The State of AI Development in 2025…

Via https://www.theneurondaily.com/p/state-of-ai-in-2025-exposed

“Late last year, we helped Vellum survey over 1,250 AI builders to understand where AI development is really heading. Spoiler alert: It’s not quite the AI takeover you might expect.

Here’s the surprising truth about AI development in 2025: most companies are still figuring it out.

Only 25.1% of businesses have actually deployed AI in production. Everyone else is split between building proofs of concept (21%), beta testing (14.1%), or still working on their strategy (25%). The rest are somewhere between talking to users and evaluating their initial attempts.

As for what companies are building: document parsing leads the pack at 59.7%, followed by customer service chatbots at 51.4%. Interestingly, research automation (23.7%) and compliance automation (15%) aren’t getting as much love.

The model landscape looks familiar, but is shifting. Smaller companies prefer direct API access via OpenAI, while enterprises (5000+ employees) love Azure.

OpenAI and Azure continue to dominate, but interesting players like Groq (10.7%) and Together AI are gaining ground.

In fact, The Information just reported that TogetherAI recently hit $100M in annualized revenue, about 3x what it was a year ago, and just raised another $200M in VC funding.

What about “challenges?”?

• 57.4% are wrestling with “hallucinations.”
• 42.5% struggle to prioritize impactful use cases.
• Only 38% are using automated evaluation tools.

The intelligence is certainly there… the hard part now is making that IQ actually useful.

Looking ahead to 2025, companies are dreaming big:

A quarter of companies report “no measurable impact yet” from their AI initiatives—maybe this is why 41.9% plan to upskill their teams in 2025.

If 2024 was the year everyone jumped on the AI bandwagon, then 2025 looks like it’ll be the year we figure out how to actually drive it…or run it off the road.”