Infosys reports surge in demand for custom small language models

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