The rapid advancements in artificial intelligence (AI) are raising significant concerns about the future of work. Over the next decade, many job functions are predicted to be replaced by AI. While some remain optimistic, believing humans will adapt by creating new roles as they have in the past, the immediate impact of job displacement cannot be ignored. Leading figures in AI development acknowledge the likelihood of job losses and suggest potential solutions like universal basic income (UBI) to mitigate the economic consequences. Simultaneously, there’s a prevailing belief that AI’s influence will be deflationary and contribute to GDP growth, fueled by substantial investments in AI infrastructure. The transition, however, is expected to be challenging, and the implementation of UBI programs, like Sam Altman’s Tools for Humanity initiative, may become a necessity as artificial general intelligence (AGI) becomes more prevalent. While the arrival of AGI is anticipated, its initial impact may be subtle and go largely unnoticed.
The evolution of AI models and their reasoning capabilities is another area of interest. While some users have reported noticeable improvements in newer models, the significant costs associated with running these advanced reasoning models currently limit widespread access. This is expected to change in the near future, with wider availability predicted in 2025. A key challenge remains in effectively prompting these models, highlighting the need for improved user interfaces in AI applications to guide users and demonstrate the practical value of reasoning models. Ideally, future developments should focus on user needs and the tasks these tools can accomplish rather than technical jargon.
Snap faces ongoing challenges in 2025, primarily its slow revenue growth. Despite a growing user base, its financial performance lags behind competitors like Meta, making it less attractive to investors. Efforts to monetize the platform through ads in Chat and a redesigned Spotlight feature have yet to demonstrate significant impact. This slower growth also impacts Snap’s ability to attract and retain talent, exacerbating its underdog position. A potential ban or restructuring of TikTok in the US could, however, present a significant opportunity for Snap. Meanwhile, skepticism remains regarding CEO Evan Spiegel’s commitment to hardware, particularly the Spectacles AR glasses. While his vision is commendable, Snap faces increasing competition in the hardware space and appears to be at a disadvantage.
Meta’s hardware endeavors, particularly its foray into smart glasses, are anticipated to gain momentum in 2025. The company is expected to release “Hypernova,” a pair of smart glasses with a heads-up display for interacting with AI assistants and notifications. A key component of this release is the neural wristband, designed to control the glasses, offering a potentially groundbreaking user experience. This neural interface technology is anticipated to be a surprising and innovative aspect of the product. Meta also plans a separate smartwatch with neural capabilities and health tracking features as an optional upgrade. These developments mark a significant year for Meta’s hardware ambitions.
The future of TikTok in the US remains uncertain. While divestment from ByteDance is a possibility, it’s unlikely that China would permit the sale of the core algorithm. However, the significant financial and political stakes involved make TikTok’s complete disappearance unlikely. A more probable scenario is a revised version of the “TikTok Global” joint venture proposed in 2020. Oracle’s continued involvement is possible, given Larry Ellison’s influence. ByteDance is likely to retain day-to-day operational control while divesting a portion of its ownership. Elon Musk’s interest in a similar platform adds another layer of complexity to the situation, potentially influencing TikTok’s trajectory.
Google’s outlook appears positive, fueled by its vast resources, technical expertise, and extensive reach. While achieving CEO Sundar Pichai’s goal of making Gemini a consumer-level competitor to ChatGPT by 2025 presents a challenge, Google possesses the necessary tools to succeed. The company’s primary hurdle is its inherent corporate culture, which tends towards risk aversion and protecting existing assets. Pichai’s awareness of this challenge and the competitive landscape is a positive sign. Even if Google is forced to end its search default payments to Apple due to antitrust lawsuits, the impact is likely to be greater on Apple than Google. Furthermore, Waymo, Google’s self-driving car venture, holds the potential to offset any losses from other bets and contribute significantly to the company’s future success.
