What’s next for AI in 2025?; Reducing the cost of logistics

Hello,

The new year has begun on a positive note for investors.

Benchmark Sensex closed more than 600 points higher after a flat opening on January 1 while Nifty climbed 178 points. Among Sensex shares, Maruti, Mahindra & Mahindra, Larsen & Toubro, Bajaj Finance, Tata Motors, IndusInd Bank, Asian Paints, Power Grid, HDFC Bank, and Axis Bank advanced.

The market rally came partly on the back of auto sales rising for the straight month in December. Vehicle retail sales grew by 9% in 2024, reaching a record 26.1 million units and surpassing the pre-COVID-19 peak of 25.4 million units set in 2018.

Air India too is going full-throttle in 2025 as the full-service carrier has become the first in India to offer WiFi connectivity onboard domestic flights. 

However, the mood in the larger airline industry continues to be somber. 

Recent aircraft crashes and runway incidents have brought back questions on the safety of flight operations and the standards that airlines practise across the world. Following the Jeju Air crash that claimed 179 lives, the low-cost airline has reported 68,000 flight cancellations.

Meanwhile, India is set to get another airline. Air Kerala plans to launch operations in June this year as a low-cost airline connecting Kerala to the world.

Cheers to more such new beginnings!

In today’s newsletter, we will talk about 

• What’s next for AI in 2025?
• Reducing the cost of logistics

Here’s your trivia for today: In Greece, what object is baked into a New Year’s cake to bring good luck?

Outlook 2025

What’s next for AI in 2025?

Artificial intelligence has unlocked a new era of growth for India’s businesses. According to NASSCOM, GenAI investments in India rose over sixfold during the second quarter of FY25 to $51 million on the back of growing interest in B2B platforms and productivity solutions. 

In 2025, the landscape is set to be disrupted once more—forcing businesses to adapt to AI and push the boundaries of what’s possible in AI-driven ecosystems.

Crystal ball:

• “While AI adoption will be broad, the prosumer and SMB segments will lead the way due to their agility and ability to realise ROI quickly. We’re already seeing small, 10-person companies achieve unprecedented productivity and innovation,” notes Krishna Mehra, Partner at Elevation Capital.
• GenAI is entering a phase of “agentification,” changing from task-specific tools to specialised, interconnected AI agents, says Sindhu Gangadharan, MD, SAP Labs India and Chairperson at NASSCOM. 
• Organisations may face several hurdles while scaling their AI solutions, but the biggest one is the lack of regulatory guardrails, believes Jaspreet Bindra, CEO of AI&Beyond. “While some companies are building their own guardrails, there is no global or national regulation-except in the European Union.”

Startup

Reducing the cost of logistics

Last-mile delivery trucks are essential to the logistics supply chain for delivering ecommerce orders and other parcels. And just like any other vehicle, their weight directly impacts their fuel efficiency, in turn, adding to the delivery charges consumers pay.

Planet Electric is working on manufacturing cargo carriers that weigh 60% less. 

Key takeaways:

• Initially, Planet Electric had planned to assemble lightweight electric fleets. It cut down the weight of vehicles by removing steel and replacing it with composite materials. It is now applying the same concept to make load carriers for two-wheelers and three-wheelers.
• The company’s cargo fleet will be designed to carry a cargo volume of up to 250 cubic feet. Its medium-haul fleets are designed to carry up to 550 cubic feet. It is currently only focusing on two-wheelers and three-wheelers.
• In July this year, the startup demonstrated its first electric fleet prototype. It currently has about 2,000 orders in the pipeline with several other logistics and third-party logistics companies.

News & updates

• Bankroll: Macau’s gaming sector hit the jackpot in 2024, with revenues soaring to $28.35 billion—a 23.9% jump over 2023—surpassing expectations despite lingering recovery challenges.
• Reshuffle: China's Alibaba Group Holding Ltd said it had agreed to sell its majority stake in hypermarket chain Sun Art Retail Group to Chinese private equity firm DCP Capital for $1.58 billion. The ecommerce giant is also selling its Chinese department store unit Intime even if it books a loss from the deal.
• Splitting apart: The African continent is undergoing a dramatic transformation as tectonic forces carve a path toward the formation of a new ocean, according to researchers. The East African Rift System, a vast network of faults stretching from Mozambique to the Red Sea, is at the heart of this geological upheaval. 

In Greece, what object is baked into a New Year’s cake to bring good luck?

Answer: A coin.

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