Credibility Check On AI Innovations Likely

The world of AI (artificial intelligence) is evolving fast. More players are joining the race with fierce intensity. In the last seven days, two more complex models have been launched. First, Per-plexity AI has released its own AI research tool called 'Deep Research', which can help users get in-depth answers with citations for more complex queries. "It (Deep Research) excels at a range of expert-level tasks- from finance to marketing to product research- and attains high benchmarks on Humanity's Last Exam," the company said in a blog post. Interestingly, the company has made it free for users.

This update comes after OpenAI and Google launched similar features very recently. In another major development, Elon Musk-backed xAI has unveiled its latest artificial intelligence chatbot, Grok 3. "At times I think Grok 3 is scary smart," Musk has said during its launch event. Such fast development shows these chatbots are getting wider adoption across the world. From generating answers to simple queries to providing data analysis services; from providing life advice to com-plex answers on research topics; chatbots have proved to be very useful for different sets of us-ers. While these foundational models are making waves in the technology world, these develop-ments indicate the disruption in this space.

As AI models rapidly emerge, it is worth noting that most of these foundational models operate in the B2C (business-to-consumer) space. Though enterprise models are getting launched, the penetration level remains low. That is why SLM (small language models) are getting launched by technology giants; IT services companies, and technology startups. It is to be seen how these en-terprise models' market behaves in the coming quarters. The return on such massive investment will only come when businesses start using these solutions for solving specific business problems.

Therefore, all the initial euphoria will get tested when hard numbers start emerging in companies' earnings. However, fast-evolving AI models show that traditional business models of the tech-nology world are changing at a rapid pace. So, a part of the current revenue of all technology players- be it products or services or SaaS companies- will get cannibalised through AI-powered solutions. Sources in the know said that clients have already started asking for cost benefits from ongoing projects through deployment of AI-powered solutions like chatbots.

Against this backdrop, technology firms will be forced to pass on the cost benefits coming from AI deployment to their clients. As part of revenue gets lost in this process, tech firms will be un-der pressure to generate new sources of revenue in the AI space. No doubt, higher AI-powered services have given rise to increased demand for cloud services. This is one area that has already seen an immediate boost in revenue from the AI wave. But it may not be large enough to offset the losses coming from legacy projects. Investors will also be keen to understand the justification behind the billions of dollars spent on the development of AI models. The advent of DeepSeek has shown that breakthrough innovation is possible by staying frugal in investment. All in all, the initial celebration in AI space will increasingly face tight scrutiny from investors, governments, and users in the coming days.