New Delhi, June 30 -- Enterprises are increasingly expected to build and own small language models (SLMs) trained on proprietary data rather than rely solely on rented foundation models as they seek greater control over intellectual property and regulatory risks, according to Rohit Kapoor, chairman and chief executive of ExlService Holdings, Inc., a Nasdaq-listed analytics and digital solutions company.

"We're going to see more evolution of small language models and specialized language models that enterprises will want to own. Anytime you're renting a model from somebody else and the regulation changes, your entire business can be put at risk," Kapoor said.

This regulatory anxiety intensified after 12 June, when the US government abrup...