India’s AI growth will come from smaller, cost-effective models, says Sridhar Vembu

.

• India focuses on compact AI models suited to local needs
• Smaller AI systems enable faster, affordable deployment
• Zoho sees productivity gains by integrating AI in development

Did our AI summary help?

Sridhar Vembu has said India is taking a practical route in artificial intelligence development by focusing on compact, resource-efficient models instead of investing heavily in large-scale systems used by global technology firms.

Speaking in New Delhi, Vembu explained that smaller AI models, while less visible in global rankings, are better suited to India’s infrastructure, cost structures, and real-world applications. According to him, these models can deliver results without demanding massive computing power or energy consumption.

Why India is betting on smaller AI models

Vembu noted that India is already seeing startups build AI systems with lighter footprints that operate efficiently on limited resources. These models are designed to solve specific local problems rather than compete purely on scale.

He explained that this approach allows faster deployment across sectors such as language processing, business automation, and regional services, where affordability and accessibility matter more than raw computing size.

Over time, as hardware costs fall and infrastructure improves, Vembu believes these models can gradually scale in complexity and capability without forcing massive upfront investment.

Vembu also highlighted India’s demographic advantage, pointing to the country’s young population as a key driver behind rapid AI adoption.

He said Indian users and developers are embracing new technologies faster than many global markets, experimenting with tools, building applications, and creating services that directly address everyday challenges.

This widespread enthusiasm, according to him, is helping AI move beyond research labs into real-world business and consumer use at a much quicker pace.

Zoho expanding AI across software development

Vembu added that Zoho Corporation is already deploying AI across its internal software development processes.

He said the company is seeing clear productivity gains, with AI assisting in coding, testing, and workflow automation. Zoho plans to expand AI integration across more departments over the next year to improve efficiency and product development cycles.

On concerns about job losses, Vembu maintained that past technology shifts have consistently created new roles, and AI is likely to follow the same pattern by pushing engineers closer to solving customer-focused problems,