The Stanford Institute for Human-Centered Artificial Intelligence (HAI) has released its 2025 AI Index, revealing unprecedented growth across nearly every aspect of artificial intelligence development worldwide. The eighth edition of this annual report offers a comprehensive look at how AI is reshaping technology, business, governance, and society at large.
In 2024, AI achieved notable advances in model performance, with benchmark scores rising dramatically and some systems even surpassing human capabilities. Real-world adoption also surged, especially in healthcare and transportation. As of August 2024, the FDA had approved 950 AI-powered medical devices, while autonomous ride-hailing services like Waymo provided over 150,000 weekly rides.
The U.S. continues to lead in developing advanced AI models, contributing 40 in 2024, but China is quickly closing the performance gap. Though China produced fewer models, its benchmark scores nearly matched U.S. standards. Meanwhile, global AI investment hit new highs, with U.S. private sector funding reaching $109.1 billion — 12 times China’s investment and 24 times the U.K.’s. Generative AI alone attracted $33.9 billion in global funding.
AI is also becoming more affordable and accessible. The cost of running models like GPT-3.5 dropped 280-fold in just two years, thanks to improvements in hardware and the emergence of smaller, efficient models. Additionally, more open-weight models are nearing the performance of proprietary ones, closing the quality gap.
On the governance front, regulatory activity surged. The U.S. introduced 59 AI-related regulations in 2024, while global policy efforts expanded through institutions like the UN and OECD. Governments worldwide are also increasing investment, with Canada, France, China, India, and Saudi Arabia pledging billions to AI infrastructure.
Despite this rapid progress, challenges remain in reasoning, safety, and equitable access. Public sentiment around AI is optimistic in parts of Asia but remains cautious in Western nations. Still, optimism is trending upward globally.
The AI Index is a widely used, data-driven tool relied upon by leaders in policy, academia, and industry to understand the pace, risks, and potential of AI. It offers a crucial lens into where artificial intelligence is heading—and how it’s reshaping our world.
