IBM CEO Arvind Krishna emphasizes that the generative AI landscape has matured, with enterprises moving from experimentation toward a focus on real business value. During IBM's 2025 conference, Krishna noted that while larger AI models served their purpose, businesses are now prioritizing smaller, domain-specific models that are tailored to solve specific challenges and effectively utilize previously untapped internal data. This transition is driven by a need for improved productivity and the realization that not all AI is suited for enterprise applications, with 99% of enterprise data remaining untouched by AI.
AI has moved from experimentation to a focus on unlocking business value; businesses are now concerned with use-cases and scaling leveraging AI, marking a shift in approach.
Smaller, domain-specific AI models are essential for enterprises to efficiently harness their internal data and address specific business challenges, departing from the previously favored larger models.
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