According to Infosys Chairman Nandan Nilekani, India has a unique opportunity to become a global leader in the application of artificial intelligence (AI) and frugal engineering. The global AI race is driving Western nations to evolve rapidly, and India must also accelerate its pace to stay competitive. However, unlike American firms that are focusing on Large Language Models (LLMs), India can gain a significant advantage by developing Small Language Models (SLMs) that are more accessible and customizable.
Nilekani highlighted three key areas where the combination of AI and frugal engineering can be most impactful: global capability centers of multinational firms, IT service providers assisting clients with AI transformation, and India’s digital public infrastructure. He cited the success of India’s digital initiatives, such as Aadhaar and the Unified Payments Interface (UPI), as examples of innovation at a population scale. The simplicity of the one-page API design for both Aadhaar and UPI was a key factor in their success.
Nilekani believes that while LLMs may become commodities, India’s strength lies in developing SLMs that are cheaper and can provide a localized AI experience. He gave an example of a farmer in Bihar who can speak to his phone in his native language and receive real-time information on best farming practices and market access. This, according to Nilekani, is an example of how India can leverage AI to improve the lives of its citizens.
The development of SLMs can be a game-changer for India, as it can enable the creation of customized AI solutions that cater to the specific needs of the country’s diverse population. By focusing on SLMs, India can create a niche for itself in the global AI market and establish itself as a leader in the application of AI and frugal engineering. Overall, Nilekani is optimistic about India’s potential to become a global leader in AI and believes that the country is well-positioned to make significant strides in this area.