Infosys Develops Small Language Model (SLM) for Industry-Specific Applications

Infosys, a global IT leader, is venturing into Small Language Models (SLMs) to cater to industry-specific needs. This initiative, leveraging open-source components and proprietary datasets, is a significant step in its Generative AI (Gen AI) journey. Salil Parekh, Infosys’ CEO, announced the development during the company’s Q2 earnings press conference, emphasizing the focus on creating scalable solutions tailored for business-specific use cases.

What Are Small Language Models (SLMs)?

Small Language Models (SLMs) are compact AI frameworks designed to process and generate text for niche tasks and industries. Unlike larger AI models, SLMs use fewer computational resources and are optimized for specific applications, making them efficient and cost-effective.

Key Highlights of Infosys SLM Development

• Scalable and Industry-Specific Solutions: Infosys aims to roll out SLMs across multiple industries, allowing clients to integrate business logic for tailored use cases.
• Focus on Generative AI: The company is advancing its Gen AI platforms, creating multi-agent solutions, and driving industry adoption of enterprise-grade AI tools.
• Real-World Applications: Over 70,000 employees of a telecommunications client are leveraging Infosys’ Gen AI platform for custom use cases, including customer service, knowledge management, and software development.

Generative AI Projects: Infosys vs. TCS

While Infosys is actively engaged in over 200 Gen AI projects, its competitor Tata Consultancy Services (TCS) has reported managing over 600 Gen AI initiatives, highlighting the intense competition in the AI domain. In Q1FY25, TCS reported a $1.5 billion AI project pipeline, showcasing the growing demand for AI-driven solutions.

Infosys has also made strides in productivity, with six out of eight employees generating three million lines of code using large language models in FY24.

Multi-Agent AI Solutions

Beyond SLMs, Infosys is pioneering multi-agent AI solutions. These agents autonomously handle specific business processes, moving beyond simple assistant roles. “We’ve launched solutions where agents independently manage business workflows, delivering measurable results,” Parekh explained.

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Financial Performance in Q2FY25

Despite these innovations, Infosys reported a 2.2% quarter-on-quarter increase in net profit, reaching Rs 6,506 crore. Revenue for the July-September quarter grew by 4.2% to Rs 40,986 crore, slightly missing market expectations.

Why Infosys’ SLM Matters?

Infosys’ SLM initiative marks a new era in AI development, focusing on agility, efficiency, and industry relevance. By offering customized solutions, Infosys is empowering businesses to harness AI for tangible outcomes, positioning itself as a leader in the Gen AI revolution.