Development

The AI terms that shaped debate and disruption in 2025

AI continued to dominate public debate in 2025, not only through new products and investment rounds, but also through a rapidly evolving vocabulary that captured both promise and unease.

From ambitious visions of superintelligence to cultural shorthand like ‘slop’, language became a lens through which society processed another turbulent year for AI.

Several terms reflected the industry’s technical ambitions. Concepts such as superintelligence, reasoning models, world models and physical intelligence pointed to efforts to push AI beyond text generation towards deeper problem-solving and real-world interaction.

Developments by companies including Meta, OpenAI, DeepSeek and Google DeepMind reinforced the sense that scale, efficiency and new training approaches are now competing pathways to progress, rather than sheer computing power alone.

Other expressions highlighted growing social and economic tensions. Words like hyperscalers, bubble and distillation entered mainstream debate as data centres expanded, valuations rose, and cheaper model-building methods disrupted established players.

At the same time, legal and ethical debates intensified around fair use, chatbot behaviour and the psychological impact of prolonged AI interaction, underscoring the gap between innovation speed and regulatory clarity.

Cultural reactions also influenced the development of the AI lexicon. Terms such as vibe coding, agentic and sycophancy revealed how generative systems are reshaping work, creativity and user trust, while ‘slop’ emerged as a blunt critique of low-quality, AI-generated content flooding online spaces.

Together, these phrases chart a year in which AI moved further into everyday life, leaving society to wrestle with what should be encouraged, controlled or questioned.

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Quantum computing milestone achieved by Chinese researchers

Chinese researchers have reported a significant advance in quantum computing using a superconducting system. The Zuchongzhi 3.2 computer reached the fault-tolerant threshold, at which point error correction improves stability.

Pan Jianwei led the research and marks only the second time globally that this threshold has been achieved, following earlier work by Google. The result positions China as the first country outside the United States to demonstrate fault tolerance in a superconducting quantum system.

Unlike Google’s approach, which relies on extensive hardware redundancy, the Chinese team used microwave-based control to suppress errors. Researchers say this method may offer a more efficient path towards scalable quantum computing by reducing system complexity.

The breakthrough addresses a central challenge in quantum computing: qubit instability and the accumulation of undetected errors. Effective error management is crucial for developing larger systems that can maintain reliable quantum states over time.

While practical applications remain distant, researchers describe the experiment as a significant step in solving a foundational problem in quantum system design. The results highlight the growing international competition in the quest for scalable, fault-tolerant quantum computers.

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Tsinghua University is emerging as a cornerstone of China’s AI strategy

China’s Tsinghua University has emerged as a central hub in the country’s push to become a global leader in AI. The campus hosts a high level of research activity, with students and faculty working across disciplines related to AI development.

Momentum has been boosted by the success of DeepSeek, an AI startup founded by alums of Tsinghua University. The company reinforced confidence that Chinese teams can compete with leading international laboratories.

The university’s rise is closely aligned with Beijing’s national technology strategy. Government backing has included subsidies, tax incentives, and policy support, as well as public endorsements of AI entrepreneurs affiliated with Tsinghua.

Patent and publication data highlight the scale of output. Tsinghua has filed thousands of AI-related patents and ranks among the world’s most cited institutions in AI research, reflecting China’s rapidly expanding share of global AI innovation.

Despite this growth, the United States continues to lead in influential patents and top-performing models. Analysts note, however, that a narrowing gap is expected, as China produces a growing share of elite AI researchers and expands AI education from schools to advanced research.

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New AI directorates signal Türkiye’s push for AI

Türkiye has announced new measures to expand its AI ecosystem and strengthen public-sector adoption of the technology. The changes were published in the Official Gazette, according to Industry and Technology Minister Mehmet Fatih Kacir.

The Ministry’s Directorate General of National Technology has been renamed the Directorate General of National Technology and AI. The unit will oversee policies on data centres, cloud infrastructure, certification standards, and regulatory processes.

The directorate will also coordinate national AI governance, support startups and research, and promote the ethical and reliable use of AI. Its remit includes expanding data capacity, infrastructure, workforce development, and international cooperation.

Separately, a Public AI Directorate General has been established under the Presidency’s Cybersecurity Directorate. The new body will guide the use of AI across government institutions and lead regulatory work on public-sector AI applications.

Officials say the unit will align national legislation with international frameworks and set standards for data governance and shared data infrastructure. The government aims to position Türkiye as a leading country in the development of AI.

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Phishing scam targets India’s drivers in large-scale e-Challan cyberattack

Cybercriminals are exploiting trust in India’s traffic enforcement systems by using fake e-Challan portals to steal financial data from vehicle owners. The campaign relies on phishing websites that closely mimic official government platforms.

Researchers at Cyble Research and Intelligence Labs say the operation marks a shift away from malware towards phishing-based deception delivered through web browsers. More than 36 fraudulent websites have been linked to the campaign, which targets users across India through SMS messages.

Victims receive alerts claiming unpaid traffic fines, often accompanied by warnings of licence suspension or legal action. The messages include links directing users to fake portals displaying fabricated violations and small penalty amounts, with no connection to government databases.

The sites restrict payments to credit and debit cards, prompting users to enter full card details. Investigators found that repeated payment attempts allow attackers to collect multiple sets of sensitive information from a single victim.

Researchers say the infrastructure is shared with broader phishing schemes that impersonate courier services, banks, and transportation platforms. Security experts advise users to verify fines only through official websites and to avoid clicking on links in unsolicited messages.

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EU targets addictive gaming features

Video gaming has become one of Europe’s most prominent entertainment industries, surpassing a niche hobby, with over half the population regularly engaging in it.

As the sector grows, the EU lawmakers are increasingly worried about addictive game design and manipulative features that push players to spend more time and money online.

Much of the concern focuses on loot boxes, where players pay for random digital rewards that resemble gambling mechanics. Studies and parliamentary reports warn that children may be particularly vulnerable, with some lawmakers calling for outright bans on paid loot boxes and premium in-game currencies.

The European Commission is examining how far design choices contribute to digital addiction and whether games are exploiting behavioural weaknesses rather than offering fair entertainment.

Officials say the risk is higher for minors, who may not fully understand how engagement-driven systems are engineered.

The upcoming Digital Fairness Act aims to strengthen consumer protection across online services, rather than leaving families to navigate the risks alone. However, as negotiations continue, the debate over how tightly gaming should be regulated is only just beginning.

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Kazakhstan climbs global AI readiness ranking

Kazakhstan has risen to 60th place out of 195 countries in the 2025 Government AI Readiness Index, marking a 16-place improvement and highlighting a year of accelerated institutional and policy development.

The ranking, compiled by Oxford Insights, measures governments’ ability to adopt and manage AI across public administration, the economy, and social systems.

At a regional level, Kazakhstan now leads Central Asia in AI readiness. A strong performance in the Public Sector Adoption pillar, with a score of 73.59, reflects the widespread use of digital services, e-government platforms, and a shift toward data-led public service delivery.

The country’s advanced digital infrastructure, high internet penetration, and mature electronic government ecosystem provide a solid foundation for scaling AI nationwide.

Political and governance initiatives have further strengthened Kazakhstan’s position. In 2025, the government enacted its first comprehensive AI law, which covers ethics, safety, and digital innovation.

At the same time, the Ministry of Digital Development, Innovation and Aerospace Industry was restructured into a dedicated Ministry of Artificial Intelligence and Digital Development, signalling the government’s commitment to making AI a central policy priority.

Kazakhstan’s progress demonstrates how a focused policy, infrastructure, and institutional approach can enhance AI readiness, enabling the responsible and effective integration of AI across public and economic sectors.

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Japan to boost spending on semiconductors and AI

Japan’s Ministry of Economy, Trade and Industry is set to significantly increase funding for advanced semiconductors and AI in the coming fiscal year.

Spending on chips and AI is expected to nearly quadruple to ¥1.23 trillion ($7.9 billion), accounting for the majority of the ministry’s ¥3.07 trillion budget, a 50% increase from last year. The budget, approved by Prime Minister Sanae Takaichi’s Cabinet, will be debated in parliament early next year.

The funding boost reflects Japan’s push to strengthen its position in frontier technologies amid global competition with the US and China. The government will fund most of the additional support through regular budgets, ensuring more stable backing for semiconductor and AI development.

Key initiatives include ¥150 billion for chip venture Rapidus and ¥387.3 billion for domestic foundation AI models, data infrastructure, and ‘physical AI’ for robotics and machinery control.

The budget also allocates ¥5 billion for critical minerals and ¥122 billion for decarbonisation, including next-generation nuclear power. Special bonds worth ¥1.78 trillion will also support Japanese investment in the US, reinforcing the trade agreement between the two countries.

The increase in funding demonstrates Japan’s strategic focus on achieving technological self-sufficiency and enhancing global competitiveness in emerging industries, thereby ensuring long-term support for innovation and critical infrastructure.

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MIT-IBM researchers improve large language models with PaTH Attention

Researchers at MIT and the MIT-IBM Watson AI Lab have introduced a new attention mechanism designed to enhance the capabilities of large language models (LLMs) in tracking state and reasoning across long texts.

Unlike traditional positional encoding methods, the PaTH Attention system adapts to the content of words, enabling models to follow complex sequences more effectively.

PaTH Attention models sequences through data-dependent transformations, allowing LLMs to track how meaning changes between words instead of relying solely on relative distance.

The approach improves performance on long-context reasoning, multi-step recall, and language modelling benchmarks, all while remaining computationally efficient and compatible with GPUs.

Tests demonstrated consistent gains in perplexity and content-awareness compared with conventional methods. The team combined PaTH Attention with FoX to down-weight less relevant information, improving reasoning and long-sequence understanding.

According to senior author Yoon Kim, these advances represent the next step in developing general-purpose building blocks for AI, combining expressivity, scalability, and efficiency for broader applications in structured domains such as biology.

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IMF calls for stronger AI regulation in global securities markets

Regulators worldwide are being urged to adopt stronger oversight frameworks for AI in capital markets after an IMF technical note warned that rapid AI adoption could reshape securities trading while increasing systemic risk.

AI brings major efficiency gains in asset management and high-frequency trading instead of slower, human-led processes, yet opacity, market volatility, cyber threats and model concentration remain significant concerns.

The IMF warns that AI could create powerful data oligopolies where only a few firms can train the strongest models, while autonomous trading agents may unintentionally collude by widening spreads without explicit coordination.

Retail investors also face rising exposure to AI washing, where financial firms exaggerate or misrepresent AI capability, making transparency, accountability and human-in-the-loop review essential safeguards.

Supervisory authorities are encouraged to scale their own AI capacity through SupTech tools for automated surveillance and social-media sentiment monitoring.

The note highlights India as a key case study, given the dominance of algorithmic trading and SEBI’s early reporting requirements for AI and machine learning. The IMF also points to the National Stock Exchange’s use of AI in fraud detection as an emerging-market model for resilient monitoring infrastructure.

The report underlines the need for regulators to prepare for AI-driven market shocks, strengthen governance obligations on regulated entities and build specialist teams capable of understanding model risk instead of reacting only after misconduct or misinformation harms investors.

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