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Infosys chair bets companies will develop their own AI models

Nandan Nilekani says small language models trained on specific data are ‘quite effective’

Indian technology grandee Nandan Nilekani expects companies around the world will increasingly build their own smaller-scale artificial intelligence models to streamline operations and boost productivity, dampening hope of a substantial enterprise payday for more powerful generative products.

The chair of IT services major Infosys told the Financial Times he was “not so sure” companies would want to shoulder the high costs and the potential “black box” of data and copyright liabilities associated with large language models behind popular applications, such as OpenAI’s ChatGPT.

“When you look at the large firms they’re all saying: ‘How do we take charge of our AI destiny?’” Nilekani said in an interview in Bengaluru, the Silicon Valley of India. “Small language models trained on very specific data are actually quite effective . . . everybody will build models, but I think they don’t have to build these gigantic ones.”

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