During the global alumni meeting at National Institute of Technology (NIT) Tiruchirappalli in Tamil Nadu, India Tata Group chairperson N. Chandrasekaran predicted significant investments in smaller, domain-specific artificial intelligence (AI) models, which he believes will be more relevant than large language models (LLMs).
Addressing the audience as an alma mater of NIT Trichy, Chandrasekaran said that these smaller AI models are more energy-efficient, cost-effective, and provide quicker results.
Chandrasekaran remarked, “In 2023, there was remarkable hype surrounding LLMs. It became the most talked-about term, and it is no longer just a buzzword. In 2024, we are seeing enormous opportunities with multimodal capabilities for AI engines. I believe 2025 will be the year for significant investments in small language models.”
While acknowledging that LLMs will continue to play a role, he emphasized that small language models will have a more profound impact due to their lower energy consumption, reduced costs, and faster results in specific domains.
“I believe this will be a phenomenal year for AI,” he added.
As reported by The Times Of India, He also addressed the global challenges of the green energy transition, Chandrasekaran pointed out that the world’s total energy demand is rising due to efforts to revive industrial growth as well as the increasing use of AI and data centres.
He also stressed the importance of reducing energy costs and exploring alternatives beyond solar and wind, such as small modular reactors (SMRs).
He emphasized the critical need to reduce energy costs for overall economic growth.
“In my view, the single most critical issue for global growth and prosperity is the cost of energy,” he stated, noting that addressing this issue will require significant investment and innovation in new forms of energy, including SMRs.
Notably, Finance Minister Nirmala Sitharaman announced the opening of the nuclear sector for private investment in the 2024-25 budget.
She indicated that the government would collaborate with private entities to establish Bharat Small Reactors and invest in the research and development of SMRs.
At last, Chandrasekaran concluded, “I say this with conviction: India is perhaps the only country uniquely positioned to take full advantage of and benefit from these three trends and transitions, in light of the current geopolitical landscape.”
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