The year 2025 was marked by rapid developments in artificial intelligence, yet it also brought a fair share of uncertainty about where the technology is truly headed. AI claims ranged from replacing human labor in workplaces to powering next‑generation devices, but many of these assertions fell short or remained aspirational. As the pace of innovation accelerated, observers began questioning some lofty expectations around return on investment and practical outcomes.
Beyond AI hype, India’s broader tech landscape also saw notable progress. Digital transactions soared to record levels, with platforms like PhonePe and Google Pay leading the way in user activity and new features. Meanwhile, advances in consumer and automotive tech—such as ultra‑slim smartphones, enhanced in‑car touch interfaces, and emerging smart glasses—show that innovation in hardware and user experience is keeping pace with software developments.
A striking theme of the year was the circular nature of AI investment, where large sums of money circulated among a small group of players. Deals involving major firms and chip manufacturers highlighted how billions are being committed to infrastructure, sometimes raising questions about whether spending patterns reflect strategic growth or a kind of economic loop with unclear returns. Financial analysts noted that while fundamentals differ from past tech bubbles, cautious evaluation remains warranted.
Finally, the energy demands of AI infrastructure came into sharp focus. Data centres supporting advanced AI consume vast amounts of electricity, contributing to strained grids and increased emissions—a trend projected to grow significantly by 2030. This reality underscored broader concerns about the sustainability of current AI growth trajectories and the need for thoughtful planning as the technology becomes ever more central to business and society.
