Happy New Year…

You might have noticed we miss-scheduled the newsletter this week.. Guess that’s what makes us human.

Anyway, welcome to 2025 and the future of AI. 2024 was a game-changer for AI, transforming industries and raising new ethical and regulatory questions. Here's what shaped the year:

1. Generative AI dominated

Generative AI reached new heights—and pitfalls. From OpenAI’s reasoning-driven GPT-o1 and multimodal o3 models to ethical controversies like visual plagiarism with Midjourney and abuse of Stable Diffusion, the duality of progress and misuse was on full display.

2. Rise of Open-Source

Meta’s Llama 3 series and Nvidia’s Nemotron-70B fueled the open-source boom, providing accessible, cost-efficient models. Open-source projects from France’s Mistral and others brought innovation to enterprise and individual developers alike.

3. Debates around ethics deepen

Issues like copyright violations, algorithmic bias, and the potential for misuse drove calls for regulation. The EU AI Act emerged as a global benchmark, while creators demanded fair compensation for the data used to train AI models.

4. AI redefines work and Education

AI’s impact on jobs grew as automation handled repetitive tasks, sparking debates on workforce displacement. In education, coding instruction shifted to debugging and problem-solving, as AI tools became integral in classrooms.

5. Agentic AI and Real-World Applications

“Agentic AI” transitioned from a buzzword to reality, with Salesforce’s Agentforce 2.0 and Google’s Project Astra transforming enterprise productivity. Real-world deployments in traffic management (Bengaluru) and automated customer service showcased AI’s operational impact.

What’s next in 2025?

Expect even smarter, reasoning-capable AI models, increased focus on regulation, and the rise of AI-generated content across industries.

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This Week in AI

• AI Robots and gadgets at the Consumer Electronics Show (CES) 2025

• Check out German Bionic’s new exoskeleton

• Anthropic to raise 2 Billion dollars