Indian businesses are increasingly investing in small language models (SLMs) as they strive for more efficient and targeted technological solutions, according to the latest insights from Deloitte’s Tech Trends – India Perspective 2025 report. This shift towards SLMs is anticipated to revolutionize how companies approach artificial intelligence (AI), enabling the creation of highly personalized and responsive applications.
The Rise of AI Integration in Indian Enterprises
The report emphasizes that the fusion of SLMs with AI-driven simulations and task-specific AI agents is not just a possibility but a reality that is already taking shape. As Indian firms embrace AI as a core component of their innovation strategies, they are paving the way for a more agile and cutting-edge tech landscape.
Abhrajit Ray, Partner and CIO Programme Leader at Deloitte India, remarked, “AI is more than a passing trend in Indian organizations; it’s a transformative force that interlinks technological growth and positions India as a frontrunner in global innovation. However, to sustain this momentum, enhancements in infrastructure, particularly in high-performance computing and sustainable energy, are essential. Simultaneously, fostering workforce development and ethical AI practices will empower this growth.”
AI as a Cornerstone for Industry Transformation
Deloitte’s findings underscore AI’s role as a foundational element rather than a mere standalone technology. This paradigm shift is significantly influencing various sectors within India, fostering a transformation characterized by:
- Multimodal AI capabilities
- Spatial computing
- Advanced analytics
These innovations are making systems more intuitive and facilitating real-time decision-making, thereby reshaping the technological framework across industries.
Hardware Innovation Driven by AI Demand
Another key takeaway from the report is the resurgence of hardware innovation spurred by the needs of Generative AI. Once considered a basic layer in technology, hardware is now being recognized as an integral part of the AI ecosystem.
- Specialized chips for critical functions such as power management, telecommunications, and cryptographic acceleration are essential in this new landscape.
- Heterogeneous computing, which combines GPUs and NPUs on a single chip, enhances efficiency for diverse AI tasks.
This evolution is transforming hardware into a vital catalyst for AI-driven advancements.
Transformative Applications in Defense and Healthcare
In the defense sector, AI-powered mixed reality is enhancing operational readiness through immersive simulations and expediting strategic decision-making via autonomous systems. Similarly, in healthcare, the utilization of virtual environments is leading to improved diagnostic accuracy and refined surgical training methodologies.
Modernization of IT Infrastructure
The report also notes that AI is at the forefront of modernizing core operations across various industries. Traditional IT architectures are being replaced with composable, decoupled structures that seamlessly integrate AI functionalities into daily operations. This shift allows businesses to:
- Automate complex workflows
- Optimize resource use
- Ensure regulatory compliance
These modern systems are designed to tackle ongoing challenges such as cost management and rising customer expectations, although they require significant architectural changes to ensure scalability and security.
Empowering Tech Talent with AI
In the realm of information technology, AI is revolutionizing the way tech talent is utilized. It is increasingly employed for code generation, software testing, and automation, significantly reducing manual effort and enhancing productivity. This trend is pushing organizations to abandon traditional virtualization models in favor of more scalable and cost-efficient AI solutions.
By harnessing the power of AI and SLMs, Indian enterprises are not just adapting to technological advancements but are actively driving them, setting the stage for a future brimming with innovation.
