Business News – Jan 17, 2025

Four bold AI predictions for 2025

This article is part of VentureBeat’s special issue, “AI at Scale: From Vision to Viability.” Read more from this special issue here.

This article is part of VentureBeat’s special issue, “AI at Scale: From Vision to Viability.” Read more from the issue here.

As we wrap up 2024, we can look back and acknowledge that artificial intelligence has made impressive and groundbreaking advances. At the current pace, predicting what kind of surprises 2025 has in store for AI is virtually impossible. But several trends paint a compelling picture of what enterprises can expect in the coming year and how they can prepare themselves to take full advantage.

1 - The plummeting costs of inference

In the past year, the costs of frontier models have steadily decreased. The price per million tokens of OpenAI’s top-performing large language model has dropped by more than 200 times in the past two years. In the context of machine learning, inference refers to the process of applying a trained model to new, unseen data to make predictions or decisions. This is the stage where the model uses the patterns and relationships it learned during training to analyze fresh inputs and produce outputs, such as classifying an image, predicting a numerical value, or generating text.

One key factor driving down the price of inference is growing competition. For many enterprise applications, most frontier models will be suitable, which makes it easy to switch from one to another, shifting the competition to pricing. Improvements in accelerator chips and specialized inference hardware are also making it possible for AI labs to provide their models at lower costs.

To take advantage of this trend, enterprises should start experimenting with the most advanced LLMs and build application prototypes around them even if the costs are currently high. The continued reduction in model prices means that many of these applications will soon be scalable. At the same time, the models’ capabilities continue to improve, which means you can do a lot more with the same budget than you could in the past year.

2 - The rise of large reasoning models

In the context of artificial intelligence (AI), reasoning models are advanced AI systems designed to simulate human-like thinking processes. Unlike earlier models that primarily relied on pattern recognition to generate responses, reasoning models engage in deeper analysis, allowing them to tackle complex tasks such as solving intricate math problems, writing computer code, and conducting scientific research. For example, OpenAI's o1 model represents a significant advancement in AI capabilities, demonstrating improved performance in reasoning-intensive tasks. This evolution signifies a shift from AI systems that simply predict text based on learned patterns to those that can "think" through problems, providing more accurate and contextually appropriate responses. However, it's important to note that while these models have made significant progress, they still face challenges, such as occasionally producing incorrect or nonsensical answers, indicating that achieving true human-like reasoning in AI remains an ongoing endeavor

The release of OpenAI o1 has triggered a new wave of innovation in the LLM space. The trend of letting models “think” for longer and review their answers is making it possible for them to solve reasoning problems that were impossible with single-inference calls. Even though OpenAI has not released o1’s details, its impressive capabilities have triggered a new race in the AI space. There are now many open-source models that replicate o1’s reasoning abilities and are extending the paradigm to new fields, such as answering open-ended questions.

Advances in o1-like models, which are sometimes referred to as large reasoning models (LRMs), can have two important implications for the future. First, given the immense number of tokens that LRMs must generate for

Episode 3844 - Jan 18 - Tiếng Anh - Tin Kinh doanh – Ngày 17 tháng 1, 2025 - Vina Technology at AI time

Vina Technology at AI time - Công nghệ Việt Nam thời AI

Episode 3844 - Jan 18 - Tiếng Anh - Tin Kinh doanh – Ngày 17 tháng 1, 2025 - Vina Technology at AI time