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Powered by India’s small businesses, UK fintech Tide becomes a TPG-backed unicorn

Chase by Chase
September 25, 2025
Reading Time: 3 mins read
0

# The Silent Revolution: Shifting from Model-Centric to Data-Centric AI

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For the better part of a decade, the narrative of AI progress has been a story of scale. We’ve been captivated by a model-centric arms race, where success was measured in billions of parameters, layers of neural networks, and marginal gains on academic benchmarks. Groundbreaking architectures like Transformers and massive models like GPT-4 have rightfully earned their headlines. Yet, for practitioners in the field, a subtle but profound shift is underway. The focus is pivoting from the complexity of the model to the quality of the data that fuels it. Welcome to the era of data-centric AI.

This isn’t to say that model architecture is no longer important. It is. But we are increasingly hitting a point of diminishing returns. Squeezing out another fraction of a percentage point in accuracy by doubling a model’s size is often computationally prohibitive and practically unsustainable. More importantly, it often fails to address the fundamental problem of brittleness. A model, no matter how sophisticated, is only as good as the data it learns from. If that data is noisy, poorly labeled, or fails to represent real-world diversity, the model will inherit these flaws.

This is the core challenge that the data-centric paradigm aims to solve.

—

### The Anatomy of the Data-Centric Approach

So, what does it mean to be “data-centric”? It’s a philosophical and engineering shift. Instead of treating your dataset as a static, immutable asset and endlessly tweaking model hyperparameters, you hold the model architecture relatively constant and systematically engineer your data.

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This involves several key practices:

* **Systematic Error Analysis:** The process begins not with code, but with deep analysis. Where is the model failing? Is it consistently misclassifying a specific type of image? Is it struggling with a particular dialect in audio transcription? By identifying patterns in the model’s errors, you can pinpoint deficiencies in the training data. For example, if a self-driving car’s perception model fails to identify pedestrians at dusk, the solution isn’t necessarily a more complex model, but a richer dataset with more labeled examples of pedestrians in low-light conditions.

* **Programmatic Labeling and Weak Supervision:** The bottleneck of manual labeling is a major hurdle. Data-centric approaches leverage programmatic techniques to create and refine labels. This can involve using heuristics, rules, or even other models to generate “weak” labels for vast amounts of data. Tools and frameworks like Snorkel have demonstrated that combining and denoising multiple weak supervision sources can produce training sets that rival, and sometimes exceed, the quality of hand-labeled data at a fraction of the cost and time.

* **The Data Flywheel:** Production AI is not a one-and-done process. The most robust systems create a virtuous cycle, often called a data flywheel.
1. A model is deployed to production.
2. It encounters real-world data, inevitably making mistakes on edge cases it hasn’t seen before.
3. These difficult or misclassified examples are flagged and sent back for review.
4. These newly curated examples are added to the training set.
5. The model is retrained on the improved, more comprehensive dataset.
This iterative loop ensures the model continuously improves and adapts to the complexities of its operational environment.

* **Synthetic Data Generation:** When real-world data is scarce, expensive, or bound by privacy constraints, we can now generate it. Using technologies like Generative Adversarial Networks (GANs) or diffusion models, we can create photorealistic images, structured text, or complex simulations to fill gaps in our training sets. Need more examples of a rare manufacturing defect or a specific type of financial fraud? Synthetic data can provide a nearly infinite supply, allowing models to train on a far more diverse and complete dataset than would otherwise be possible.

—

### Conclusion: Engineering Data is Engineering the Future

The transition to a data-centric mindset is not just a trend; it’s a maturation of the field. It moves AI development from an artisanal, research-driven practice to a systematic, repeatable engineering discipline. It forces us to acknowledge a fundamental truth: data is not just something you collect; it’s something you build, refine, and manage with the same rigor as source code.

The most successful AI teams of the next decade won’t be the ones with the largest model, but the ones with the most sophisticated data engine. They will be the teams that ask not just, “What architecture should we use?” but “What data do we need to solve this problem reliably?” By placing data at the center of our development lifecycle, we move beyond building models that work in the lab and start building AI systems that thrive in the real world.

This post is based on the original article at https://techcrunch.com/2025/09/21/powered-by-indias-small-businesses-uk-fintech-tide-becomes-a-tpg-backed-unicorn/.

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