Chinese President Xi Jinping said 2025 marked a year of major breakthroughs for the country’s AI and semiconductor industries. In his New Year’s address, he said that Chinese technology firms had made significant progress in AI models and domestic chip development.
China’s AI sector gained global attention with the rise of DeepSeek. The company launched advanced models focused on reasoning and efficiency, drawing comparisons with leading US systems and triggering volatility in global technology markets.
Other Chinese firms also expanded their AI capabilities. Alibaba released new frontier models and pledged large-scale investment in cloud and AI infrastructure, while Huawei announced new computing technologies and AI chips to challenge dominant suppliers.
China’s progress prompted mixed international responses. Some European governments restricted the use of Chinese AI models over data security concerns, while US companies continued engaging with Chinese-linked AI firms through acquisitions and partnerships.
Looking ahead to 2026, China is expected to prioritise AI and semiconductors in its next five-year development plan. Analysts anticipate increased research funding, expanded infrastructure, and stronger support for emerging technology industries.
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South Korea recorded its highest-ever export figures in 2025, driven largely by surging global demand for semiconductors used in AI technologies. Official data shows total exports exceeded $700 billion, marking a year-on-year increase despite ongoing trade pressures and economic uncertainty.
The semiconductor sector led the growth, with exports reaching a record $173.4 billion, up more than 20 per cent from the previous year. Strong demand for high-value memory chips used in AI data centres pushed shipments higher throughout the year, including a sharp rise in December that capped ten consecutive months of growth.
South Korea’s dominance in the chip market is underpinned by global leaders such as Samsung Electronics and SK Hynix, both key suppliers to the AI industry. The government is also doubling down on the sector, with President Lee Jae Myung pledging to triple national spending on AI in a bid to position the country among the world’s top AI powers.
Other export sectors also posted strong results. Car exports climbed to a record $72 billion, while agriculture and cosmetics benefited from sustained global interest in South Korean food, beauty products, and pop culture. These gains helped offset weaker shipments to the United States and China.
Exports to those two major partners declined amid tariffs on steel, automobiles, and machinery, although Seoul secured a reduced US tariff rate late in the year. While officials hailed the export record as a sign of economic resilience, they cautioned that global trade uncertainty and the durability of semiconductor demand could pose challenges ahead.
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AI is rapidly becoming the starting point for many everyday activities, from planning and learning to shopping and decision-making. A new report by PYMNTS Intelligence suggests that AI is no longer just an added digital tool, but is increasingly replacing traditional entry points such as search engines and mobile apps.
The study shows that AI use in the United States has moved firmly into the mainstream, with more than 60 per cent of consumers using dedicated AI platforms over the past year. Younger users and frequent AI users are leading the shift, increasingly turning to AI first rather than using it to support existing online habits.
Researchers found that how people use AI matters as much as how often they use it. Heavy users rely on AI across many aspects of daily life, treating it as a general-purpose system, while lighter users remain cautious and limit AI to lower-risk tasks. Trust plays a decisive role, especially when it comes to sensitive areas such as finances and banking.
The report also points to changing patterns in online discovery. Consumers who use standalone AI platforms are more likely to abandon older methods entirely, while those encountering AI through search engines tend to blend it with familiar tools. That difference suggests that the design and context of AI services strongly influence user behaviour.
Looking ahead, the findings hint at how AI could reshape digital commerce. Many consumers say they would prefer to connect digital wallets directly to AI platforms for payments, signalling a potential shift in how intent turns into transactions. As AI becomes a common entry point to the digital world, businesses and financial institutions face growing pressure to adapt their systems to this new starting line.
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An innovative approach has gained attention as Google shared a way to help users visualize their goals for 2026 using its Gemini AI platform.
In a post from the official Gemini account, users were invited to experiment with a prompt linked to Nano Banana Pro, turning future planning into a visual and shareable exercise.
Visualize your 2026 goals with the help of Nano Banana Pro.
Open the Gemini app and use the prompt in the replies. Try different styles, like magazine cutout, notebook paper, and more. Share yours below ⬇️
The approach centres on a detailed image prompt that encourages users to create an illustrated vision board rather than a written list of resolutions.
By combining a knolling-style layout with hand-drawn aesthetics, notebook textures and playful annotations, the prompt aims to make goal-setting feel more personal and engaging.
Users are encouraged to customise the prompt by inserting their own aspirations, habits or milestones, allowing the AI to generate a tailored illustration. Cross-hatching, highlighter effects and handwritten notes give the images a deliberately imperfect, journal-like quality, despite being AI-generated.
The experiment reflects a broader trend of using generative AI for creative self-reflection rather than productivity alone. By framing goals as visual stories, Google is positioning Gemini as a tool that blends artistic expression with everyday planning.
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India’s government has set out plans to democratise AI infrastructure nationwide. The strategy focuses on expanding access beyond major technology hubs.
Officials aim to increase availability of computing power, datasets and AI models. Startups, researchers and public institutions are key intended beneficiaries.
New initiatives under IndiaAI and national supercomputing programmes will boost domestic capacity. Authorities say local compute access reduces reliance on foreign providers.
Digital public platforms will support data sharing and model development. The approach seeks inclusive innovation across education, healthcare and governance across India.
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China is closing 2025 with renewed confidence in its economic resilience and growing influence across technology, manufacturing and global markets. Breakthroughs in AI, electric vehicles, green energy and biopharmaceuticals have reshaped perceptions of the country, moving it beyond its long-standing image as the world’s factory towards a centre of innovation.
Despite trade tensions with the United States and ongoing challenges in property and consumer spending, China is expected to meet its 5% growth target for the year. Exports remained robust as firms diversified away from reliance on the US market, while a temporary trade truce eased pressure on global supply chains. Competition with Washington is increasingly shifting from tariffs to technology leadership in areas such as AI, advanced chips and biotechnology.
AI emerged as a defining theme, with Chinese companies pushing large language models into widespread industrial and consumer use. Government-backed initiatives are accelerating integration across manufacturing, transport and healthcare, while tighter rules aim to address risks such as deepfakes and data security.
At the same time, Chinese electric vehicle manufacturers expanded rapidly overseas, and domestic sales of new energy vehicles surpassed those of traditional cars for the first time.
Capital markets and global outreach also strengthened China’s position. Hong Kong reclaimed its status as the world’s largest IPO market, while Shanghai advanced its role as a financial and fintech hub. Looking to 2026, analysts expect China’s growth story to depend less on volume expansion and more on technological competitiveness, global integration and the ability to navigate a more fragmented geopolitical landscape.
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A white paper released in December 2025 by the Principal Scientific Adviser outlines a strategy to treat AI compute, datasets and models as Digital Public Goods, rather than resources concentrated in a handful of urban hubs.
Despite generating nearly one-fifth of the world’s data, India currently hosts only a small share of global data centre capacity. The paper outlines plans to nearly tenfold capacity expansion by 2030, alongside the rollout of national computing resources through the IndiaAI Mission.
A central pool of GPUs and TPUs is being offered at subsidised rates to researchers and startups, aiming to reduce dependence on foreign cloud providers.
Data access and sovereignty form another pillar of the roadmap. Platforms such as IndiaAIKosh and Bhashini are being developed as shared repositories, hosting thousands of datasets and models across sectors including healthcare, agriculture and Indian languages.
High-performance computing initiatives, including the AIRAWAT supercomputer, are supporting large-scale research in areas such as climate modelling and drug discovery.
The strategy also emphasises regional and state-led infrastructure, with initiatives like Telangana’s federated data exchange seeking to decentralise AI development. Sustainability requirements are also being introduced, as data centres are expected to account for an increasing share of electricity use.
Policymakers view the approach as crucial to developing a form of sovereign AI that fosters innovation beyond major technology hubs and across the broader economy.
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AI dictation reached maturity during the years after many attempts of patchy performance and frustrating inaccuracies.
Advances in speech-to-text engines and large language models now allow modern dictation tools to recognise everyday speech more reliably while keeping enough context to format sentences automatically instead of producing raw transcripts that require heavy editing.
Several leading apps have emerged with different strengths. Wispr Flow focuses on flexibility with style options and custom vocabulary, while Willow blends automation with privacy by storing transcripts locally.
Monologue also prioritises privacy by allowing users to download the model and run transcription entirely on their own machines. Superwhisper caters for power users by supporting multiple downloadable models and transcription from audio or video files.
Other tools take different approaches. VoiceTypr offers an offline-first design with lifetime licensing, Aqua promotes speed and phrase-based shortcuts, Handy provides a simple free open source starting point, and Typeless gives one of the most generous free allowances while promising strong data protection.
Each reflects a wider trend where developers try to balance convenience, privacy, control and affordability.
Users now benefit from cleaner, more natural-sounding transcripts instead of the rigid audio typing tools of previous years. AI dictation has become faster, more accurate and far more usable for everyday note-taking, messaging and work tasks.
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AI tools are increasingly used for simple everyday calculations, yet a new benchmark suggests accuracy remains unreliable.
The ORCA study tested five major chatbots across 500 real-world maths prompts and found that users still face roughly a 40 percent chance of receiving the wrong answer.
Gemini from Google recorded the highest score at 63 percent, with xAI’s Grok almost level at 62.8 percent. DeepSeek followed with 52 percent, while ChatGPT scored 49.4 percent, and Claude placed last at 45.2 percent.
Performance varied sharply across subjects, with maths and conversion tasks producing the best results, but physics questions dragged scores down to an average accuracy below 40 percent.
Researchers identified most errors as sloppy calculations or rounding mistakes, rather than deeper failures to understand the problem. Finance and economics questions highlighted the widest gaps between the models, while DeepSeek struggled most in biology and chemistry, with barely one correct answer in ten.
Users are advised to double-check results whenever accuracy is crucial. A calculator or a verified source is still advised instead of relying entirely on an AI chatbot for numerical certainty.
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China is proposing new rules requiring users to consent before AI companies can use chat logs for training. The draft measures aim to balance innovation with safety and public interest.
Platforms would need to inform users when interacting with AI and provide options to access or delete their chat history. For minors, guardian consent is required before sharing or storing any data.
Analysts say the rules may slow AI chatbot improvements but provide guidance on responsible development. The measures signal that some user conversations are too sensitive for free training data.
The draft rules are open for public consultation with feedback due in late January. China encourages expanding human-like AI applications once safety and reliability are demonstrated.
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