AI sector faces transformation with new efficiency breakthroughs and stricter regulations

forbes.com February 3, 2025, 10:00 PM UTC

The AI sector is experiencing significant changes due to new efficiency breakthroughs, stricter regulations, and shifting corporate strategies. Chinese startup DeepSeek has introduced an open-source AI model that performs comparably to leading models but at a much lower cost, challenging the need for high computing power. On February 2, the EU's AI Act took effect, banning high-risk AI systems. This has increased pressure on U.S. regulators to address AI's environmental and ethical concerns. The focus is shifting towards smaller, more efficient AI models that could lessen climate impacts. Major tech companies are adjusting their AI strategies. Apple is prioritizing on-device processing and developing custom AI chips, moving away from reliance on third-party providers. As the market evolves, businesses must decide whether to adapt existing technologies or create their own, shaping the future of AI innovation.


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