 "Narayana Murthy warns against AI hype in India, urges startups to aim big")
Infosys co-founder NR Narayana Murthy on Wednesday cautioned against what he called “exaggerated” claims surrounding artificial intelligence (AI) in India, while asserting that poverty can be tackled by innovation and job creation and not by freebies.
Murthy pointed out that many systems labelled as AI are just conventional programs.
“I find that most of the so-called AI, I see, is silly and old programming,” he said while speaking at TiEcon Mumbai 2025.
“It has become a fashion in India to talk of AI in everything. Ordinary programs are touted as AI,” he said, adding that true AI involves two fundamental principles: machine learning, which enables large-scale correlation for predictive analysis, and deep learning, which mimics human brain functions to handle unsupervised algorithms.
“Unsupervised algorithms which use deep learning and neural networks are the ones that have much greater potential to do things that will mimic human beings better and better,” he said.
Murthy highlighted that with every technological advancement, certain jobs may be eliminated, but if implemented in an assistive manner, it can drive economic growth.
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“In each tech, certain jobs will be eliminated, but if used in an assisted manner, we can grow the economy,” he said.
Drawing parallels with AI, he explained that while automation may replace certain roles, it also has the potential to create new industries and employment opportunities.
“AI for example, if you use it in autonomous vehicles for transport, hospital care, it will lead to expansion of those companies and create jobs,” he said.
He urged startups to benchmark themselves against the best global standards.
“In the beginning, it looks impossible, but the moment the mind-set has been created, you’ll start making progress,” he said. He also stressed the need to hire talent that is “smarter than you” and to foster a workplace that is open to new ideas.
“That’s how you solve the problem, and not with freebies. Our poverty will vanish like dew on a sunny morning,” he added.
“Every startup that failed did not follow this,” said Murthy.
An advocate of compassionate capitalism, Murthy took a critical stance on government freebies, arguing that subsidies should be tied to measurable outcomes.
“What you can do is, when subsidies are provided, you can ask for something in return. If you give free electricity for the first six months, at the end of it, we’ll find out if children are reading more and if their performance is better in school,” he added.
Offering guidance to entrepreneurs, Murthy emphasised the importance of earning respect from all stakeholders, including customers, employees, investors, and regulators.
“If you think in terms of doing good to society, you’ll get repeat business, employees will join and investors, vendors will put up with you in difficult times, politicians will want you to succeed,” he said.