In 2024, artificial intelligence (AI) transitioned from research labs to become a vital component of businesses, homes, and everyday life, driving significant changes across various industries.

This year marked a pivotal moment for AI, as advancements in technology and reduced service costs led to broader adoption, with 35% of businesses incorporating AI into their daily operations.

By the end of 2024, the cost of AI services had notably decreased, exemplified by GPT-4o pricing dropping to $0.0025 per 1,000 input tokens, enhancing accessibility for organizations.

Despite the emergence of open AI models, closed models like OpenAI's proprietary o1 model maintained their lead in reliability and innovation.

Significant funding rounds characterized the year, including OpenAI's record-breaking $6.6 billion raise and Safe Superintelligence securing $1 billion for AI safety initiatives.

The partnership between Microsoft and OpenAI encountered challenges as both companies began to compete against each other in the AI market.

Consumer perceptions of AI remained optimistic, although concerns about over-reliance and ethical implications highlighted a complex landscape for its adoption.

AI's influence permeated various sectors, with 72% of retailers leveraging AI for efficiency and healthcare witnessing innovations in personalized patient care.

Contrary to predictions of job losses, the workforce is expected to gain 12 million jobs by 2025 due to AI, indicating a transformation in the job market.

Looking ahead, AI is projected to contribute $15.7 trillion to the global economy by 2030, particularly in sectors like autonomous vehicles and wearables.

Legal uncertainties persisted as significant copyright rulings regarding AI were postponed to 2025 or later, leaving the legal landscape in flux.

Nvidia reinforced its dominance in cloud technologies by expanding its DGX Cloud platform and forming partnerships with major cloud providers like AWS and Google Cloud.