Infosys Chair Predicts Companies Will Build Their Own AI Models.

As artificial intelligence (AI) becomes increasingly central to business operations, Infosys Chair Nandan Nilekani has made a bold prediction: companies will move toward developing their own AI models instead of relying solely on third-party solutions. This shift, he argues, will allow organizations to gain a competitive edge by tailoring AI to their specific needs and goals.

Why Custom AI Models Make Sense

The rapid evolution of AI has given rise to a range of generalized solutions, from chatbots to predictive analytics tools. While these models are powerful, they often cater to broad use cases, leaving room for customization. By building proprietary AI models, companies can:

1. Address Unique Challenges: Every organization has distinct processes, customer needs, and operational complexities. Custom AI solutions allow for a perfect fit.
2. Ensure Data Privacy: By developing in-house models, businesses maintain full control over sensitive data, reducing reliance on third-party vendors and mitigating risks.
3. Drive Innovation: Tailored AI solutions can enable businesses to innovate faster and create unique products or services that stand out in the market.

The Role of AI in Business Transformation

Nilekani highlights that AI isn’t just an operational tool—it’s becoming a strategic asset. From automating mundane tasks to delivering real-time insights, AI can transform decision-making, enhance customer experiences, and improve efficiency. Companies that invest in their own models can leverage these advantages more effectively, aligning AI capabilities with their long-term vision.

Challenges to Building Proprietary AI Models

Despite the advantages, developing custom AI models comes with challenges:

• High Costs: Building AI models requires significant investment in infrastructure, talent, and training.
• Talent Shortage: Skilled AI professionals are in high demand, making it difficult for some companies to assemble the right team.
• Complexity: AI models need continuous refinement and monitoring to remain accurate and effective.

However, as AI technologies become more accessible and organizations build internal expertise, these barriers are expected to diminish.

The Future of Enterprise AI

Nilekani’s prediction aligns with a broader trend in which companies are shifting from being passive consumers of technology to active developers. Tools like open-source AI frameworks and cloud-based AI development platforms make it easier than ever for businesses to create custom solutions.

This shift could also spark innovation in industry-specific AI applications. For example, a healthcare provider might build an AI model tailored to diagnosing rare diseases, while a logistics company could create one to optimize supply chain operations.

Conclusion

Infosys Chair Nandan Nilekani’s belief that companies will increasingly develop their own AI models reflects the growing importance of AI as a strategic differentiator. While challenges remain, the potential benefits of custom AI—ranging from enhanced innovation to better data control—make it an attractive option for forward-thinking organizations.