This week in AI: WSO2’s AI bet, Big Tech profits, OpenAI’s study mode
From Colombo-born WSO2’s journey of building world class software to OpenAI rolling out a learning tool for students, AIStory brings a recap of major developments and emerging trends in the sector this week.
From Colombo-born WSO2’s journey of building world class software to OpenAI rolling out a learning tool for students, AIStory brings a recap of major developments and emerging trends in the sector this week.
Here’s list of key stories:
Featured news
How Colombo-born SaaS firm WSO2 is building world-class software outside Silicon Valley
Miles away from the glare of Silicon Valley’s gleaming skyscrapers and Bay Area’s romanticised unicorns—but closer to the startup hub of Bengaluru and the SaaS epicentre of Chennai—a quiet but resolute tech revolution is unfolding in the city of Colombo.
The palm-tree-lined streets of Sri Lanka’s capital may seem like an unlikely setup, but that’s just a deceptive facade.
A robust tech ecosystem is developing in Colombo—thriving and competing with the global best. And the seeds of this were sown not now, but 20 years ago, when WSO2 set up shop in the city.
The tech firm’s boldest bet was building an enterprise middleware stack, which has now become the backbone for some of the world's largest corporations. WSO2's API management tools and AI solutions have found their way into the digital infrastructure of Jio Platforms, Wipro, and Samsung, all after it chose to plant its roots in the island nation.
AI is changing the game, but the human element still matters: Microsoft India Talent Acquisition Head
Artificial intelligence may be evolving at breakneck speed, but in talent acquisition, one truth still holds: only humans can truly judge humans—at least for now.
Sure, machines can screen out a lot quicker than humans, and yes, they can whittle down hundreds of thousands of CVs to the top 1% of candidates. Yet, every time an algorithm decides who makes the shortlist, we ask: “Do we have control over how it’s doing it? Is there a bias, ethics, and all? I would say no.”
That perspective comes from Daryl Pinto, India Head of Talent Acquisition at Microsoft—someone who has seen AI become a household name. Yet, he says, “we still rely on the human element.” It’s that spark of empathy, the ability to understand whether someone will add to your culture—not just fit it—that no line of code can replicate.
Tata Steel bets on AI to become the ‘Zepto and Blinkit’ for the industry
Steel and artificial intelligence (AI) seem to be opposite ends of a spectrum, but for the 118-year-old iconic company, Tata Steel, they just go hand-in-hand. The company plans to use tech to accelerate steel delivery, from weeks to days.
In an interview with EnterpriseStory, Tata Steel Chief Information Officer (CIO) Jayanta Banerjee says, “We are now trying to become the Zepto, Zomato or Blinkit of the world. Being a steel company, I will not be able to deliver steel to you in 10 minutes, but through our digital platform Aashiyana I can deliver steel to you in 72 hours.”
The company is well-positioned to meet its lofty goals, boasting a crude steel capacity of 35 million tonnes per annum with plants located across India, the UK, the Netherlands, and Thailand. It has around 169 companies under its network.
Latest news
Meta soars on AI-driven ad boom, posts strong Q2 results
Facebook parent Meta rode a wave of AI-driven digital advertising demand to deliver strong revenue and profit growth in the second quarter of 2025.
“On advertising, the strong performance this quarter is largely thanks to AI unlocking greater efficiency and gains across our ads system,” Meta Founder and Chief Executive Officer, Mark Zuckerberg, said during the earnings call.
The California-based firm posted a 36% year-over-year surge in Q2 net profit, touching $18.3 billion. Revenue climbed 22% YoY to $47.5 billion. Both figures marked the second-highest levels in the past nine quarters, underscoring strong financial momentum.
Microsoft wraps FY25 on a high, riding AI and cloud wave
Microsoft Chairman and CEO Satya Nadella emphasised that the company is going through “a generational tech shift with AI” as it closed fiscal year 2025 on a high note. The firm clocked strong top- and bottom-line growth driven by AI-powered momentum across its cloud services.
Strong cloud and AI-driven results boosted investor sentiment, sending Microsoft shares to rise over 8% in after-hours trading and positioning the company to become the second ever to reach a $4-trillion market cap. If the rally holds, Microsoft will join chipmaker Nvidia, which crossed the $4-trillion mark earlier this month.
OpenAI wants ChatGPT to help students learn, not just look up answers
OpenAI has rolled out a new ChatGPT feature called ‘study mode’, turning the chatbot from a simple answer machine into an interactive learning partner, marking a notable development in how AI can support education.
“Study mode is designed to help students learn with ChatGPT, not just get answers. It guides users step by step, asking thoughtful questions and adapting to each student’s goals and skill level - much like a tutor would,” said Leah Belsky, Vice President - Education, OpenAI, in a LinkedIn post.
Freshworks raises FY25 guidance on AI momentum, reports 18% rise in Q2 revenue
Freshworks on Wednesday raised its full-year revenue guidance on the back of increasing customer adoption. The company now expects FY25 revenue to be between $822.9 million and $828.9 million.
The US-listed firm had in April said it expected FY25 revenue to be within the range of $815.3 million to $824.3 million. It also said it is expecting its adjusted net income from operations to be between $153 - $157 million, compared to prior guidance of $139.5 - $147.5 million.
Edited by Jyoti Narayan