Smarter models over bigger systems – Nandan Nilekani on AI By Elets News Network - 10 March 2025

Nandan Nilekani

At the People+AI Mela in Bengaluru, Infosys Chairman and Co-Founder Nandan Nilekani raised concerns over the growing trend of building increasingly complex AI models, stating that this approach is now yielding diminishing returns.

He highlighted that while companies invest billions into expanding AI systems with more parameters and tokens, these advancements are not necessarily translating into better performance. Additionally, he pointed out that many of these large models operate as closed systems, limiting accessibility and transparency.


Drawing a comparison with China’s AI development strategy, Nilekani praised the country’s approach for prioritizing efficiency and openness in model building. He cited the example of DeepSeek, a Chinese AI company that recently embraced open-source methodologies, making AI development more transparent and cost-effective by leveraging lower-cost chips and collaborative innovation.

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He emphasised that while AI technology is becoming more accessible, the real value lies in practical applications. He urged India to take the lead by focusing on high-quality data and its usage. As an example, he referenced AI4Bharat, a Chennai-based initiative dedicated to developing Indian language AI, which he has supported for the past three to four years and plans to continue backing for another three years.

According to Nilekani, the future of AI hinges not only on computing power and data availability but also on the ability to leverage these resources for solving real-world problems.

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