digital journey has gained national and global attention.
Strong Digital Platforms
Tata Steel’s digital transformation is also visible in customer-facing platforms. During the year, its digital platforms Aashiyana and DigECA achieved a combined Gross Merchandise Value of Rs. 9,360 crore. This represents a sharp growth of 161% over the previous year. The growth indicates rising digital engagement with customers, partners and market participants. Aashiyana and DigECA are important because they expand Tata Steel’s reach beyond traditional business channels. They also create a more direct, transparent and efficient digital interface with users.
Competitive Advantage
Technology is becoming central to Tata Steel’s competitive strategy. The company aims to use digital tools and manufacturing advancements to strengthen its market leadership. In a competitive steel market, cost control, quality, delivery speed and customer engagement are key differentiators. AI and digital platforms can help improve all these areas. The company’s focus on technology also supports its expansion into high-value and technology-intensive segments. These include automotive, defence, shipbuilding and advanced flat products.
Manufacturing Transformation
Tata Steel’s digital push comes at a time when the company is expanding its manufacturing capacity in India. During the year, it commissioned the Phase II expansion at Kalinganagar. This increased the company’s total capacity to 26.1 MTPA. It also expanded the Kalinganagar site capacity from 3 MTPA to 8 MTPA. The site now has India’s largest blast furnace and a state-of-the-art Cold Rolling Mill. These assets will support Tata Steel’s move towards high-value products. AI and digital systems will be important in managing this larger and more complex manufacturing network. They can improve process control, quality consistency and productivity.
Smarter Safety Systems
Safety remains Tata Steel’s top priority. The company has committed itself to zero-harm across locations. Technology is playing an important role in this safety journey. AI-based systems can identify risk patterns. Digital tools can improve monitoring. Real-time alerts can help teams respond faster. In heavy industry, safety depends on people, processes and technology working together. Tata Steel is strengthening all three areas. The company has said, Beyond administrative tasks, this agentic ecosystem is driving immediate impact across the manufacturing floor, where safety remains the highest priority. By integrating AI directly into industrial workflows, the Company has shifted from traditional monitoring to proactive, real-time intervention.
Energy Efficiency Focus
Energy efficiency is a major business and sustainability priority for Tata Steel. The company’s AI models are helping improve energy performance across operations. Better energy efficiency reduces production costs. It also lowers environmental impact. This is important as Tata Steel pursues its Net Zero by 2045 objective. The steel industry faces growing pressure to reduce emissions. Digital tools can help companies track, manage and optimise energy use more effectively.
Digital Growth Link
Tata Steel’s digital growth is closely linked to its overall business performance. The company delivered strong results during fiscal 2026. Its consolidated revenue grew 6% to Rs. 2,32,140 crore. Consolidated EBITDA rose 35% to Rs. 34,848 crore. Profit After Tax increased 243% to Rs. 10,886 crore. The company also reduced its consolidated net debt to Rs. 80,144 crore. This strengthened the balance sheet and improved financial resilience. These results came during a year of mixed global conditions. Global steel output fell by 2% to 1.85 billion tonnes in CY2025. However, India’s steel sector remained resilient.
India Growth Context
India’s steel industry continued to grow during the year. Production rose 10.7% to 168.4 million tonnes. Demand increased 7.6% to 163.7 million tonnes. This growth was supported by infrastructure, construction, automotive and industrial sectors. Strong domestic demand helped Indian steelmakers remain better positioned than many global peers. Tata Steel is using this growth environment to expand capacity, upgrade product mix and strengthen digital capabilities.
One Tata Steel
The Chairman described Tata Steel’s journey as a transformation towards becoming a larger, greener, smarter and more resilient company. The phrase “one Tata Steel” reflects integration across businesses, geographies and platforms. Digital technology can play a key role in this integration. AI models can connect insights across operations. Digital platforms can connect customers and supply chains. Advanced manufacturing can connect growth with efficiency.
Future Direction
Tata Steel’s AI adoption shows that the future of steelmaking will be smarter and more connected. Data will influence plant operations. Automation will support faster decisions. Digital platforms will shape customer experience. The deployment of more than 860 AI models is a major signal. It shows that Tata Steel is not treating AI as a trend. It is making AI part of its operating system. The company is expected to continue using technology to improve productivity, strengthen safety, reduce energy intensity and enhance market competitiveness.
Bigger Transformation
Tata Steel’s technology journey is also aligned with its broader transformation agenda. The company is expanding in India. It is restructuring its European operations. It is investing in low-carbon steelmaking. It is also strengthening customer-facing digital businesses. In the UK, Tata Steel has started work on the £1.25 billion Electric Arc Furnace project at Port Talbot. In India, it has commissioned a 0.75 MTPA Electric Arc Furnace in Ludhiana. These steps reflect its shift towards greener and modern steelmaking. Digital transformation will support these changes. It will help the company manage complexity, improve efficiency and build future-ready capabilities.
