“In the middle of difficulty lies opportunity.” – Albert Einstein

You’ve probably heard from some of your AI enthusiast friends that AI development has slowed over the second half of 2024.

Now, while it’s true that we have hit some form of scaling “wall”, where despite feeding AI more data to be trained on, it doesn’t produce significant improvement.

By the way, if this is all new to you, you can read my deeper dive into the topic here.

But of course, as history has repeatedly taught us, humans always had a way to go around and overcome hurdles on their journey. This was how Generative AI models that are better at “reasoning” were introduced (we covered that in last quarter’s edition).

Yet, despite this “slow down”, the growth over the last 3 months wasn’t slow at all. In fact, most AI leaders closed 2024 with a bang and with enough firepower to jumpstart 2025.

And in this issue of Important AI Trends of the Last 90 Days, we will look at some of the key “happenings” of the AI world from October to December 2024. In my usual format, I will break it down into actionable insights, i.e. what it all means to you, and what can you do (immediately) about it.

There are some smaller trends that I had to omit to keep the article concise, so drop me a comment below if you want to know what they were. It just shows how much did and can happen in 90 days in the AI world 😅

And to think OpenAI is not the only company that has raised massive funds in the last 18 months…

AI Highlight #1. OpenAI’s Historic Funding Round

In October 2024, OpenAI secured a record-breaking $6.6 billion in funding, pushing its valuation to $157 billion. This infusion, led by Thrive Capital with participation from Microsoft and Nvidia, marks one of the most significant funding rounds in AI history.

A particularly noteworthy aspect of this funding round was OpenAI’s requirement that investors agree not to invest in five other competing companies. This restrictive clause, rarely seen in the venture capital world since Uber’s similar move years ago, underscores OpenAI’s dominance and strategic approach to maintaining its competitive edge in the AI race.

The resources from this funding round have already accelerated OpenAI’s advancements. During their 12 days of “Ship-mas,” OpenAI unveiled several new features, including o3 mini and o3 models. These reasoning models outperform their predecessors by over 300% and even achieved a significant milestone by solving one of the ARC puzzles—a feat no previous AI model had accomplished.

OpenAI also extended some previously premium features to free-tier users, boosting its weekly active users to over 300 million. While this number may not rival Facebook’s 2.11 billion daily active users or Roblox’s 300 million monthly active users, it’s important to recognise the distinction: ChatGPT falls within the “utility” category rather than entertainment. With one in ten global employees estimated to be engaging with ChatGPT, its reach in the professional landscape is undeniable.

💡 What does this mean for organizations and businesses?

• Enhanced Capabilities at Scale: OpenAI’s funding has paved the way for tools with advanced reasoning, personalization, and decision-making capabilities. Organizations can now leverage AI to transform not just how they work, but how they innovate from dynamic training modules to intelligent customer support solutions.

• Pressure to Innovate: As these tools become more accessible, businesses will face mounting pressure to integrate AI into their workflows. Companies that fail to adapt risk falling behind in an increasingly AI-driven world.

• Smarter Decision-Making: New reasoning models like o3 mini allow AI to handle complex decisions, making it possible for organizations to streamline operations, uncover inefficiencies, and act faster. For example, AI can analyze customer behavior trends or identify employee training gaps with unprecedented accuracy.

🚀 What can you do to capitalize on this trend?

• Experiment with OpenAI’s latest offerings: Try tools like ChatGPT for tailored learning or operational support. For example, consider using these tools to create interactive training modules or automate routine tasks like customer inquiries.

• Stay updated on OpenAI’s advancements: Subscribe to updates or follow AI-focused industry events to remain ahead of the curve and spot opportunities for adoption.

• Begin piloting AI initiatives: Start small with specific use cases—such as chat-based employee onboarding or customer support—to gather data, measure ROI, and refine implementation strategies.

The agents are coming! The agents are coming!

AI Highlight #2. Salesforce’s Launch of Agentforce 2.0

In December 2024, Salesforce unveiled Agentforce 2.0, an enhanced platform for AI-driven business automation. This new iteration expands the functionality of AI agents, enabling businesses to automate complex workflows and improve collaboration through seamless integration with tools like Slack.

One of the standout features of Agentforce 2.0 is its ability to learn from historical workflows, adapting its recommendations and actions based on organizational preferences. For example, an AI agent can analyze past onboarding processes to identify bottlenecks and propose optimizations, or it can manage customer service escalations autonomously, notifying the appropriate team only when necessary.

Additionally, Salesforce has incorporated enhanced natural language processing (NLP) capabilities, allowing these AI agents to better understand and respond to nuanced human communication. This means fewer errors in automation, more effective employee interaction, and greater trust in the system’s capabilities.

💡 What does this mean for organizations and businesses?

• Revolutionizing Task Automation: Agentforce 2.0 represents a significant leap in how organizations can use AI to handle repetitive tasks and streamline operations. By automating processes like onboarding, customer service, and internal communication, companies can redirect resources toward strategic initiatives.

• Adaptable AI Solutions: The platform’s ability to learn from historical workflows ensures that AI doesn’t just execute tasks but continuously improves efficiency over time, allowing organizations to refine operations and increase productivity.

• Accessible for All Business Sizes: For SMEs, Agentforce 2.0 offers a cost-effective way to enhance efficiency without expanding the workforce. For larger enterprises, it provides scalability and consistency across departments, making integration seamless and impactful.

Heads Up! In fact, if you’ve met me at any offline speaking events, I would have mentioned my prediction that 2025 will be the year of AI Agents. A huge leap from the era of AI Assistants we have been in over the last 2-3 years, AI Agents can autonomously execute tasks for you. This is indeed a big game changer to the workforce, which we will cover the next week’s article on the Future of Work for 2025. Stay tuned!

🚀 What can you do to capitalize on this trend?

• Identify Repetitive Tasks: Map out workflows that involve repetitive tasks and assess which could benefit most from automation. Areas like customer support ticket management, employee onboarding, or routine data entry are good starting points.

• Start Small with Pilots: Implement Agentforce 2.0 in a limited capacity, such as a single department or function, to test its effectiveness and gather feedback before scaling.

• Upskill Your Teams: Train employees to collaborate effectively with AI agents, ensuring that human-AI collaboration is intuitive and productive.

With great power….

AI Highlight #3. Appointment of the AI and Crypto ‘Czar’

In December 2024, President-elect Donald Trump appointed David Sacks as the White House’s first AI and Crypto ‘Czar.’ Known for his tenure as COO of PayPal and his leadership in building Yammer, Sacks brings a wealth of entrepreneurial experience and a reputation for navigating complex tech landscapes.

This new role signifies the government’s commitment to establishing a clear regulatory framework for artificial intelligence and cryptocurrency.

Sacks is expected to drive innovation while ensuring ethical and secure technology use. His appointment signals a pivotal moment in U.S. policy-making, where technology is increasingly recognized as a cornerstone of economic and geopolitical strategy.

This move not only reflects the growing influence of AI and crypto but also the urgency to position the U.S. as a global leader in these transformative fields.

On a side note, Elon Musk of X AI, Tesla and SpaceX have gotten close to President-elect Trump. One of the funnier incidents was when Google CEO Sundar Pichai called Trump to congratulate him on his victory, only having Elon join the call, too. This underscores Elon’s growing influence and closer ties with the Trump administration.

💡 What does this mean for organizations and businesses?

Regulatory Clarity: Businesses can expect greater confidence in adopting AI and cryptocurrency technologies, thanks to clearer policies and guidelines. This reduced uncertainty enables organizations to align their strategies with emerging regulatory frameworks.

Government Support: Increased focus on AI and crypto may lead to funding opportunities, such as grants for research, development, or technology adoption. These initiatives will likely benefit businesses of all sizes, leveling the playing field for innovation.

Global Implications: The U.S. taking a leadership role in AI and crypto regulation could set global standards, impacting how organizations operate across borders and compelling them to adopt best practices.

🚀 What can you do to capitalize on this trend?

• Monitor Regulatory Developments: Stay informed about policy updates related to AI and cryptocurrency. This proactive approach allows you to adapt your strategies in advance and seize early opportunities.

• Leverage Incentives: Explore government grants, tax breaks, or public-private partnerships that support AI or crypto adoption. These programs can offset costs and accelerate your innovation efforts.

• Align with Ethical Standards: Develop internal policies for ethical AI use, including transparency, data privacy, and security. This not only ensures compliance but also builds trust with customers, employees, and stakeholders.

In the AI talent war…the first big shot has been fired!

AI Highlight #4. Intensifying AI Talent Competition

The global race for AI talent has never been fiercer.

In Q4 2024, companies like Databricks, which raised billions in funding, announced aggressive strategies to attract and retain top-tier AI professionals. The competition is especially intense for specialized roles such as machine learning engineers, data scientists, and AI ethicists. Salaries for these positions have soared, with some companies offering benefits like equity stakes, advanced learning opportunities, and even remote work flexibility to stand out.

Smaller organizations, particularly SMEs, are feeling the pinch as they struggle to compete with the lucrative packages offered by tech giants. To address this gap, many are turning to creative solutions, such as partnering with universities to create talent pipelines, upskilling existing employees, or collaborating with AI vendors to meet immediate needs.

The stakes are high. As AI continues to integrate deeper into operations across industries, organizations lacking skilled professionals risk falling behind, unable to fully leverage the transformative potential of these technologies.

Point to ponder: One of the rising sub-trends among the younger workforce is to pick companies that allow and encourage the use of Gen AI tools in their daily work. Some would even prioritize it over remote work privileges!

💡 What does this mean for organizations and businesses?

• A Growing Divide: The disparity between companies with access to AI talent and those without is widening, potentially creating competitive disadvantages for smaller businesses.

• Upskilling as a Strategic Imperative: Investing in internal training programs will no longer be optional. Organizations must prioritize building AI literacy and expertise among their teams.

• A Shifting Talent Landscape: The competition is prompting businesses to reimagine their hiring strategies, focusing not just on attracting talent but also on fostering retention through innovative work cultures.

🚀 What can you do to capitalize on this trend?

• Invest in Workforce Development: Launch comprehensive AI training programs to upskill your team. Consider partnering with platforms like Coursera or Udemy to provide structured learning paths.

• Leverage External Expertise: Partner with AI vendors or freelancers to bridge immediate skill gaps while planning for long-term internal capacity building.

• Build a Competitive Culture: Highlight your company’s commitment to innovation by showcasing AI-driven projects, offering flexible work options, and creating pathways for career growth within AI-focused roles.

AI goes nuclear!

AI Highlight #5. Tech Giants’ Investment in Nuclear Energy for AI

As the energy demands of artificial intelligence grow exponentially, leading tech companies like Google, Amazon, Oracle, Microsoft and Meta are investing heavily in nuclear power to ensure a sustainable and scalable energy supply for their AI operations. Over the last few months, these companies announced ambitious partnerships and initiatives focused on small modular reactors (SMRs) and next-generation nuclear technologies.

Here’s an overview of their recent initiatives:

Google: Partnered with Oklo, a startup specializing in advanced nuclear reactors, to supply clean energy for its data centers.

Amazon: Committed $500 million to develop small modular reactors (SMRs) to support its expanding AI infrastructure and achieve net-zero carbon goals.

Microsoft: Collaborating with nuclear providers to explore reactor technologies tailored to AI’s intensive computational needs. Notably, Microsoft has entered into a 20-year agreement with Constellation Energy to reopen the Three Mile Island nuclear plant, securing a dedicated power supply for its AI data centers.

Meta: Seeking to add 1 to 4 gigawatts of new nuclear generation capacity in the U.S. by the early 2030s to power its data centers and AI workloads.

Oracle: Under Larry Ellison’s leadership, Oracle plans to build data centers powered by small modular nuclear reactors, anticipating a significant AI-driven infrastructure boom.

The shift toward nuclear energy reflects the tech industry’s recognition of two critical realities: AI scalability requires vast amounts of reliable power, and sustainability is no longer optional. This investment in nuclear power sets a precedent for industries relying on high-energy computational workloads, reinforcing the importance of long-term energy solutions.

💡 What does this mean for organizations and businesses?

• Energy Sustainability as a Strategic Imperative: Organizations adopting AI must consider energy consumption in their strategies, aligning operational growth with sustainable practices.

• Infrastructure Planning for AI Scalability: Access to reliable energy sources will become a critical factor for businesses scaling their AI capabilities, particularly those leveraging large language models or advanced analytics.

• Setting Industry Standards: Companies that incorporate sustainable practices into their AI operations will gain competitive advantages, influencing customer trust and regulatory policies.

🚀 What can you do to capitalize on this trend?

• Adopt Energy-Efficient AI Tools: Prioritize solutions designed to minimize energy consumption while maintaining performance. For example, explore AI providers that emphasize sustainability in their operations.

• Incorporate Sustainability into Your Goals: Align your AI strategies with Environmental, Social, and Governance (ESG) objectives to future-proof your organization and attract stakeholders prioritizing sustainability.

• Partner with Energy Innovators: Collaborate with providers of renewable or advanced energy technologies to secure reliable energy solutions tailored to your needs. This could include exploring partnerships with nuclear startups or integrating renewable energy sources.

If 2024 had been the year of exploration and experimentations, get ready for an extravagant 2025!

Closing Thoughts: Looking Ahead to 2025

The past 90 days have shown us that while AI’s pace of development may face challenges, innovation remains relentless. From transformative funding rounds to groundbreaking advancements in AI tools and energy sustainability, 2024 ended on a high note for the AI industry.

These shifts aren’t just reshaping technology—they’re redefining how businesses, organizations, and even governments approach growth, efficiency, and resilience.

As we move into 2025, one thing is clear: AI is no longer a luxury but a necessity.

The question for leaders in L&D, HR, and even my fellow SME business owners, isn’t whether to integrate AI but how to do so effectively. Will you focus on leveraging smarter tools for decision-making, embracing automation to scale your operations, or aligning your strategies with sustainability goals?

The choice is yours, but one thing is certain—staying informed and adaptable will be key to thriving in this AI-driven era.

So, which of these trends will you act on first? Let’s make 2025 the year where possibilities become realities.

p.s. There were easily a couple of AI trends that did not make the top 5 list. Drop me at email at mav@radiant.institute if you’re keen, and I might do follow-up bite-size pieces instead.