In the event you learn the information about AI, chances are you’ll really feel bombarded with conflicting messages: AI is booming. AI is a bubble. AI’s present strategies and architectures will preserve producing breakthroughs. AI is on an unsustainable path and wishes radical new concepts. AI goes to take your job. AI is usually good for turning your loved ones pictures into Studio Ghibli-style animated pictures.
Chopping by means of the confusion is the 2025 AI Index from Stanford College’s Institute for Human-Centered Synthetic Intelligence. The 400+ web page report is filled with graphs and information on the subjects of R&D, technical efficiency, accountable AI, financial impacts, science and medication, coverage, schooling, and public opinion. As IEEE Spectrum does yearly (see our protection from 2021, 2022, 2023, and 2024), we’ve learn the entire thing and plucked out the graphs that we expect inform the true story of AI proper now.
1. U.S. Firms Are Out Forward
Whereas there are a lot of other ways to measure which nation is “forward” within the AI race (journal articles revealed or cited, patents awarded, and many others.), one easy metric is who’s placing out fashions that matter. The analysis institute Epoch AI has a database of influential and essential AI fashions that extends from 1950 to the current, from which the AI Index drew the knowledge proven on this chart.
Final yr, 40 notable fashions got here from the United States, whereas China had 15 and Europe had 3 (by the way, all from France). One other chart, not proven right here, signifies that the majority of these 2024 fashions got here from trade reasonably than academia or authorities. As for the decline in notable fashions launched from 2023 to 2024, the index suggests it could be as a result of the growing complexity of the expertise and the ever-rising prices of coaching.
2. Talking of Coaching Prices…

Yowee, however it’s costly! The AI Index doesn’t have exact information, as a result of many main AI firms have stopped releasing details about their coaching runs. However the researchers partnered with Epoch AI to estimate the prices of a minimum of some fashions primarily based on particulars gleaned about coaching period, sort and amount of {hardware}, and the like. The most costly mannequin for which they have been in a position to estimate the prices was Google’s Gemini 1.0 Extremely, with a wide ranging value of about US $192 million. The final scale up in coaching prices coincided with different findings of the report: Fashions are additionally persevering with to scale up in parameter depend, coaching time, and quantity of coaching information.
Not included on this chart is the Chinese language upstart DeepSeek, which rocked monetary markets in January with its declare of coaching a aggressive massive language mannequin for simply $6 million—a declare that some trade consultants have disputed. AI Index steering committee co-director Yolanda Gil tells IEEE Spectrum that she finds DeepSeek “very spectacular,” and notes that the historical past of pc science is rife with examples of early inefficient applied sciences giving solution to extra elegant options. “I’m not the one one who thought there can be a extra environment friendly model of LLMs sooner or later,” she says. “We simply didn’t know who would construct it and the way.”
3. But the Value of Utilizing AI Is Going Down

The ever-increasing prices of coaching (most) AI fashions dangers obscuring a number of constructive developments that the report highlights: {Hardware} prices are down, {hardware} efficiency is up, and vitality effectivity is up. Which means inference prices, or the expense of querying a skilled mannequin, are falling dramatically. This chart, which is on a logarithmic scale, exhibits the development by way of AI efficiency per greenback. The report notes that the blue line represents a drop from $20 per million tokens to $0.07 per million tokens; the pink line exhibits a drop from $15 to $0.12 in lower than a yr’s time.

Whereas vitality effectivity is a constructive development, let’s whipsaw again to a damaging: Regardless of good points in effectivity, general energy consumption is up, which signifies that the information facilities on the heart of the AI growth have an unlimited carbon footprint. The AI Index estimated the carbon emissions of choose AI fashions primarily based on elements comparable to coaching {hardware}, cloud supplier, and site, and located that the carbon emissions from coaching frontier AI fashions have steadily elevated over time—with DeepSeek being the outlier.
The worst offender included on this chart, Meta’s Llama 3.1, resulted in an estimated 8,930 tonnes of CO2 emitted, which is the equal of about 496 People residing a yr of their American lives. That huge environmental influence explains why AI firms have been embracing nuclear as a dependable supply of carbon-free energy.
5. The Efficiency Hole Narrows

The USA should have a commanding lead on the amount of notable fashions launched, however Chinese language fashions are catching up on high quality. This chart exhibits the narrowing efficiency hole on a chatbot benchmark. In January 2024, the highest U.S. mannequin outperformed the perfect Chinese language mannequin by 9.26 %; by February 2025, this hole had narrowed to only 1.70 %. The report discovered comparable outcomes on different benchmarks regarding reasoning, math, and coding.
6. Humanity’s Final Examination

This yr’s report highlights the indisputable fact that lots of the benchmarks we use to gauge AI programs’ capabilities are “saturated” — the AI programs get such excessive scores on the benchmarks that they’re now not helpful. It has occurred in lots of domains: common information, reasoning about pictures, math, coding, and so forth. Gil says she has watched with shock as benchmark after benchmark has been rendered irrelevant. “I preserve considering [performance] goes to plateau, that it’s going to succeed in some extent the place we want new applied sciences or radically completely different architectures” to proceed making progress, she says. “However that has not been the case.”
In gentle of this example, decided researchers have been crafting new benchmarks that they hope will problem AI programs. A type of is Humanity’s Final Examination, which consists of extraordinarily difficult questions contributed by subject-matter consultants hailing from 500 establishments worldwide. Up to now, it’s nonetheless onerous for even the perfect AI programs: OpenAI’s reasoning mannequin, o1, has the highest rating thus far with 8.8 % right solutions. We’ll see how lengthy that lasts.
7. A Menace to the Information Commons

In the present day’s generative AI programs get their smarts by coaching on huge quantities of information scraped from the Web, resulting in the oft-stated concept that “information is the brand new oil” of the AI financial system. As AI firms preserve pushing the bounds of how a lot information they will feed into their fashions, folks have began worrying about “peak information,” and once we’ll run out of the stuff. One subject is that web sites are more and more limiting bots from crawling their websites and scraping their information (maybe as a result of issues that AI firms are taking advantage of the web sites’ information whereas concurrently killing their enterprise fashions). Web sites state these restrictions in machine readable robots.txt information.
This chart exhibits that 48 % of information from prime internet domains is now absolutely restricted. However Gil says it’s potential that new approaches inside AI could finish the dependence on big information units. “I might anticipate that sooner or later the quantity of information just isn’t going to be as important,” she says.
8. Right here Comes the Company Cash

The company world has turned on the spigot for AI funding over the previous 5 years. And whereas general international funding in 2024 didn’t match the giddy heights of 2021, it’s notable that personal funding has by no means been greater. Of the $150 billion in non-public funding in 2024, one other chart within the index (not proven right here) signifies that about $33 billion went to investments in generative AI.
9. Ready for That Massive ROI

Presumably, firms are investing in AI as a result of they anticipate an enormous return on funding. That is the half the place folks discuss in breathless tones in regards to the transformative nature of AI and about unprecedented good points in productiveness. However it’s honest to say that firms haven’t but seen a metamorphosis that leads to important financial savings or substantial new earnings. This chart, with information drawn from a McKinsey survey, exhibits that of these firms that reported value reductions, most had financial savings of lower than 10 %. Of firms that had a income improve as a result of AI, most reported good points of lower than 5 %. That large payoff should be coming, and the funding figures counsel that a variety of firms are betting on it. It’s simply not right here but.
10. Dr. AI Will See You Quickly, Perhaps

AI for science and medication is a mini-boom throughout the AI growth. The report lists a wide range of new basis fashions which were launched to assist researchers in fields comparable to supplies science, climate forecasting, and quantum computing. Many firms are attempting to show AI’s predictive and generative powers into worthwhile drug discovery. And OpenAI’s o1 reasoning mannequin not too long ago scored 96 % on a benchmark referred to as MedQA, which has questions from medical board exams.
However general, this looks as if one other space of huge potential that hasn’t but translated into important real-world influence—partially, maybe, as a result of people nonetheless haven’t found out fairly the best way to use the expertise. This chart exhibits the outcomes of a 2024 examine that examined whether or not docs would make extra correct diagnoses in the event that they used GPT-4 along with their typical sources. They didn’t, and it additionally didn’t make them sooner. In the meantime, GPT-4 by itself outperformed each the human-AI groups and the people alone.
11. U.S. Coverage Motion Shifts to the States

In america, this chart exhibits that there was loads of discuss AI within the halls of Congress, and little or no motion. The report notes that motion in america has shifted to the state stage, the place 131 payments have been handed into regulation in 2024. Of these state payments, 56 associated to deepfakes, prohibiting both their use in elections or for spreading nonconsensual intimate imagery.
Past america, Europe did go its AI Act, which locations new obligations on firms making AI programs which are deemed excessive threat. However the large international development has been international locations coming collectively to make sweeping and non-binding pronouncements in regards to the position that AI ought to play on the earth. So there’s loads of discuss throughout.
12. People Are Optimists

Whether or not you’re a inventory photographer, a advertising and marketing supervisor, or a truck driver, there’s been loads of public discourse about whether or not or when AI will come in your job. However in a current international survey on attitudes about AI, nearly all of folks didn’t really feel threatened by AI. Whereas 60 % of respondents from 32 international locations imagine that AI will change how they do their jobs, solely 36 % anticipated to get replaced. “I used to be actually shocked” by these survey outcomes, says Gil. “It’s very empowering to suppose, ‘AI goes to vary my job, however I’ll nonetheless carry worth.’” Keep tuned to seek out out if all of us carry worth by managing keen groups of AI staff.
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