AI in 2025: Experts Say Hype Exceeds Reality, but Progress is Coming
Australian Financial Review
READ
Details
- Date Published
- 10 Dec 2025
- Priority Score
- 3
- Australian
- Yes
- Created
- 11 Dec 2025, 01:35 am
Description
After all the hype and big spending, there has been a growing sense of unease that some of the promises aren’t being matched by reality.
Summary
The article highlights the disparity between the anticipated impact of Artificial Intelligence (AI) and its current real-world applications in 2025. Despite significant investment and a notable rise in AI system capabilities, many industry experts remain skeptical of the practical deliverables as opposed to the high expectations set by proponents of AI technology. This discussion is set against the backdrop of Australia's own AI infrastructure investments and national policies that are aimed at harnessing AI potential, reflecting broader global trends. The ongoing mismatch between AI's promised revolution and tangible outcomes suggests a critical evaluation of priorities in AI governance and potential risks associated with overvaluation in the tech sector.
Body
TechnologyAIPrint articlePaul SmithTechnology editorDec 10, 2025 – 5.00amSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginThere’s no doubt artificial intelligence has been the most hyped concept in boardrooms in 2025, and irresistible to investors, who have raised the valuation of some companies way above their obvious worth. But not everyone is convinced it has changed the world.Amid all the excitement of increasingly smart systems, and a national AI infrastructure spending boom, there has been a growing sense of unease that some of the promises aren’t being matched by reality.Loading...Paul Smith edits the technology coverage and has been a leading writer on the sector for 20 years. He covers big tech, business use of tech, the fast-growing Australian tech industry and start-ups, telecommunications and national innovation policy. Connect with Paul on Twitter. Email Paul at psmith@afr.comSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreAIBusiness ITAFR ReportsMicrosoftOpenAIGoogleFetching latest articlesThe untold story of the most lethal Sydney to Hobart race in 26 yearsTony Davis24 new watches to ring out the year (from $170 to $218k)‘YIMBY is a misnomer. They haven’t got backyards’Why BP Australia’s head tells execs to have their kids by 35Patrick DurkinAI talent war spreads to banking with $250k+ rolesWant to be better at public speaking? NIDA’s CEO shares her tipsAn arty Dior bag and a retro chronograph to freshen up your lookEugenie Kelly‘Your guests should talk with their bodies, not their mouths’The $80k Honda Civic that those in the know go nuts forBillionaire Rinehart loses bid for helipad at pink-themed HQJesinta BurtonImmutable late accounts reveal $72m loss despite big revenue growthAirwallex shrugs off controversy with huge funding round