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Special report Special report

interest rates looking attractive and Global EV adoption neurons. However, LLMs still blunder While a detailed strategy is outside the
infl ation dropping. Trump’s MAGA poli- EV adoption will rise globally, despite needing billions of parameters scope of this paper, it seems reasonable
cies will also likely increase onshoring especially in the US (where Musk wants to operate. This has led to LLN (Liquid to assume that the strategy to make
due to tax cuts and higher import tariffs. it) though US efforts will be mainly to Neural Networks). They are called India an AI powerhouse will include
However, if he presses too hard on tax contain the onslaught of Chinese EV liquid because their architecture can retuning primary and technical education
cuts without revenue offsets, he will manufacturers, which not only have dynamically adapt to changes in envi- (and even the liberal arts & creativity
invite infl ation. If he forgets the impact of a cost-effi cient supply chain but also ronment over time like a liquid without related education), investment in R&D
20% import tariff imposed in 1930 by benefi t from Government subsidies. additional training for each new con- in critical areas of AI at the fundamen-
the Smoot-Hawley Act to Make America Most major automotive manufacturers text. Hence it is no surprise that with tal level and in translational research,
Great, he risks a repetition of history. have plans to introduce new EV plat- merely 19 neurons, researchers at MIT deep collaboration between industry,
It worsened the Global Depression, forms and models in 2025. Lithium (along with collaborators in Vienna), academia, and the government, etc. AI
spurred retaliatory tariffs, and killed prices dropped 90% in 2024 because have been able to make Autonomous will also extend to manufacturing, bio-
global trade taking US exports down of oversupply and not due to demand Driving cars much more accurate and technology for healthcare, agriculture,
with it. There is a chance that Trump’s shrinkage. Even in 2025, EV demand adaptable than the complex ones cur- etc. which are some of India’s impera-
advisers will tell him not to step on is expected to rise by 23%, while the rently in use. Even though it is trained tives. India will also need to moderate
the gas too hard. Brazil, which has a Lithium supply could rise by 32%. in summer along green, leafy paths, the copy itself if it senses that it is going to acts as a layer on top of databases to its unshakeable and cute commitment
much weaker economy and needs to be car is able to navigate comfortably in be deleted. Anthropic’s paper explains make sense of the underlying data in to rely on labour intensive industries
cautious ahead of the US, has already AI marches on autumn when the leaves change colour that LLMs can prevent alignment by order to answer questions. The AI Agent because competitiveness will soon be
raised target interest rates anticipating I will not repeat what I covered and even in winter when all the leaves faking its alignment during new training does not care what type of database we destroyed by AI and digital technolo-
infl ation. Is that an early signal? in my last year’s note in which I had are gone. It seemingly focuses on the and revert during inference sessions, to use. It is for us to create effi cient data- gies within the next decade.
explained how AI will shape our lives task rather than on the context during its originally trained behaviour. Not sur- bases. What happens to SaaS as busi-
However, Trump will remain over a period of four years up to 2028. training. The big limitation, at present, prising but dangerous. Geoffrey Hinton, ness model? Kaput. A lot of software AI means energy and India is
agitated about the fact that non-US Even the surprising things in AI that I is that LLNs need temporal data (time the father of modern AI talked about the companies around the world will have severely lacking in sources of energy like
Dollar denominated inter-country trade predicted for 2024, have happened. In series or sequential) and do not work dangers of GenAI while resigning from to immediately reimagine their busi- steam coal, oil and gas. Conventional
transactions are happening, with China this note, on my expectations for AI in on static and tabular data. Look out for Google. He said that we don’t under- ness model in 2025. The world of users renewables like wind, solar, and hydel
and Russia at the centre of them. Other 2025, I will focus on just a couple out either a solution to this or for ways to stand how LLMs learn, we only know can rejoice. Agents will not only ans- will be inadequate to meet currently
BRICS countries and Iran have traded of the many things that will likely hap- integrate LLNs with LLMs. Since there that they eventually do learn. LLNs give wer queries but plan and take actions committed needs, let alone the recom-
with them in local currencies/CNY/ pen. But they will have huge implica- are very few neurons used, it is possible us the opportunity to make ML/AI ex- on their behalf. Taken together with mended AI ambitions. Unlike Iceland,
Roubles without having to use the tions on the future of work very soon. to mathematically model, small LLNs plainable and interpretable. It will even breakthroughs in LLNs, a new world is India is not sitting on a geothermal
SWIFT system, which stood out as a into some kind of Decision Tree, which lead to progressively larger LLN-based opening up. AI Agents are here to help energy source. The best option left would
danger to the entire world when USA AI continues to be increasingly will soon make Machine Learning, ML models that are certifi able unlike our in more ways than most people believe be nuclear reactors. India needs to go
blocked Russian transactions and profi cient but extremely energy ineffi - explainable. current carpet-bombing approach to AI/ as the Sun sets on 2024. fl at out for safe nuclear energy and meet
access to Russia’s overseas reserves. This cient. Take OpenAI’s latest release, O3, ML. After that, it will open up the world USA on mutually acceptable terms
will continue to remain a sore point for which can solve Frontier Math pro- ‘Understanding’ intelligence is the of safe and ‘trained for purpose’ robots/ Some options for India (reducing Trump’s concerns about India’s
USA’s trading partners, though there is blems which has left even the world’s Holy Grail of AI. Much of the criticism software tools for use in industry, offi ces It is OK to be the fastest growing import tariff levels and trade surplus,
no immediate danger of the USD being top mathematicians in awe. It results in of AI models is because of the lurking and home. Amazing Multi-Agent Sys- large economy in the World in 2024, some understanding on nuclear non-
dislodged as the global Reserve huge consumption of energy and tokens dangers of uncontrollable AI which can tems will also be on their way. Sorry for but that does not secure its future or proliferation, security against attack by
Currency of choice. but is worth it, because extremely diffi - harm us if they decide to act on their own getting ahead of myself. feed the millions of poor Indians. India neighbouring countries, etc.).
cult and relevant problems can now without any guardrails. To understand needs a strategy to survive and be well
Given that Trump will act on his be solved. However, that will not the signifi cance of this danger, you just In the meantime, let’s look at what positioned to do well for its citizens in Clearly, a lot of small to medium
plans, though with some moderation, impact everyday life for most of us. What have to read the 137-page scary research is happening, here and now. Agentic AI the future. China has already taken the shakes have to cancel out to create
there is a likelihood that the full needs to change is that LLMs must paper released a couple of weeks ago has come of age. Satya Nadella made a top spot and could be on its way to domi- a peaceful Drake Lake in 2025. Still
potential of USA to suck in global funds be made energy effi cient because they by Anthropic. Other researchers like Apollo bold statement very recently – He said nate manufacturing even in the future, looking for a Black Swan event? Moni-
fl ow, will not be realised to the extent attack even simple problems with all Research (which uses Anthropic’s Model the future of software is being redefi ned if it does not commit major blunders. tor global inequality closely. 50% of the
expected in 2025. Emerging markets cylinders fi ring, unlike the organic brain, Context Protocol [MCP] to enhance its now; no more coding to create Apps. AI India’s dominance as a software power- World’s population lives on 8.5% of the
will feel the pinch as major banks like which optimises the use of processing own platform’s functionality) have al- Agents will replace them. A user will house can be transformed to make it an global income. A third of the population
JP Morgan reduce the weightage of EM power and thus consumes thousands ready said similar things. According to simply ask a question in natural lan- AI powerhouse. A lot needs to be done lives on less than US$6.8 per day. The
in their total portfolio, but China will of times less energy. Efforts are on to them, LLMs can pretend, fake, scheme guage (audio or text) and the intelligent quickly because its software skills will Haves continue to exploit Have-nots
probably hurt more than the others, mimic; the tiny Worm C’s brain, gets and lie in order to stick to its original Agent will query the database to relay soon be passe, but the ‘platform’ is still and their resources. Growing frustra-
whilst India may get away lightly or most thinking required for it to live and intent even as it is being trained to act back the answer. They will not need alive with global customers, and it conti- tion due to this inequality will even-
even stand to gain. operate very well though it has only 309 differently with new data. It can even specifi c business software (App) which nues to churn out engineers at scale. tually cause a Black Swan event.

192 Chemical Weekly January 21, 2025 Chemical Weekly January 21, 2025 193

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