Small Language Models: Surprisingly A Better Bet For Indian Businesses
WFY Bureau | Economy & Business
Indian enterprises are increasingly embracing Small Language Models (SLMs) to power more efficient, faster, and context-driven technological solutions. This shift marks a strategic turn in how companies are approaching artificial intelligence (AI)—moving away from large, resource-heavy systems to leaner, more focused alternatives.
Speaking to The WFY Magazine, tech strategist and AI expert Mr. Anand Kumar noted, “SLMs are transforming the way Indian businesses think about AI. These models are not just lighter in size—they’re smarter in application. For industries looking for agility and relevance, SLMs are proving to be the right fit.”
According to Deloitte’s Tech Trends – India Perspective report, the integration of SLMs, AI-powered simulations, and task-specific agents is expected to redefine the digital transformation journey across sectors. Mr. Kumar agreed, emphasising that these technologies are no longer experimental but becoming core to operations.
“AI is no longer sitting on the sidelines. It’s becoming the engine room of innovation. The real shift is in how it enables new possibilities while reshaping existing systems,” he said.
What Are Small Language Models?
SLMs are compact AI models tailored for specific tasks or industries. Unlike their larger counterparts, which demand vast computational resources and data, SLMs focus on domain-specific performance with quicker deployment times and lower costs.
“You can think of them as bespoke tools—purpose-built and efficient. While large models give you scale, small models give you control and clarity,” Mr. Kumar explained.
He added that the appeal of SLMs in the Indian context lies in their resource efficiency and the ease with which they can be adapted to local languages, industries, and workflows.
From Automation to Interpretation
A significant trend identified in the report is the rising influence of context-aware intelligence, enabling machines not just to perform tasks but to understand environments and respond dynamically.
“Indian businesses are no longer satisfied with basic automation. They’re now implementing systems that can learn, adapt, and act in real time,” Mr. Kumar observed. “That’s a huge leap—from process automation to intuitive, responsive AI.”
This evolution allows for more fluid and inclusive digital transformation, making businesses more resilient and competitive.
The Return of Hardware to the Spotlight
Interestingly, the explosive growth of Generative AI (Gen AI) has placed hardware back at the centre of tech conversations. Once viewed as a commoditised layer with minor year-on-year improvements, hardware is now critical in supporting advanced AI applications.
“There’s a renewed focus on the foundations—high-performance chips, edge computing devices, and AI-specific processors. The physical layer of tech is being reengineered to keep pace with software innovation,” Mr. Kumar noted.
The emergence of specialised chips—used in areas such as power management, cryptography, and telecom—underscores the need for hardware that’s not just supportive but strategic.
Spatial Computing and Proactive Systems
The report also highlighted the growing role of spatial computing in creating systems that anticipate user needs, rather than simply reacting.
“We’re entering a world where systems don’t just respond—they predict. It’s the difference between a helpful assistant and a visionary partner,” said Mr. Kumar.
Such systems are now being deployed to streamline workflows, optimise resource allocation, and ensure proactive compliance—especially in sectors like healthcare, logistics, and finance.
A Future Anchored in Ethical, Scalable AI
Despite the optimism, experts warn of challenges. To fully realise the potential of AI, India must invest in high-performance infrastructure, green energy solutions, and most importantly, skill development.
“The tech is ready, but the ecosystem needs catching up. We need to train our workforce, build ethical frameworks, and scale responsibly,” Mr. Kumar stated.
The alignment of policy, infrastructure, and talent will be essential in ensuring that AI innovation benefits all layers of society—without compromising on sustainability or inclusivity.
Conclusion: Smarter, Smaller, Sharper
As Indian companies look ahead, the shift toward specialised, lean AI systems like SLMs marks a new chapter in digital innovation. Rather than relying on broad, generalised AI, businesses are choosing tools that align with real-world challenges and sector-specific goals.
“It’s not about being the biggest player in the room anymore,” concluded Mr. Kumar. “It’s about being the most relevant—and SLMs give us that edge.”
With momentum growing across sectors, this movement toward small, intelligent, and adaptive technologies could very well define India’s digital future.
