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India Bets on Small AI Models for Efficiency, Says Zoho's Sridhar Vembu

Zoho founder Sridhar Vembu stated that India's current AI investment strategy prioritizes smaller, resource-efficient models over large, famous ones. He highlighted the country's vast, tech-enthusiastic youth population as a unique advantage in adopting and driving AI innovation. Vembu reported that Zoho is already seeing massive productivity gains by deploying AI in software development. He expressed optimism that AI will create new jobs, requiring professionals to focus more on solving customer problems.

Key Points: India's Strategy: Small, Efficient AI Models, Says Zoho Founder

  • Focus on small, efficient AI models
  • Youth population as a key advantage
  • Rapid AI deployment in software
  • AI seen as a net job creator
2 min read

India investing in small AI models for resource efficiency, says Zoho founder Sridhar Vembu

Zoho founder Sridhar Vembu says India is investing in smaller, resource-efficient AI models to leverage its young, tech-enthusiastic population for growth.

"I think we are investing in a lot of the smaller models. Those should be unglamorous right now, but they get the job done. - Sridhar Vembu"

New Delhi, February 17

India is currently investing in smaller artificial intelligence models that are efficient and cost-effective. Zoho founder Sridhar Vembu shared this observation at the India AI Impact Summit in New Delhi. While speaking to, he noted that while these models may not be famous, they are effective for the country's specific needs.

Vembu said that the current trend in India is to focus on models that use fewer resources. He stated, "I think we are investing in lot of the smaller models. Those should be unglamorous right now, but they get the job done." He mentioned the startup Sarvam as an example of a company already launching models with a smaller footprint. He said, "This is going to be the norm in India where a lot of smaller resource efficient, energy efficient models and then we'll scale up over time as the costs decline."

The Zoho founder also highlighted that India has a significant advantage due to its young population. He mentioned that the youth are already at the forefront of adopting technology and creating new opportunities. Vembu noted, "With our vast youth population, we have the most AI enthusiastic population in the world. We are adopting AI faster than any other nation."

Regarding his own company, Vembu said Zoho is rapidly using AI to improve software development. He reported that the company is seeing significant benefits from this technology right now. He explained, "Right now we are rapidly deploying AI in software development. We are seeing massive productivity gains in it." He added that Zoho plans to expand this adoption across the entire company over the next year.

Vembu expressed confidence in how AI will affect the workforce in India. He noted that previous technology waves have always created jobs and believes AI will do the same. He said, "I think there will be new jobs created and software engineers have to get closer to the customer, solve customer problems."

He further said that he is optimistic about the new opportunities emerging from AI.

- ANI

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Reader Comments

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Sarah B
As someone working in tech, I completely agree. The focus on "unglamorous" but effective models is key for widespread adoption in a cost-sensitive market like India. Startups like Sarvam show the way. Hope this leads to more homegrown AI solutions for Indian languages and contexts.
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Priya S
Vembu Sir always talks sense. Our youth population is indeed our biggest asset. They are quick to adapt. If we can channel this energy into building efficient AI, we can create a unique tech ecosystem that doesn't just copy the West.
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Rohit P
Good to hear about the productivity gains at Zoho. But I have a question - while focusing on smaller models is efficient, are we investing enough in the fundamental research to eventually build the larger, frontier models? We shouldn't limit our ambition long-term.
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Kavya N
The job creation point is crucial. There's so much fear about AI taking jobs. We need more leaders like him to highlight how it will create *new* roles, especially if engineers focus on solving real customer problems here in India.
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Michael C
Interesting perspective from India. The energy efficiency angle is a global concern too. If Indian startups can crack cost-effective, small-scale AI, it could be a model for other developing economies. The focus on scaling later makes strategic sense.

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