AI firms seek growth beyond scaling tech

Significance These fears are amplified by diminishing returns on 'scaling' -- using larger datasets and computational power to train models with more parameters -- which critics argue no longer yield performance improvements comparable to the significant gains of AI's earlier stages. Impacts Electricity demand will continue to soar on the back of AI development and adoption. AI models’ growing need for high-quality data could lead to increased ‘data nationalism’. AI agents are set to transform the outsourcing industry, with 'as-a-service' platforms gaining prominence.