The launch of DeepSeek's AI model is stirring the AI landscape, but the real winners? EXL clients. Learn more from EXL's Chief Digital Officer.
DeepSeek is sparking major conversation across the AI ecosystem. With claims of matching or exceeding OpenAI's model performance at a fraction of the cost and being open source, this is a development the industry cannot ignore. At EXL, we see this as an inflection point for businesses adopting AI. Here's my perspective: 1. What's Happened? DeepSeek has introduced key advancements setting a new benchmark for AI: - Open-Source Architecture: DeepSeek's open-source model accelerates innovation by providing accessibility and flexibility. - Multi-Head Latent Attention (#MLA): This new attention mechanism reduces algorithm complexity from Quadratic to Linear, cutting GPU memory needs and lowering costs. - Mix-of-Expert (MoE) Architecture: DeepSeek improves MoE architectures like Mixtral, boosting reasoning capabilities and reducing training costs. These innovations make DeepSeek's model cheaper and more efficient, opening doors for widespread adoption. Open-source models like Meta's LLama, OpenAI, Gemini, and Claude will likely adopt these mechanisms, achieving similar capabilities at lower costs. 2. What Does This Mean? EXL Client Solutions Will Benefit As Foundational Models Evolve -DeepSeek reduces barriers to entry, enabling organizations to scale generative AI solutions. These advancements lower gen AI use case costs while increasing adoption, positively impacting GPU and Cloud growth. From General Purpose to Deep Industry-Specific Use Cases Impact -General-purpose LLMs like DeepSeek provide a foundation, but EXL's domain-specific solutions—like EXL's Insurance LLM—unlock their true potential through fine-tuning to deliver transformative outcomes. -EXL reduces LLM training costs at the application layer with techniques like latent attention while opening new AI markets. These improvements enable clients to adopt gen AI use cases and automation at significantly lower costs. Scarcity Driven Disruption is an Opportunity -Cost reductions in LLM development expand the total addressable market (TAM) for AI, driving demand for cloud solutions, GPUs, and AI platforms. MLA-driven efficiencies and EXL's expertise in leveraging private data and domain knowledge create impactful, cost-effective AI solutions. This positions EXL to unlock orchestration opportunities and new use cases that were previously too costly to automate. EXL thrives in moments of transformation. As a model-agnostic partner, we deliver tailored AI solutions that drive actionable insights and measurable value. #DeepSeek isn't just a technical milestone—it's a call to action for enterprises to embrace AI, scale automation, and lead the next wave of innovation. Rohit Kapoor, Arturo Devesa, Gaurav Iyer, Shekhar Vemuri, Vivek Vinod
Preeti Gupta
2mo
Keep growing
Data Analytics & AI Leader |Global Delivery| AI & Gen AI Strategy | AI Lab Solutions | Digital Transformation
2moVery well articulated. Thanks From a client’s/business perspective – what does this mean for them? * Cost-Effective AI Scaling – Deploy generative AI without the usual infrastructure headaches. DeepSeek makes it easier and more affordable to integrate AI into your business. * Faster AI Deployment – With reduced infrastructure demands, AI solutions can be up and running sooner, accelerating your digital/business transformation journey with minimal disruption. * Domain-Specific AI, enhanced – Organizations can leverage AI tailored to business needs for deeper insights and smarter automation. * Expanding AI’s Reach to New Possibilities – With DeepSeek’s capabilities and the strategy driven by the industry functions, many organizations can tackle complex automation challenges that were once cost-prohibitive. *Investing in AI That Grows With You – Staying ahead of AI advancements means your investments won’t just keep up with the industry but they’ll help you lead it. Bottom Line: DeepSeek isn’t just another AI breakthrough but it’s an opportunity for every business to drive cost efficiencies, accelerate AI-driven transformation and unlock new growth avenues with the right strategic AI approach.