Narayana Murthy Cautions Against AI Hype in India, Urges Startups to Aim Higher

Narayana Murthy Cautions Against AI Hype in India, Urges Startups to Aim Higher

NR Narayana Murthy, co-founder of Infosys, has warned against the "exaggerated" claims surrounding artificial intelligence (AI) in India, emphasizing that innovation and job creation are the key drivers in eradicating poverty—not government handouts.

Murthy highlighted that many systems being marketed as AI are, in fact, just traditional programs. Speaking at TiEcon Mumbai 2025, he remarked, "Most of the so-called AI I see is outdated and trivial programming." He explained that genuine AI involves two critical elements: machine learning, which enables large-scale predictive analysis, and deep learning, which mimics human brain functions to handle unsupervised algorithms. "Unsupervised algorithms using deep learning and neural networks have far greater potential to perform tasks that increasingly replicate human behavior," he added.

While acknowledging that technological advancements may result in the elimination of some jobs, Murthy pointed out that if these technologies are used in a supportive manner, they can drive economic growth. For instance, AI in autonomous vehicles and healthcare could lead to the expansion of companies and the creation of new job opportunities.

Murthy also urged startups to set ambitious global benchmarks. "At first, it may seem impossible, but once the mindset shifts, progress will follow," he said. He emphasized the importance of hiring talented individuals who are "smarter than you" and fostering a workplace that encourages innovation. "That’s how you solve problems, not through freebies. Poverty will vanish like dew in the morning sun," he added.

Murthy, a proponent of compassionate capitalism, criticized government subsidies, arguing that they should be tied to measurable outcomes. "When subsidies are given, they should be accompanied by a commitment to tangible results. For example, after providing free electricity for six months, we should see improvements in children's academic performance," he suggested.

Offering advice to entrepreneurs, Murthy emphasized the importance of gaining respect from all stakeholders—customers, employees, investors, and regulators. "If you focus on doing good for society, you'll earn repeat business, attract talented employees, secure investors, and build strong relationships with regulators and politicians," he concluded.

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