Tata Steel Bets on AI to Become the “Zepto & Blinkit of Industry”

Steel and Artificial Intelligence (AI) might seem worlds apart, but for Tata Steel, one of India’s most iconic 118-year-old companies, they are now part of the same journey. Tata Steel is redefining what it means to be a steel manufacturer by embracing cutting-edge technologies to drastically reduce delivery times and improve customer experience — from weeks to just 72 hours.

From Legacy to Agility: A Bold Digital Leap

“We are now trying to become the Zepto, Zomato or Blinkit of the world,” says Jayanta Banerjee, CIO of Tata Steel. “Being a steel company, I will not be able to deliver steel to you in 10 minutes, but through our digital platform Aashiyana, I can deliver steel to you in 72 hours.”

This ambition might sound bold, but Tata Steel has the muscle to back it. With a crude steel capacity of 35 million tonnes per year, and operations spread across India, the UK, the Netherlands, and Thailand, the company has built a robust foundation to digitize the entire supply chain.

Digital Transformation: A Journey That Began in 2017

Tata Steel’s digital revolution started back in 2017–18 with the adoption of ERP systems. Since then, it has built a data-driven ecosystem, developing over 600 AI models and accumulating nearly 11.2 petabytes of operational data.

These AI tools aren’t just experimental — 80% of them are actively used in manufacturing, improving safety, quality, efficiency, and yield. From detecting manufacturing defects through AI imaging to monitoring coal moisture and even ensuring worker safety through algorithms — technology is embedded in every layer.

One Unified Tech Vision

To ensure maximum impact, Tata Steel brought engineering, digital, and IT functions under a single leadership. This allowed seamless coordination, a unified tech stack, and a “single source of truth” for decision-making. Every digital investment is ROI-driven, directly tied to key performance indicators (KPIs) like yield, productivity, and energy efficiency.

“Every dollar spent had to give something back to the company,” emphasizes Banerjee.

Customer-Centric Innovation: Aashiyana and Beyond

Through its digital platform Aashiyana, Tata Steel not only sells steel online but also guides homeowners and builders with construction tips and consultations. What used to take seven days for order confirmation now happens in just 72 hours — a major milestone for the traditionally slow-moving industry.

This e-commerce-like approach makes steel purchasing smoother for both businesses and end-users, giving Tata Steel an edge in an increasingly competitive landscape.

Global Recognition and AI Partnerships

Tata Steel’s efforts haven’t gone unnoticed. It has earned recognition from the World Economic Forum’s Lighthouse accreditation — a gold standard in digital transformation — covering over 80% of its production. Additionally, the company partners with prestigious institutions like MIT and benchmarks itself against Gartner frameworks, reaffirming its global leadership in industrial digitization.

Future-Ready with Generative AI and Agentic Systems

Looking ahead, Tata Steel is betting big on Generative AI (GenAI) and agentic AI. These technologies are expected to:

• Create new content,

• Analyze vast volumes of data to provide insights,

• Power natural language-based robotic systems that can act on human commands.

Banerjee sees the future in humanoid AI — intelligent systems that can take verbal inputs and execute tasks autonomously.

Responsible AI for India’s Reality

Despite the optimism, Banerjee is mindful of the social implications. While AI boosts efficiency, India’s workforce abundance means Tata Steel must deploy tech responsibly. Automation here isn’t about replacing workers but about augmenting them.

“In India, we need co-pilots, not replacements. Robots should help humans, not displace them,” he adds.

The Digital Dividend: Beyond Profits

Tata Steel has already achieved its target of saving $2 billion through digital innovation. But beyond numbers, the transformation has helped attract new customers from diverse demographics and opened up new business models.

Conclusion: Steel Gets Smart

Tata Steel is a shining example of how traditional manufacturing giants can evolve into agile, tech-savvy enterprises. With AI at its core, Tata Steel is no longer just delivering raw materials — it's delivering experiences, insights, and speed.

As the company eyes even more innovation through AI and GenAI, the steel of tomorrow may be as much about intelligence and interface as it is about strength and structure.

FAQs

1. What is Tata Steel’s goal with AI adoption?

Tata Steel aims to become a fast, customer-centric company by using AI to reduce delivery time and improve overall efficiency, similar to quick-commerce platforms.

2. What is the Aashiyana platform by Tata Steel?

Aashiyana is Tata Steel’s digital platform that allows users to order steel online and get construction guidance, reducing delivery time to around 72 hours.

3. When did Tata Steel start its digital transformation?

Tata Steel began its digital transformation journey around 2017–18 with ERP systems and has since developed a strong AI-driven ecosystem.

4. How is AI used in Tata Steel’s operations?

AI is used for defect detection, safety monitoring, quality control, and improving manufacturing efficiency across operations.

5. What makes Tata Steel’s digital strategy unique?

The company has integrated engineering, IT, and digital teams under one leadership, ensuring better coordination and data-driven decision-making.

6. What global recognition has Tata Steel received?

Tata Steel has been recognized by the World Economic Forum’s Lighthouse program for its advanced digital transformation efforts.

7. How does Tata Steel view AI’s impact on jobs in India?

Tata Steel focuses on using AI as a support system (co-pilot) to assist workers rather than replace them, ensuring responsible adoption.