Shrinking AI: India Inc rushes to build smaller-scale models

Small language models are easy to customize, and are cheaper than LLMs like ChatGPT

- Mansi Verma & Rwit Ghosh

What do four Indian companies—two edtech platforms, a fitness tech startup, and a cloud tech company—have in common? The short answer: They are developing smaller-scale artificial intelligence (AI) tools to provide personalized offerings to users.

While these and other Indian companies go all in on AI, many are developing and customizing small language models (SLMs) because off-the-shelf AI tools either fall short of their needs or are too wide-ranging for their functions, experts told Mint.

Aakash Educational Services Ltd, Physics Wallah, Healthify, and Zoho Corp. are among those betting big on such tools, also known as internal foundational AI models. Aakash, which coaches students for professional entrance examinations, is developing AI models that are expected to fructify in 18–24 months, managing director and chief executive officer (CEO) Deepak Mehrotra told Mint.

Its focus is on assessment analytics, which refers to analyzing test results, learner performance, and skills evaluations. It also plans to use AI to create custom learning packages and career pathways.

"We've taken baby steps in this direction, but we're already seeing the impact," said Mehrotra.