AI innovations have taken the world by storm since ChatGPT’s debut in November 2022. We’ve seen more organisations integrate AI into their workflows: a recent survey by McKinsey revealed that 78% of the respondents work in organisations that use AI in at least one business function.
What’s more intriguing is the bounce back of Nvidia, now the world’s leading chipmaker. Its stock price has surged by 1635% in the past five years, placing it third in terms of value in market capitalisation, slightly behind Apple and Microsoft.
But with AI running hot over the past two years, most investors are questioning how far the AI narrative can extend. Are we close to an extended pullback or are there some fundamentals to keep the AI narrative alive?
While we may witness a period of slowed growth in the medium term, there are several reasons why the AI trend will likely continue much longer. The next section of this article will highlight four key signals that point to this likelihood:
High adoption rate of new AI tech
ChatGPT set the record for the fastest growing user base in the tech sector, eclipsing the 100 million user mark two months after its launch data. Today, there are over 400 million ChatGPT users weekly.
ChatGPT’s latest image generation feature has witnessed massive demand, with users coming to the platform to create Ghibli-style AI: “It’s super fun seeing people love images in ChatGPT, but our GPUs are melting,” said Altman in an X post.
While there have been criticisms about copyright issues, what’s worth noting is the rate at which the world is experimenting with AI innovations. Gone are the days when AI was a niche carved out for tech bros; AI is mainstream.
Advances in digital human innovations
Imagine a digital doppelgänger that can interact with other internet users on your behalf at the same level of personalisation you would. This has long been a dream for many AI enthusiasts and it may finally be becoming a reality.
It is possible to create a hyper-realistic and intelligent digital twin through an AI-powered SaaS platform like Antix. Unlike conventional avatars which lack human qualities, Antix’s digital humans offer a new level of digital interaction. They are designed to deliver realistic interactions, letting users engage in more meaningful and profound ways.
This advance in digital human innovation may transform today’s digital landscape. For the first time, it will be possible for internet users anywhere to create or acquire a digital twin that can evolve or hold conversations according to a user’s preferences and personality. For example, Antix’s digital humans give the flexibility to customise key human attributes, including style, appearance, emotions and voice.
Increased funding in the AI space
According to Statista, global funding in AI startups hit a new high of $100 billion in 2024. The trend will likely continue in 2025 as more countries allocate funding to AI innovations. Here are two key developments this year:
President Trump recently announced a $500 billion private sector investment in funding AI infrastructure. The goal is to make the US a leading contender in the AI race.
China has allocated $8.2 billion into a new AI fund following a move by the US to go ahead with additional chip export restrictions, targeting Chinese firms.
Accelerated global AI race
A global AI race has been brewing between the US and China. While it may seem like negative engagement, a competitive ecosystem is exactly what the AI space needs for growth.
For example, China’s DeepSeek R1 model was developed at only $6 million, a fraction of the cost to train models like Google’s Gemini and ChatGPT. While some critics have argued it couldn’t have cost that little, the Chinese model has challenged its Western counterparts to be leaner in their AI development processes.
We’re also seeing the likes of Open AI stepping up to roll out more advanced features such as the image generator currently making waves.
Conclusion
AI is one of the four industrial technologies that have gained traction recently. While there are a number of issues yet to be ironed out, including ethical concerns, it is evident that the AI narrative will be a while in fading away. The four factors above are a glimpse of what might sustain this narrative. As of writing, there are more AI innovations than most of us or regulators can keep up with. That alone should be a signal that the nascent industry is just getting started.
