Time for some big ideas.
The 2025 AI Index showcases a maturing field with improvements in model efficiency and a notable increase in AI incidents. The report highlights that the smallest AI model achieving over sixty percent on a benchmark has shrunk from five hundred forty billion parameters in 2022 to just three point eight billion in 2024, marking a remarkable reduction. The cost of querying high-performing models has dramatically decreased, falling from twenty dollars per million tokens to only seven cents in just under two years. While the United States continues to dominate in AI model production, China is quickly closing the performance gap, with notable AI models produced by U.S. institutions at forty, compared to China’s fifteen. The report also indicates a troubling rise in AI-related incidents, with two hundred thirty-three recorded in 2024, a fifty-six percent increase from the previous year. Investment in AI remains robust, with private funding in the U.S. reaching one hundred nine billion dollars, nearly twelve times higher than China’s nine point three billion. Furthermore, the use of AI in businesses has surged, with seventy-eight percent of surveyed organizations reporting AI integration, up from fifty-five percent in 2023. As states take the lead in AI regulation, legislation has increased from one law in 2016 to one hundred thirty-one by 2024. The report underscores a global divide in AI optimism, with eighty-three percent of respondents in China viewing AI advancements positively, compared to only thirty-nine percent in the United States.
And I wanted a good one – this about the benefits of long lasting standards. From The Verge, Wi-Fi has established itself as a remarkable example of backward compatibility, seamlessly connecting over sixty devices across five generations since its introduction in 1999. This interoperability allows everything from the latest iPhone to older gaming consoles like the Nintendo Wii to access the internet with minimal issues. The Wi-Fi Alliance, comprising over nine hundred member companies, certifies products to guarantee their compatibility, ensuring that devices bearing the Wi-Fi Certified logo will work together. However, maintaining this compatibility can be challenging, especially as newer standards emerge. Despite this, backward compatibility remains integral to Wi-Fi’s design, with manufacturers conducting rigorous testing to ensure devices can connect reliably. As the industry evolves, the future of backward compatibility may hinge on the continued support of the older 2.4 GHz band, which many legacy devices depend on. With ongoing advancements, users can expect their new devices to remain compatible with older technology for years to come.
Why do we care?
These two stories seem unrelated—AI acceleration and Wi-Fi’s longevity—but they reflect two essential strategic truthsfor modern IT services:
- Innovation needs guardrails. AI’s cost drop is a game changer—but managing risk is the unlock to long-term value.
- Stability is a differentiator. In a volatile market, the ability to deliver innovation without disruption becomes a competitive edge.
Smart MSPs won’t choose between these forces. They’ll learn to do both—fast when it helps, slow when it matters.
How can you implement those guard rails for customers and leverage stability as the differentiator?
