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Artificial intelligence emerged as one of the defining forces of 2025, reshaping the global economy while at the same time intensifying debates over employment, environmental sustainability and regulation, as governments, companies and societies struggled to keep up with its rapid spread.
From manufacturing floors to financial services, AI-powered systems were increasingly rolled out to cut costs, speed up processes and support decision-making. This broad adoption helped companies unlock new sources of value and laid the groundwork for a fast-growing global market built around AI-based software, products and consulting services. Yet the same transformation also deepened concerns over disappearing jobs, rising energy demand and the social risks tied to unregulated use.
Throughout 2025, corporations across sectors such as logistics, healthcare, finance and services leaned more heavily on AI to streamline operations. Automated systems took over routine tasks, while data-driven tools helped firms plan production, manage supply chains and assess financial risks more efficiently. These changes reportedly saved billions of dollars worldwide and pushed firms to reinvent their business models.
According to a report published by PwC in April, the global adoption of AI could expand the world economy by up to 15% by 2035, adding roughly one percentage point to annual global growth on average. PwC described this impact as comparable in scale to 19th-century industrialization, noting that pressure on companies to transform had reached its highest level in a quarter century, affecting most major global sectors.
The report also pointed out that AI is expected to blur traditional sector boundaries over the next decade. New clusters, such as mobility, which brings together electric vehicles, batteries and software, are likely to play a key role in redistributing economic value across industries.
While AI-driven growth gathered pace, climate-related risks continued to weigh on economic projections. PwC warned that physical risks linked to climate change could leave the global economy about 7% below its potential by 2035. At the same time, AI itself added to environmental pressure through its heavy reliance on data centers.
As investment in AI infrastructure scaled up, the number of data centers worldwide increased, fueling activity in construction, energy and technology. These facilities, which run cloud services and AI applications, consume vast amounts of electricity and water. In the United States alone, where more than 4,000 data centers operate, their electricity use already accounts for over 4% of total national consumption, with demand expected to rise sharply in the coming years.
A single large, AI-focused data center can use as much electricity as a small city of around 100,000 households. Water use is similarly high, as cooling systems rely on large volumes to prevent overheating. Google reported that its data centers consumed 22.7 billion liters of water in 2024, a figure expected to grow alongside its expanding AI projects.
The spread of AI brought a mixed picture for employment. On one hand, demand rose for specialists in areas such as AI engineering, data science, cybersecurity and algorithm auditing. On the other, many traditional roles faced growing pressure from automation.
The World Economic Forum, in its Future of Jobs 2025 report, estimated that around 92 million jobs worldwide could disappear by 2030 due to AI-powered automation and related technologies. Roles involving routine and repetitive tasks were identified as most vulnerable, including administrative support, customer service and some accounting and office functions.
The International Labor Organization echoed these concerns, warning that occupations in secretarial and administrative assistance face a particularly high risk of job loss. The ILO emphasized that reskilling, occupational transition and education policies would be essential to soften the impact, while cautioning that efficiency gains from AI could widen existing labor market inequalities if left unaddressed.
As AI tools spread into daily life, governments moved to put safeguards in place. In the European Union, the Artificial Intelligence Act, which entered into force in 2024, saw key prohibitions take effect in February 2025. These included bans on the use of facial and emotion recognition systems in workplaces and educational institutions without consent.
In the United States, the TAKE IT DOWN Act was signed into law in May to tackle non-consensual deepfake images and videos, particularly those involving intimate content. These measures reflected growing concern over the misuse of AI and its impact on privacy and trust.
Public confidence was further shaken by high-profile incidents, including bans on certain foreign-developed chatbots over data collection concerns and reports that private chatbot conversations had appeared in search engine results.
Beyond jobs and growth, AI’s footprint increasingly touched everyday life. Communities living near data centers, especially in parts of the United States such as Texas, Virginia and Minnesota, reported strains on local infrastructure. Residents faced higher electricity and water bills, noise pollution and concerns over water quality.
At the same time, the growing reliance on AI-powered chatbots raised questions about mental health. Research from Stanford University’s Institute for Human-Centered AI suggested that such tools can be biased when dealing with certain mental disorders and may sometimes guide users toward harmful behavior if used as substitutes for professional support or human relationships.
Taken together, the developments of 2025 showed AI as a force that is driving growth and innovation while also bringing complex social, environmental and regulatory challenges to the forefront, forcing governments and societies to balance opportunity with risk.
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