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AI models do not have to be huge or expensive by definition, IBM CEO Arvind Krishna argued at the company’s Think 2025 conference in Boston. His proposal is to use smaller models tailored to specific business tasks alongside larger general-purpose systems—not to replace every large model. Whether that approach is better for a particular business depends on how well a model performs the work and what capabilities, cost, speed and deployment options it requires.

What did Arvind Krishna say about AI model size?

“There is no law of computer science that says that AI must remain expensive and must remain large,” Krishna said at IBM Think 2025. ITPro reported the remark on May 7, 2025, and it also appears in CRN’s event transcript. ITPro’s report and CRN’s transcript record his case for smaller, purpose-built models.

Krishna argued that a model designed for a particular business use case and tuned to relevant enterprise data can be faster and less costly to run, while offering more flexibility about where it is deployed. IBM’s Granite family is one example of the company’s investment in that approach. Those benefits are IBM’s and Krishna’s claims; the cited event coverage does not independently establish that smaller models are generally more accurate or cheaper in practice.

Smaller models are meant to complement larger ones

Krishna described smaller models as an addition to the AI toolkit, not a universal substitute for larger systems: “It’s not a substitute for the larger models. It’s an ‘and’ with the larger models.” A business might choose a compact model for a well-defined task and use a larger general-purpose model where the work calls for broader capabilities. Which option makes sense depends on the specific task and the model’s demonstrated performance.

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At the keynote, Krishna contrasted models in the 3-, 8-, 13- and 20-billion-parameter range with models in the 300- or 500-billion range. These were illustrative figures from his remarks, not a survey of the current market or a direct comparison of particular models.

Why model size alone does not settle the question

Smaller models can reduce resource demands, but parameter count by itself does not tell a business whether a model is suitable. Efficiency techniques also affect what resources a model needs. In its analysis of DeepSeek, IBM explains that Multi-Head Latent Attention reduces the size of the key-value (KV) cache, helping lower memory use. The same IBM article discusses remaining compute barriers and trade-offs, including weaker function-calling capability and safety-alignment concerns.

Those examples illustrate why an efficient model is not automatically the right model. For each candidate, check its results on the intended work, along with the operating constraints and capabilities the application depends on:

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  • Task performance: Test the model on representative examples from the business task rather than assuming size predicts quality.
  • Running cost and speed: Compare inference cost and latency under the expected workload.
  • Compute and memory: Consider what the model and its efficiency techniques require in the intended environment.
  • Deployment and data constraints: Check whether the model can run where the organization needs it and work with the relevant data under its governance requirements.
  • Required behavior: Evaluate function calling, safety and other capabilities that matter to the application.

At Think 2025, Krishna also said that “99% of all enterprise data has been untouched by AI.” That is his keynote assertion, as recorded by CRN, not an independently verified industry statistic in the cited coverage. He connected the opportunity to bringing AI to business data, but the figure should not be treated as a neutral measurement.

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What the accuracy claim does—and does not—show

Krishna said smaller models are “now more accurate than larger models.” The available CRN transcript does not specify the benchmark, tasks, model versions or evaluation method behind that comparison. It therefore records his claim, but does not establish that small models are generally more accurate. To decide between models, a business needs evidence tied to its own task and requirements.

Krishna framed the shift as a move from experimentation toward practical deployment: “The era of AI experimentation is over. Success is going to be defined by integration and business outcomes.” That is the strategic case for matching models to work that organizations actually need done—not proof that a particular model size will deliver a particular result.

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What IBM’s Think 2025 message means for businesses

IBM’s argument is that businesses should not assume every AI use case requires the largest available general-purpose model. A smaller model may be worth evaluating when the task is narrow, the organization can test it on relevant data, and its cost, speed and deployment characteristics suit the application. Larger models remain part of the picture when their broader capabilities better fit the work.

The practical decision is not “small or large” in the abstract. It is whether a candidate model meets the application’s performance, cost, latency, infrastructure, deployment, data-governance and capability requirements. Krishna’s keynote makes the case for considering more options; it does not establish a universal winner.

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