New Delhi, May 1 (KNN) Indian enterprises are increasingly turning to small language models (SLMs) in their pursuit of more efficient, faster, and targeted solutions, according to Deloitte’s Tech Trends – India Perspective 2025 report.
The integration of SLMs with AI-based simulations and task-specific AI agents is expected to drive the development of highly personalised and responsive solutions. This transformation is already underway, with AI becoming the backbone of innovation for Indian businesses.
“Across Indian organisations, AI is not just a trend but a powerful force weaving together technological advancements and driving India’s growth as a global leader in innovation,” said Abhrajit Ray, Partner and CIO Programme Leader, Deloitte India.
“However, India must enhance its infrastructure, particularly high-performance computing and sustainable energy solutions, to accelerate growth while empowering its workforce through skill development and building ethical AI frameworks,” Ray explained.
The report positions AI as a foundational force enabling breakthroughs across industries rather than a standalone technology. In India, this is resulting in tangible changes throughout the tech ecosystem.
A new wave of innovation is being driven by the convergence of multimodal AI, spatial computing, and advanced analytics, making systems more intuitive and capable of real-time decision-making.
Hardware innovation is experiencing a resurgence, driven by the demands of Generative AI, according to the report. What was once viewed as a commoditised technology layer has re-emerged as a critical component in the AI ecosystem.
AI-powered hardware is transforming sectors by enabling smarter devices and more efficient systems, sparking a new era of hardware-centric innovation.
Specialised chips for key functions such as power management, telecommunications, and cryptographic acceleration are gaining importance.
Simultaneously, heterogeneous computing—where GPUs and NPUs are integrated on a single chip—is enabling greater efficiency and performance for varied AI workloads. This evolution establishes hardware not just as a support system but as a driver of AI innovation.
In the defence sector, AI-powered mixed reality is enhancing preparedness through immersive simulations and supporting faster, more strategic decision-making via autonomous systems.
Virtual environments in healthcare are improving diagnostic precision and advancing surgical training practices.
The report also highlights how AI is driving core modernisation across industries. Traditional monolithic IT architectures are being replaced by composable, decoupled structures that allow businesses to integrate AI capabilities into everyday operations.
These modern systems help automate complex workflows, optimize resource utilisation, and maintain regulatory compliance while responding to ongoing challenges such as cost constraints, evolving workforce needs, and heightened customer expectations.
However, such transformation requires deep architectural shifts to maintain scalability, security, and long-term viability.
In the information technology sector, AI is empowering tech talent through deployment for code generation, software testing, and automation, reducing the need for manual intervention and boosting productivity.
This trend is pushing organisations to move away from traditional virtualisation models in favour of more scalable and cost-effective AI-powered solutions.
(KNN Bureau)
