Narayana Murthy Cautions about AI Hype, Urges Indian Startups to Think Big

Infosys co-founder NR Narayana Murthy warned against what he called "exaggerated" claims about artificial intelligence (AI) in India, arguing that poverty can be alleviated through innovation and job creation rather than handouts.

Murthy pointed out that many systems labeled as AI are simply conventional programs.

"I find that most of the so-called AI, I see, is silly and old programming," he said during TiEcon Mumbai 2025.

"It has become fashionable in India to talk about AI in everything. Ordinary programs are marketed as AI," he said, adding that true AI consists of 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," according to him.

Murthy emphasized that while technological advancements may eliminate some jobs, when implemented in an assistive manner, they can drive economic growth.

"In each tech, certain jobs will be eliminated, but if used in an assisted manner, we can grow the economy," according to him.

Drawing parallels to artificial intelligence, he explained that while automation may replace certain roles, it has the potential to create new industries and job 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 told me.

He urged startups to compare themselves to the best global standards.

"In the beginning, it looks impossible, but the moment the mind-set has been created, you'll start making progress," said the man. He also emphasized the importance of hiring people who are "smarter than you" and creating an environment that welcomes new ideas.

"That is how you solve the problem, not through freebies. "Our poverty will vanish like dew on a sunny morning," he concluded.

"Every startup that failed did not follow this," Murthy stated.

Murthy, an advocate of compassionate capitalism, criticized government subsidies, arguing that they should be linked to measurable outcomes.

"When subsidies are provided, you can ask for something in exchange. If you provide free electricity for the first six months, we'll see if children read more and perform better in school," he said.

Murthy advised entrepreneurs on 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.