Dell to focus on AI factory, GenAI services to grow in India

Dell Technologies is sharpening its focus on providing artificial intelligence (AI) and generative AI (GenAI) solutions in India, in alignment with global trends and customer needs.

The computer company plans to embed AI in its products and services and deliver "optimal infrastructure" to host AI workloads, which includes the Dell AI Factory in partnership with Nvidia, Alok Ohrie, president and managing director of Dell Technologies, India, said in an interview.

OpenAI’s ChatGPT, according to Ohrie, has “opened up everybody's mind to start looking at GenAI as a companion, an assistant, a partner and not so much as a technology that will take away jobs.”

But he acknowledged that GenAI can be a double-edged sword, one that can disrupt current systems while simultaneously transforming businesses and society. According to Ohrie, many companies are struggling with GenAI implementation due to a lack of skilled talent as well as challenges in handling data from diverse sources.

“About 95% of businesses want to embrace GenAI, but 52% don’t know where to start,” he said, citing a Dell study.

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GenAI is being increasingly adopted to automate repetitive tasks that require decision-making beyond regular AI's capabilities, particularly in the finance sector for fraud detection and to sift through requests for proposals (RFPs) for major projects.

It’s also gaining traction in content creation, HR queries, and code generation, enabling individuals to focus on higher-value, meaningful work, noted Ohrie, adding, "We are implementing a lot of POCs (proofs-of-concept). But there isn't a ready-made pool of talent.”

Helping companies

Ohrie acknowledged that hallucinations, integrity, and governance in GenAI models remain significant concerns. Hallucinations refer to AI models generating incorrect or misleading results. But he underscored that while some foundation models come with extensive large language model (LLM) libraries, there are companies that are willing to bear the risk.

"One of our ecosystem partners, H2O.ai, a Singapore-based company, guarantees that if their model is used within certain parameters, it won’t produce misaligned or disruptive responses," he added.

The Dell AI Factory, too, according to Ohrie, can support businesses on the AI journey. The solution integrates Dell’s infrastructure with Nvidia's graphic processing units (GPUs) and AI capabilities, and also offers a GenAI solution for Digital Assistants, helping organisations develop advanced AI-driven conversational experiences.

Also Read: Dell should keep shining in Nvidia’s halo

Ohrie added that many companies don't need to run LLMs but can train their data with small language models (SLMs), deployable on high-end laptops and workstations like “Dell's Co-pilot + AI PCs--XPS 13 and the Inspiron 14 Plus that were launched in India this June, and which IT-ITeS companies are eagerly adopting.”

Sanchit Vir Gogia, founder and CEO of Greyhound Research, said the Dell AI Factory with Nvidia does well to build on Dell's hardware expertise atop Nvidia's GPUs and AI software. He adds, though, that the "AI-on-device" opportunity will be up for grabs shortly, and the winner will be the one that allows the most energy-efficient and ethical use of AI on the device.

Gogia added that unlike its peers, Dell is still a founder-run firm, which is now passionate about AI.

"Michael Dell made a bold move in the past when he took the company private to rejig the Dell, EMC and VMware portfolios and be better prepared to capture a new market opportunity. With a precedent as tall as that, it’s hard to imagine Michael Dell not making yet another bold move to make a mark in the world of AI," he said.

Also Read: Errors, high cost among reasons GenAI not moving beyond concept stage

Ohrie said the next five years will be pivotal for building AI skills in India, and he hopes Dell will play a key role in this transformation. He emphasised that as India strengthens platforms like the Unified Payments Interface (UPI), Open Network for Digital Commerce (ONDC), Digilocker, and Healthstack, while building new platforms like the Agri Stack, the need for robust IT infrastructure will only increase.

Ohrie underscored that while India is growing at a “scorching pace, and rapidly deploying platforms and applications, the country’s IT infrastructure and spending still lags countries like Japan, which India may soon overtake in terms of GDP.

But “India’s IT and product services spend last year, at 0.18% of GDP, significantly trails Japan’s 0.35% during the same period. To achieve the country’s goal of becoming a $5 trillion economy, India must bridge this gap,” he said.