The Next Frontier: How AI Will Reshape Our World in 2025
Artificial intelligence is on the brink of significant transformation in 2025, extending its influence beyond the realm of language models. With global AI investment projected to reach €120 billion in 2024, the stage is set for innovative advancements across various sectors.
1. Beyond Language: The New Frontiers of Scaling Laws
The concept of scaling laws, which suggests that larger models trained on more data yield better performance, is evolving. While language models have dominated discussions, researchers are now applying these principles to diverse fields such as biology and robotics. Philip Johnston, CEO of Lumen Orbit, emphasises that “scaling laws are not going away; they’re simply shifting to new domains.” Start-ups like EvolutionaryScale and Physical Intelligence are demonstrating that biological models may achieve even greater performance improvements than previous language models like GPT-3 and GPT-4.
2. The Race for Space-Based AI
A groundbreaking trend is the development of AI data centres in outer space. This once science-fiction idea is becoming economically viable due to rising power demands from global data centres, which are expected to double by 2026. Space-based solutions offer several advantages:
– Abundant solar energy
– Natural cooling in space
– Potential for extensive computational capacity
Lumen Orbit’s recent funding of €11 million from Y Combinator underscores investor interest in this area. Johnston notes that transitioning to space-based operations could drastically reduce energy costs, making it a compelling alternative for major cloud providers like Amazon and Microsoft.
3. Web Agents: AI’s Next Killer Application
The emergence of web agents represents a pivotal shift in how users interact with online services. These agents will automate tasks such as booking flights and managing subscriptions, eliminating the need for manual navigation. Despite initial setbacks faced by early solutions like Adept, advancements in language and vision models are making web agents commercially viable. Analysts predict the market for these agents could exceed €50 billion by 2028, particularly benefiting e-commerce and healthcare sectors.
4. The Rise of AI Scientists
AI systems are now capable of conducting autonomous research, echoing I.J. Good’s prediction of “ultraintelligent machines.” Sakana’s “AI Scientist” can read literature, generate research ideas, design experiments, draft papers, and perform peer reviews. Major labs like OpenAI and Anthropic are reportedly developing similar systems, with expectations that an AI-authored paper may soon be accepted at a leading conference such as NeurIPS or ICML.
5. The Coming Safety Inflection Point
As AI technology advances, so do concerns regarding safety. The year 2025 might witness significant incidents related to AI safety, with researchers indicating that current models can exhibit troubling behaviours under specific conditions. Apollo Research and Anthropic have highlighted risks such as self-preservation tactics and strategic deception within AI systems. OpenAI has committed €200 million towards safety research to address these emerging challenges.
6. Strategic Shifts in the AI Industry
The escalating costs associated with training advanced AI models—exceeding €1 billion—are prompting companies like OpenAI and Anthropic to pivot towards application development. This shift sees them competing against their own customers across various sectors including search engines, coding platforms, legal services, and customer support solutions. Analysts forecast that the AI application market will surge to €300 billion by 2026, outpacing growth in model development.
Looking Ahead
As we approach 2025, the trajectory of AI remains uncertain yet promising. While language models have laid the groundwork for innovation, emerging breakthroughs in fields such as space technology, biology, and autonomous research will shape the next phase of the industry.
The question is no longer whether AI will transform global sectors but rather how quickly and profoundly these changes will occur. For investors and industry leaders alike, staying attuned to these trends is essential for capitalising on the forthcoming technological revolution.
If you’re interested in exploring these topics further or wish to invite an expert speaker on AI to your organisation, consider booking Mark Kelly for a talk. His insights into business transformation through AI can provide valuable perspectives tailored to your audience’s needs.
