While most artificial intelligence tools today struggle with the issue of “hallucination”—confidently delivering factually incorrect outputs—Vexoo Labs is charting a different course by building trust-first AI solutions tailored for India’s manufacturing MSMEs. The deep-tech firm claims its compact, reasoning-first models are designed for real-world reliability, not just flashy demos.
🧠 Hallucination: A Liability for MSMEs
According to Ajay Kumar, Senior Business Leader and AI Evangelist at Vexoo Labs, the global AI boom has overlooked a critical flaw: accuracy.
“For India’s MSMEs, where decisions have direct operational and financial consequences, hallucinations aren’t just a flaw—they’re a liability,” Kumar said at the Super AI 2025 conference.
He emphasized that most AI platforms are built atop general-purpose language models that prioritize scale and speed over factual correctness—an approach ill-suited for the data-heavy, high-stakes environments of small and mid-sized manufacturers.
🏭 Built for Bharat: Compact Models, Local Execution
Vexoo Labs’ AI architecture is optimized for Tier-II and Tier-III cities like Rajkot, Tiruppur, Coimbatore, Ludhiana, and Bhiwadi, where India’s industrial backbone thrives. Their compact models run locally, eliminating the need for heavy cloud infrastructure and ensuring fast, accurate, and traceable outputs.
“We didn’t build a shinier chatbot. We set out to solve the core flaw in AI itself—hallucinations,” said Aditya Vardhan, Co-Founder of Vexoo Labs.
🌱 Real-World Impact and Vision
The company’s AI tools are already resonating across enterprise and public sector conversations, offering solutions for data interpretation, predictive maintenance, and operational optimization. As India eyes a $5-trillion economy, Vexoo Labs believes the digital leap will come not from billion-parameter models, but from trustworthy intelligence embedded in grassroots manufacturing.
Stay tuned for more updates on India’s AI innovation landscape.
