Frontier models leapt forward, search became an answer machine, chips turned political, and regulators finally put dates on the rules, while India pushed 'sovereign AI' and cracked down on deepfakes. (Image credit: 'AI')
Artificial intelligence
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Moneycontrol26-12-2025, 06:01

2025: AI Transforms from Feature to Global Infrastructure, Reshaping Power

  • AI models like GPT-5 and Claude 4 advanced from conversational tools to capable "junior operators" executing complex tasks.
  • Google's AI Overviews shifted search into a direct answer engine, sparking publisher backlash over traffic and content use.
  • China's open-source AI models gained global prominence, democratizing access and making chips and data centers new chokepoints.
  • AI compute became a geopolitical battleground, with chip supply chains and export controls central to national security.
  • AI regulation moved from abstract discussions to concrete timelines, with the EU AI Act and US state laws setting precedents.

Why It Matters: 2025 marked AI's shift from a mere feature to foundational infrastructure, deeply impacting global power.

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