Is there an overhype around artificial intelligence? Nandan Mohanrao Nilekani, one of the co-founders of homegrown technology major Infosys, had recently said that it would take more time to develop AI-led solutions to enterprises despite ongoing hype around the new technology. Addressing the Carnegie Global Technology Summit 2025 in the US, Nilekani, who played a key role in India’s digital public infrastructure (DPI) including the globally acclaimed Aadhaar, the adoption of AI is a bit easier in consumer space, but when it comes to enterprises, a lot needs to be developed. So is the case with the public services that are more complex in nature. It is quite common that whenever new technology is introduced, the hype around it goes up. This happened with cloud technology. We also had similar experience with blockchain technology, which became popular post the cryptocurrency mania.

But artificial intelligence (AI) is starkly different from many advanced technologies and innovations the world has seen so far. For the first time in human history, machines will make decisions using AI, not humans, which is currently normal practice.

Though we have seen many advancements in technology so far, the final decision-making rests with humans only. With the advent of AI technology, that is likely to change. But, relying on technology for decision-making will be a risk for corporates and sensitive sectors like healthcare unless foolproof technology is developed.

Even a small mistake in decision-making will have a huge impact on the brand image of corporates. It is dreadful to even think of the adverse impact of such errors in healthcare and other such critical sectors. That’s the reason why there are not many full-scale AI projects in the IT sector yet. According to industry insiders, AI is still a small part of an IT project and accounts for just 20 per cent of the project cost. Though IT companies are betting big on AI, including generative AI, not many enterprises are keen on relying on the new technology unless it evolves further, and the trust levels improve. Furthermore, there is a disturbing trend which is gaining traction. That’s called AI washing.

Some companies exaggerate the use of AI in their products and services even though the role of this technology is minimal. This is a pure marketing gimmick, creating overhype about this technology. Moreover, governments around the world are also talking excessively about the use of AI technologies these days, albeit as a marketing tactic. But we need to realise that there is a long way to go before the world can enjoy the full benefits of AI. This is not to say that AI is not promising as technology. According to some estimates, the global AI market is expected to reach $245 billion this year.

This market size is likely to grow multifold over the next decade. But it is important to keep expectations realistic and zero in on real benefits instead of succumbing to overhype. This can only happen if we understand the limitations of AI and focus on its practical uses. That way, people and corporates can avoid disappointment and benefit from this game-changing technology. Either way, India stands to benefit immensely from this adoption, which as Nilekani pointed out, will be faster in the country. But overhyping around AI is not desirable. And that’s the bottom line.