'There is no law of computer science that says that AI must remain expensive and must remain large': IBM CEO Arvind Krishna bangs the drum on smaller AI models

"AI has moved from experimentation to a focus on unlocking business value; businesses are now concerned with use-cases and scaling leveraging AI, marking a shift in approach."

"Smaller, domain-specific AI models are essential for enterprises to efficiently harness their internal data and address specific business challenges, departing from the previously favored larger models."

IBM CEO Arvind Krishna emphasizes that the generative AI landscape has matured, with enterprises moving from experimentation toward a focus on real business value. During IBM's 2025 conference, Krishna noted that while larger AI models served their purpose, businesses are now prioritizing smaller, domain-specific models that are tailored to solve specific challenges and effectively utilize previously untapped internal data. This transition is driven by a need for improved productivity and the realization that not all AI is suited for enterprise applications, with 99% of enterprise data remaining untouched by AI.

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