The year 2025 is shaping up to be a game-changer for artificial intelligence (AI). By 2027, spending on AI data centers is expected to surpass $1.4 trillion, putting the pressure on the industry to deliver real results. Some believe the arrival of artificial general intelligence could revolutionize our lives this year. However, uncertainty lingers. Researchers warn that the impressive growth we’ve seen might be slowing down, and many businesses are still struggling to see a financial return from AI investment. Additionally, energy and infrastructure challenges could hamper further advancements.
Yet, it’s essential to remember the bigger picture. AI is already making waves in our world. We’ve only scratched the surface of what it can do. The technology brings both challenges and great potential, driving progress in science and accelerating research.
But AI isn’t the only field making strides. Exciting breakthroughs are happening in climate technology, life-changing weight-loss drugs, and even quantum computing. Here are some key developments to keep an eye on in 2025:
AI’s Hype Fades, But Its Impact Deepens
AI’s initial excitement is fading, and companies are facing challenges in making the most of generative AI. Reports suggest that advancements in core AI capabilities might be plateauing. The upcoming year is crucial for major AI developers as they work to make their trillion-dollar investments pay off with new automation tools. The success of these efforts will determine if the costs can be justified.
Still, AI’s overall influence is clear. In just the past year, AI has helped preserve indigenous languages, restore the voice of ALS patients, and reconstruct the epic of Gilgamesh. Advances in AI-designed drugs are anticipated to enter final trials this year, while it assists in breakthroughs across protein design, climate modeling, and brain research.
In 2025, watch how AI is set to revolutionize scientific research, potentially automating tasks like generating hypotheses and designing experiments. This could spark a wave of rapid innovation. Keep an eye on the rise of AI-enabled startups and new evaluation benchmarks that can help build trust in AI’s contributions to science.
The Accelerationist Agenda
If Donald Trump returns to office, we might see a move to relax AI regulations to encourage innovation and compete with China. Although this could promote innovation, it raises concerns for those focused on AI safety, including Trump’s ally Elon Musk. Expect more discussions around “defensive acceleration”—the idea that developing better technology can help address AI-related risks.
The upcoming AI Action Summit, following events in Bletchley Park and Seoul, will shift focus from safety concerns to practical risks and leveraging AI for public good in education, health, and environmental issues. Expect a clearer direction that emphasizes tangible outcomes rather than vague promises.
A Reckoning with AI’s Hidden Costs
As AI grows, so do concerns about its physical demands. In some regions, data centers are consuming a staggering 30% of energy grid capacity. To meet this rising demand, Microsoft plans to source electricity from the revived Three Mile Island nuclear plant. Many are looking into small modular reactors for energy, but scaling nuclear power is a slow process. AI’s energy consumption is even prolonging the use of coal plants, as seen in Omaha.
Water usage for cooling data centers is another significant issue. However, change could be on the horizon. The European Union is requiring data centers to disclose their energy and water consumption, which may promote discussions about reducing emissions and balancing resource needs as AI expands.
Deep Tech’s Decisive Moment
While AI is dominating headlines, other tech areas are also evolving quickly and deserve our attention.
In 2025, we will see a shift in innovation investments. The focus is moving away from quick-growing digital platforms toward more foundational scientific and engineering breakthroughs in fields like synthetic biology, advanced materials, and quantum computing. Although these technologies require substantial investment and longer development timelines, their potential for transformative change is significant. Deep tech’s share of venture capital funding has doubled over the last decade, which indicates a strategic shift.
With pressing global challenges and better support for these technologies, we are entering possibly deep tech’s pivotal moment. Governments are eager to boost their deep-tech ecosystems, aiming for a blend of industrial and security policies in today’s uncertain climate. Collaboration among research institutions, businesses, and governments will be critical for nurturing long-term innovations.
Synthetic Biology’s Reality Check
The synthetic biology sector, which modifies microbes to produce everything from medicines to materials, is also facing reality checks similar to AI. In 2024, the industry’s three largest firms faced bankruptcy and layoffs, causing investors to demand a shift from lofty goals to practical solutions.
The future of this field lies in specialization and real-world applications rather than grand promises. In pharmaceuticals, for example, biological therapies now account for a quarter of new drug approvals in the U.S. and generate a large portion of global pharmaceutical revenue. Significant research continues to demonstrate the field’s groundbreaking potential, such as engineers at Penn State University creating bacteria that can detect TNT in soil—highlighting environmental monitoring capabilities. Expect synthetic biology in 2025 to follow a path of “less hype, more substance” like that of AI.
GLP-1 Drugs: A Health Revolution in the Making
Another exciting area to watch is GLP-1-based weight-loss drugs, which could dramatically impact society as their use spreads. By 2025, semaglutide, found in drugs such as Ozempic, will become available in generic forms in key markets, increasing global access. Ongoing clinical trials will be vital for understanding long-term effects like muscle loss.
Current users of GLP-1 drugs are consuming about 8% less food, a trend that could reshape healthcare and the food industry. These drugs are also effective in addressing cardiovascular issues and kidney disease, with potential tests for their benefits against Alzheimer’s and addiction.
A Climate-Tech Tipping Point
According to the International Energy Agency, by 2025, solar-power generation combined with battery storage is expected to become cheaper than coal power in China and new gas plants in the U.S. This major shift marks an important turning point for clean energy usage. Meanwhile, challenging-to-decarbonize sectors are making headway in carbon capture, green hydrogen, and new storage technologies like sodium-ion batteries.
As the early excitement around AI wanes, a more comprehensive technological transformation is underway. From AI-driven scientific advances to breakthroughs in health and clean energy, 2025 might just be the moment when we move beyond speculation and begin to see these innovations reach their true potential.
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