The growing demand for cost-effective AI solutions has led major IT companies to explore alternatives to large language models, with Infosys taking a leading role in developing customized Small Language Models (SLMs) for enterprise clients.
Market evolution and strategic positioning: Infosys has launched two specialized SLMs using Nvidia AI stack, specifically designed for banking and IT applications, in partnership with Sarvam AI.
- The company plans to offer these foundational models as a service, allowing businesses to build custom solutions
- These models are trained on industry-specific data, making them more relevant for targeted business applications
- Customer demand for context-specific SLMs is driving Infosys’s expansion in this space
Technical advantages and market appeal: SLMs are emerging as an attractive alternative to Large Language Models (LLMs), particularly in the Indian market, due to their focused approach and economic benefits.
- SLMs require less computational resources and training data compared to LLMs, making them more cost-effective
- The models address privacy concerns by utilizing enterprise-specific data rather than broad internet-based information
- Their specialized nature allows for more precise and relevant outputs in specific business contexts
Implementation challenges and solutions: Infosys has identified several key hurdles that enterprises face when adopting AI technologies.
- Organizations struggle with optimizing return on investment when selecting AI use cases
- Responsible data management remains a critical concern for enterprises
- The rapidly evolving technology landscape requires solutions that can scale and adapt over time
- To address these challenges, Infosys has developed comprehensive industry blueprints for 23 different sectors
Strategic industry leadership: Infosys is positioning itself as a global leader in enterprise AI adoption, particularly through its India-based initiatives.
- The company is leveraging its extensive enterprise customer base to drive AI adoption
- Infosys’s Head of AI emphasizes the opportunity for Indian IT industries to guide global AI implementation
- The company’s approach aligns with Infosys chairman Nandan Nilekani’s vision of developing efficient, low-cost AI solutions
Future implications: The focus on SLMs represents a significant shift in enterprise AI strategy, potentially reshaping how businesses approach artificial intelligence implementation.
- This approach could democratize AI access for organizations that previously found LLMs too costly or complex
- The success of these models could establish new standards for industry-specific AI solutions
- The emphasis on responsible AI and data management suggests a more sustainable path forward for enterprise AI adoption
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...