TCS, HCLTech and Wipro split workloads across SLMs and LLMs
India's biggest IT companies, TCS, HCLTech, and Wipro, are changing up their AI game as token costs keep climbing.
Now, routine jobs are handled by smaller language models (SLMs), while the heavy lifting goes to larger ones (LLMs).
This switch is all about keeping things efficient as more businesses jump into enterprise AI.
HCLTech advanced AI $171 million last quarter
HCLTech's CEO C Vijayakumar admitted token costs used to be barely noticeable, but they're now a real concern. The company responded by launching tiered AI solutions and saw advanced AI revenue hit $171 million last quarter, up 10.3%.
TCS's CEO K Krithivasan highlighted using different models based on task complexity, a move analysts say saves money and creates new service opportunities like SLM training.
Still, despite these changes, TCS, HCLTech, and Wipro are feeling economic pressure: TCS revenue was flat, and HCLTech and Wipro reported drops last quarter and their shares fell 26% to 33% this year as investors worry about how AI is shaking up IT services.