Tata Steel Deploys Over 860 AI Models to Drive Smart Manufacturing and Digital Growth

The company is using artificial intelligence to improve yield, safety and energy efficiency in real time

MUMBAI (India CSR): Tata Steel 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.

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.

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.