Current AI Model Inadequacies: Implications for the Global South

(Prateek Tripathi – Observer Research Foundation) The current Artificial Intelligence (AI) revolution was largely driven by the development of the transformer model architecture in 2017 and the subsequent creation of Large Language Models (LLMs). The majority of ensuing progress in AI has largely hinged on LLMs, including generative AI (GenAI), diffusion models, and Agentic AI. The seemingly remarkable progress made by these models has led to a multitude of claims by AI developers and experts, ranging from mass potential layoffs to the supposedly near-term prospect of Artificial General Intelligence (AGI). On closer inspection, however, most of these arguments seem to fall apart, with AI adoption and automation witnessing widespread failure across multiple domains and use cases. Moreover, the current hyperscaling model of AI development is gradually becoming unsustainable due to ever-increasing energy and resource requirements, further compounded by the massive debts being incurred by AI companies and hyperscalers pursuing it. This should serve as a wake-up call for the Global South, which is in the process of honing and deploying its own sovereign AI capabilities. In the aftermath of the IndiaAI Impact Summit 2026, these issues further necessitate a reassessment of the Global South’s current development model and underscore the need to retain its human-centric roots rather than relying on its increasingly AI-centric propensities. – Current AI Model Inadequacies: Implications for the Global South