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Indian startups are increasingly choosing to rely on the compact version of artificial intelligence, known as the small language models, as the affordable alternative to the costly and cloud-based large language models.

As per the recent reports, the fintech, healthtech, and legaltech start-ups are choosing to rely on the SLMs as the means to address the three critical issues faced by the Indian start-ups. The issues are the high cost of cloud services, lack of digital infrastructure in the country, and poor internet connectivity. Moreover, the strict data privacy regulations have been put in place by the Digital Personal Data Protection (DPDP) Act. This is the pragmatic way of adapting to the version of artificial intelligence, which is designed to suit the Indian market.