Frugal AI is an exciting new concept that is all about making artificial intelligence smarter, leaner, and more sustainable. Imagine getting the best possible results from AI while using minimal resources, that’s Frugal AI in a nutshell. It is about building AI that blows your mind without blowing the budget or draining energy. We are talking powerful, cost-effective, and environmentally friendly AI that helps organisations do more with less by cutting costs and reducing energy consumption without sacrificing performance.
Frugal AI is especially relevant now when companies are eager to innovate but face tight budgets and increasing pressure to be sustainable. By optimising AI for efficiency, Frugal AI aims to reduce the resource requirements of AI systems, making them practical and affordable for more people and businesses, especially small and medium enterprises (SMEs).
But here is the catch: to make Frugal AI work, you need solid AI and Data Governance. Governance is what makes sure AI development is fair, secure, and trustworthy. All the essentials for building effective and sustainable AI solutions.
Jugaad Innovation
At a Frugal AI Workshop in Cambridge Clever Republic recently attended, we saw how governance is the backbone of Frugal AI. The concept thrives on Jugaad innovation: being creative and doing more with less. But without good AI and Data governance, things can get messy. Biases in data, poor data quality, and compliance headaches are just waiting to creep in if we are not careful.
Take this example: an AI model for detecting eye disease was trained on a limited dataset. Because it did not include enough examples of people with darker skin, it ended up being less accurate for them, approximately 60% compared to 73% for lighter-skinned patients. This happened because the data was not representative of everyone. AI and Data Governance steps in here, ensuring datasets are fair and inclusive so that everyone benefits equally from AI.
And it is not just about fairness. AI and Data Governance are game-changers for SMEs too. Many SMEs hesitate to adopt AI because they worry about risks, costs, and competing with big players. Good governance addresses these concerns by building trust, making the adoption process smoother, and protecting intellectual property.
Frugal AI is also about sustainability, innovation that saves resources and money while being good for the planet. We heard about tools like Sqwish’s Prompt Compression API, which slashes input costs by 91% and speeds up performance. But without governance, those cost savings might come at the expense of data security or ethical standards. Governance ensures that efficiency never compromises integrity.
Connecting the Dots with Frugal AI
At Clever Republic, we use our Connecting the Dots-approach to bring Frugal AI to life. In the context of Frugal AI, ‘Connecting the Dots’ means linking six key components: Data, Business Terms, Processes, Technology, People, and Policies.
Each of these dots plays a crucial role in making Frugal AI truly effective and impactful:
Data: High-quality, inclusive data is the backbone of Frugal AI, cutting down on the need to fix biases or errors later. Good governance keeps the data quality high and fair.
Business Terms: Clear definitions help align AI efforts with real business goals. In Frugal AI, this means delivering cost-effective, targeted solutions that make a genuine impact.
Processes: Streamlined processes mean less waste and more efficient AI development and deployment. Efficient workflows support the frugal mindset.
Technology: Using scalable, resource-efficient technology is key for Frugal AI. Governance helps pick the right tech to balance cost-effectiveness and quality.
People: Empowering data scientists, analysts, and business users ensures everyone can contribute effectively—making sure human effort is well spent and adding maximum value.
Policies: Policies provide the ethical and operational guardrails needed for data and AI use, aligning every effort with resource efficiency and compliance.
By connecting these dots, Frugal AI becomes more than just a cool technical concept—it becomes a comprehensive strategy that integrates every part of an organisation to achieve efficiency, sustainability, and inclusivity.
The big takeaway? Frugal AI has massive potential to transform industries with AI that is efficient, sustainable, and inclusive. But none of this happens without the right governance. At Clever Republic, we are here to help organisations set up the right governance frameworks to connect the dots between technology, business strategy, and sustainable impact.
Want to explore how Frugal AI and Data Governance can drive value for your business? Get in touch, and let Clever Republic help you take that next step.
Get In Touch
Fill out the form below and we will contact you as soon as possible!
