Infosys co-founder NR Narayana Murthy recently voiced his concerns about the current hype surrounding artificial intelligence (AI) in India. Speaking at TiEcon Mumbai 2025, Murthy criticized the exaggerated claims about AI and emphasized that innovation and job creation, rather than freebies, are the key to addressing poverty.
Murthy pointed out that much of what is being called AI today is, in fact, nothing more than conventional algorithms. “I see that most of the so-called AI is silly and old programming,” Murthy remarked. However, he acknowledged that unsupervised algorithms, including deep learning and neural networks, possess far greater potential to mimic human capabilities and drive future progress.
While Murthy recognized that technological advancements like AI could lead to the elimination of certain jobs, he also believed that, when applied correctly, such technologies could lead to economic growth. Drawing a comparison with automation, he explained that though some roles might be replaced, AI has the potential to create new industries and expand existing ones. “AI, for example, if used in autonomous vehicles or hospital care, will lead to the expansion of those companies and create jobs,” Murthy explained.
In his speech, Murthy also offered advice to startups, urging them to benchmark their operations against global standards. “In the beginning, it looks impossible, but the moment the mindset has been created, you’ll start making progress,” he said. He encouraged entrepreneurs to hire talent that is “smarter than you” and foster a workplace that values new ideas and innovation.
Murthy’s advice didn’t stop at business strategy. He also criticized the approach of giving away subsidies and freebies as a solution to poverty. “Our poverty will vanish like dew on a sunny morning” if innovation, not freebies, is the focus, he said. He further explained that when subsidies are provided, there should be accountability: for example, offering free electricity for the first six months could be tied to measures like improving children’s performance in school.
Murthy also emphasized the importance of gaining respect and trust from all stakeholders, including clients, staff, investors, and authorities. He highlighted that thinking in terms of benefiting society could lead to long-term success. “If you think in terms of doing good to society, you’ll get repeat business, employees will join, investors will stay, vendors will support you in tough times, and politicians will want you to succeed,” he concluded.
In a time when AI is a buzzword, Murthy’s call for a balanced, thoughtful approach to technological progress and economic development stands as a reminder that true growth lies in innovation, not shortcuts.
