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Thursday, January 2, 2025

Is the AI Boom About to Bust? Infosys Chair Predicts Commoditization of Big Models

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AI Models Will Become Commodity, Value Shift Towards Applications: Infosys Co-Founder

The era of massive artificial intelligence (AI) models, like those developed by OpenAI, is poised for a significant shift, according to Nandan Nilekani, co-founder and chair of Infosys. While these large language models (LLMs), the foundation of applications like ChatGPT, are currently at the forefront of AI, Nilekani predicts their eventual commoditization. He believes the next wave of value in this space will come from the applications built on top of these models, emphasizing a move towards a more application-centric landscape.

Key Takeaways:

  • Commoditization of LLMs: Massive AI models, like those developed by OpenAI and Meta, will become increasingly common and potentially standardized, leading to a shift in value.
  • Application-Focused Future: The focus will move towards developing applications that leverage these models, leading to innovation in various sectors.
  • Regionalized LLMs: The need for localized data and bespoke models will drive the development of region-specific LLMs, particularly in countries like India with diverse languages and cultural nuances.
  • Enterprise AI’s Growth: While consumer AI has seen rapid adoption, the integration of AI into businesses, or enterprise AI, will take longer due to the need for internal reinvention.
  • Infosys’s Role: As a leading technology provider, Infosys will be at the forefront of this shift, offering services and consultancy to businesses navigating the complexities of AI adoption and integration.

The Commoditization of LLMs

Nilekani envisions a future where AI models, similar to the ones powering ChatGPT, become widely accessible and readily available. This "commoditization" of foundational models will, he argues, drive a shift in focus towards the development of specialized applications that build upon these models.

"There are many companies now coming up which are building India-specific LLM solutions for Indian languages … so I think what’s going to happen is that because AI is finally dependent on the data it is trained on, every part of the world which has unique data will be required to do something about training the models for that data," Nilekani stated.

He further emphasized that this burgeoning landscape will see a surge in AI models tailored for specific regions and languages, fulfilling the need for customized applications to cater to diverse user needs.

The Rise of AI Applications

With the groundwork laid by readily available LLMs, the focus will inevitably shift towards the development and deployment of applications that leverage these models. These applications will be the driving force behind innovation across industries, ranging from personalized healthcare to streamlined financial services.

"Ultimately, the models will become more commoditized and the value will switch to the application layer and the whole stack," Nilekani highlighted.

This signifies a shift from the current focus on developing powerful foundational models to a more nuanced approach where the emphasis is placed on creating practical tools fueled by the underlying technology.

Enterprise AI: A Longer Haul

While consumer AI has seen a surge in adoption, Nilekani acknowledges that enterprise AI, the integration of AI into business operations, is a more complex and gradual process.

"Enterprise AI requires firms to reinvent themselves internally. So it’s a longer haul, but definitely it’s a huge thing happening right now," he said.

The inherent differences between consumer and enterprise AI lie in their complexities of adoption: consumer AI is readily accessible and often user-friendly, while enterprise AI demands significant organizational changes and strategic planning.

Infosys’s Role in the AI Revolution

As a prominent player in the technology landscape, Infosys is well-positioned to guide and support businesses navigating the evolving AI ecosystem. Their expertise in outsourcing and consultancy services will be instrumental in facilitating the adoption of AI solutions.

"Infosys is one of India’s biggest technology companies offering outsourcing and consultancy services," Nilekani affirmed.

Infosys will be actively involved in assisting businesses in integrating AI into their operations, helping them grasp the opportunities and navigate the challenges inherent in this technological transformation.

The Future of AI: A Collaborative Ecosystem

The future of AI, according to Nilekani, will be characterized by a collaborative ecosystem where different players come together to develop and deploy innovative solutions. He envisions a future where technology giants like OpenAI and Meta, alongside smaller companies and startups, will work together to push the boundaries of what AI can achieve.

This collaboration will see a convergence of expertise, resources, and innovation, driving rapid advancements in the field of AI. Nilekani’s vision paints a picture of a future where AI is not just a technological marvel but a key enabler of progress and societal transformation.

Article Reference

Lisa Morgan
Lisa Morgan
Lisa Morgan covers the latest developments in technology, from groundbreaking innovations to industry trends.

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