Abhivardhan on Global AI "Power Play" @ the CUTS Institute

We congratulate the CUTS Institute for Regulation and Competition and CUTS Global Affairs for conducting a fantastic seminar on the "Global Power Play in AI Regulation" on September 18, 2025.

Our Founder and Managing Partner, Abhivardhan had intervened in the session, with an AI industry perspective.

His intervention was based on a simple understanding that the LLM ecosystem has two major problems:

1️⃣ Their business value was inflated, and it is deflating steadily, even if there is no "LLM Bubble" or "AI Bubble" per se.

We had pointed out the market impact of AGI hype in our analysis in August 2025 as well: https://www.indicpacific.com/post/examining-legal-and-economic-risks-around-agi-hype-doomerism-post-gpt-5

2️⃣ The technological behaviour of LLMs is unchangeable, which means that the technical deficiencies that these systems have, including hallucinations, would just not "go away".

That creates a problem where 1 segment of AI is overinflated, and second, it has no economic impact to affect jobs by any measure. It can impact money decisions, for sure.

Abhivardhan was also quoted by the CUTS Institute and then by KNN India: https://knnindia.co.in/news/newsdetails/global/experts-call-for-tailored-global-ai-regulation-amid-geopolitical-challenges

In his social media remarks praising the CUTS Institute, Abhivardhan had remarked:

The LLM ecosystem is really subject to huge saturation, and that will create market and talent credibility challenges. My point was simple: the AI community is globally decentralised and regulatory arbitrage around AI might just cool off due to LLM tech failures. So has India lost the AI race? I don't think so yet. While "Sovereign AI" initiatives should continue, I don't think we have lost. But dynamics will be rapid once the LLM "banner" falls off. However, investors have made a lot around data outflows, for sure thanks to data labelling and other associated practices.