Zoho, in partnership with IDC, released the IDC State of SaaS Adoption in India Survey, revealing that businesses face revenue losses of up to ₹5.6 crore due to delays in SaaS implementation. These setbacks are primarily caused by integration challenges, security concerns, and technological barriers.
Recognizing these issues, Zoho is focused on delivering advanced technologies with minimal deployment delays. Additionally, the company is working on developing its own foundational AI models. In an exclusive conversation with indianexpress.com, Zoho CEO Mani Vembu shared insights into this initiative.
“We are building small language models specific to our products and the data we handle. These models are currently in the research and development stage, and we aim to launch them within this year, although there is no specific estimated time of arrival. Our approach is to first test the models with a few customers for accuracy, and based on the results, we will finalise the launch,” Vembu stated.
AI Integration Within Zoho’s Product Ecosystem
Unlike standalone AI chatbots such as ChatGPT or Gemini, Zoho’s upcoming small language model will be embedded within its product suite as part of a unified technology stack. “In the long run, we aim to develop more core technologies, including AI models that deliver real value to our customers,” Vembu explained.
While Zoho is working on its proprietary AI model, it will also continue integrating popular large language models, offering customers multiple options to enhance their workflows. The company has already implemented several AI-powered features within its SaaS offerings, including auto-correction and co-pilot functionalities. Additionally, it is developing AI-driven agents and exploring new automation-driven solutions.
Zoho’s Growing Market Presence
As businesses increasingly rely on automation to optimize efficiency and reduce errors, Zoho’s technology is designed to support these evolving needs. “Businesses want to achieve more with fewer resources and are increasingly looking for automation to enhance efficiency and minimize errors. Our technology enables them to do exactly that,” Vembu stated.
India is currently Zoho’s second-largest market, catering to both small and medium-sized businesses as well as large enterprises. The United States remains its biggest market. With digital transformation accelerating across industries, SaaS solutions are becoming integral to operations such as customer relationship management, human resources, and finance, positioning companies like Zoho at the forefront of this shift.
