Saturday, November 15, 2025

The Dawn of Industrial AI in 2025

I am not sure the association of ML & AI with the Industrial Revolution is adequate or proper!

The ML & AI revolution is much more of a grand leap of human civilization  than the Industrial Revolution! One can surely say that without the Industrial Revolution we would not have achieved what we have now!

"The eighth annual State of AI Report 2025 aims to reflect the trajectory of AI through a selection of significant work from the past 12 months. It declares 2025 to be the beginning of the industrial age of AI, noting that the barriers to the technology’s economic potential have shifted from technical limitations to matters of capital, politics, and physics. ..."

"Key takeways [too many?] from the 2025 Report include::
  • OpenAI retains a narrow lead at the frontier, but competition has intensified as Meta relinquishes the mantle to China’s DeepSeek, Qwen, and Kimi close the gap on reasoning and coding tasks, establishing China as a credible #2.
  • Reasoning defined the year, as frontier labs combined reinforcement learning, rubric-based rewards, and verifiable reasoning with novel environments to create models that can plan, reflect, self-correct, and work over increasingly long time horizons.
  • AI is becoming a scientific collaborator, with systems like DeepMind’s Co-Scientist and Stanford’s Virtual Lab autonomously generating, testing, and validating hypotheses. In biology, Profluent’s ProGen3 showed that scaling laws now apply to proteins too.
  • Structured reasoning entered the physical world through “Chain-of-Action” planning, as embodied AI systems such as AI2’s Molmo-Act and Google’s Gemini Robotics 1.5 began to reason step-by-step before acting.
  • Commercial traction accelerated sharply. Forty-four percent of U.S. businesses now pay for AI tools (up from 5% in 2023), average contracts reached $530,000, and AI-first startups grew 1.5× faster than peers, according to Ramp and Standard Metrics.
  • Our inaugural AI Practitioner Survey, with over 1,200 respondents, shows that 95% of professionals now use AI at work or home, 76% pay for AI tools out of pocket, and most report sustained productivity gains, evidence that real adoption has gone mainstream.
  • The industrial era of AI has begun. Multi-GW data centers like Stargate signal a new wave of compute infrastructure backed by sovereign funds from the U.S., UAE, and China, with power supply emerging as the new constraint.
  • AI politics hardened further. The U.S. leaned into “America-first AI,” Europe’s AI Act stumbled, and China expanded its open-weights ecosystem and domestic silicon ambitions.
  • Safety research entered a new, more pragmatic phase. Models can now imitate alignment under supervision, forcing a debate about transparency versus capability. External safety organizations, meanwhile, operate on budgets smaller than a frontier lab’s daily burn.
  • The existential risk debate has cooled, giving way to concrete questions about reliability, cyber resilience, and the long-term governance of increasingly autonomous systems.
..."

"... The business of AI finally caught up with the hype. The large labs and leading AI companies are now generating close to $20 billion in annual revenue. ...

This commercial reality has collided with infrastructure and geopolitics. Multi-gigawatt data centers like Stargate mark the start of the industrial era of AI, as the U.S., UAE, and China compete to build national compute backbones. Power and land are now as important as GPUs
In parallel, China’s DeepSeek, Qwen, and Kimi have closed the gap with GPT-5 across reasoning and coding, giving China a credible claim to second place in global AI capability. ..."

Safer (and Sexier) Chatbots, Better Images Through Reasoning, The Dawn of Industrial AI, Forecasting Time Series


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