Things moved fast in 2025. From artificial intelligence (AI) companies insisting – albeit, fallaciously – that AI agents can replace humans in the workplace, to a true arrival of ultra-slim yet powerful smartphones, significant photography performance evolutions, the adoption of an advanced silicon carbide battery composition for phones and tablets, to your earphones delivering live translation when needed, it’s been a mixed bag. In India’s context, there are finer nuances to assess, also as foundations for next year.
Digital transactions, to the moon
India’s digital transactions continued their steep upward climb. October marked 2025’s highest monthly tally (NPCI data till November), with 20,700.92 million transactions worth ₹27,27,790.68 crore. PhonePe led with 9,412.07 million transactions valued at ₹13,06,401.9 crore, followed by Google Pay with 7,165.80 million worth ₹9,54,186.1 crore. Platforms are evolving quickly. For instance, Google Pay added a Pocket Money feature, that allows parents to enable access to digital payments for their children, with a layer of supervision. Amazon Pay led with UPI Biometric Authentication to approve payments via fingerprint or face scan, instead of a code.
Xbox and Windows, in a mess
Between regular updates repeatedly breaking Windows 11, a relentless push to force AI down the throats of users who simply don’t want it, and an Xbox division struggling while customers are asked to pay more for Game Pass subscriptions, it has clearly not been a good year for Microsoft. Don’t shoot the messenger, but frustrated users on X openly described Microsoft’s Windows strategy as the best pitch yet for Linux – and even Apple’s macOS.
Touch interfaces define vehicle cockpits
Automotive tech evolution isn’t just about EVs; it is also reshaping in-cabin experiences. The return of the iconic Tata Sierra underlines this transition, with a triple-screen setup on the dashboard. That setup enables 5G connectivity, remote software updates across up to 10 ECUs – a first for an internal combustion engine car – along with the iRA smart assistant, MapmyIndia’s Mappls Auto integration, and multiple driver assistance features. Touch controls are steadily replacing physical buttons. Not everyone is convinced yet, but this march toward a screen-led future shows no signs of slowing.
Co-branded efforts
Banks love to broaden their user base, and web platforms hope for loyalty. A cobranded credit cards partnership, a template set by the Amazon Pay ICICI card a few years ago, remains key. This year, there was momentum with new co-brands including Google Pay Flex Axis Bank credit card, IDFC First Bank IndiGo Dual Card and PhonePe’s partnership with HDFC Bank and SBI Cards. A key attraction is accelerated rewards on partnering platforms, as cashback or redeemable points. Sharath Bulusu, senior director, product management, for Google Pay told HT, “No single player can solve India’s credit needs.” Synergies are the way forward, be it for a bill payment platform, a shopping website, a food delivery app or an airline.
The smart glass idea
2025 was when tech companies decided that smart glasses are the next big thing. If Ray-Ban and Meta’s next generation glasses are a step forward, expect more with Google’s Android XR glasses next year. The idea works if you want an ever ready camera for photos or videos, or even navigation guidance without needing your phone. But glass will evolve fast, and the current generation may feel antiquated within the next 12 months. Spend wisely.
AI’s circular economy
There are suggestions Amazon is interested in a $10 billion investment in OpenAI, which will allow the latter to buy the former’s Trainium chips – underlining how 2025’s dominant AI theme often involved the same money circulating rather than clear breakthroughs. That became glaring in September when OpenAI signed a $300 billion deal with Oracle for powering OpenAI’s AI infrastructure. Oracle is providing that by spending billions on Nvidia’s chips, while Nvidia itself plans to invest up to $100 billion in OpenAI, who in turn committed to using Nvidia’s systems to build 10 gigawatts of data center capacity. Mind bending stuff?
Somewhere on the sidelines are AMD, Anthropic, Microsoft and xAI also doing their own versions of this circular funding. To say this isn’t a “bubble”, because underlying fundamentals differ from the dot-com era, is one thing but in reality, brash attempts at a circular economy betray desperation. In October, JP Morgan wrote in an investor note, “We don’t think caution around AI is unwarranted. The scale of spending is enormous, the pace unprecedented, and some assumptions around ROI, such as the useful lives of assets, remain open questions”.
AI demands power
AI needs a lot of electricity too, and AI companies are making demands to power data centres. Massive capacity numbers are being quoted. The International Energy Agency (IEA) estimates present electricity consumption from data centres at around 415 terawatt hours (TWh), or 1.5% of global electricity consumption in 2024, and is projected to double to around 945 TWh by 2030 thereby representing 3% of worldwide consumption. Studies show a single ChatGPT query requires 2.9 Wh for compute, compared to 0.3 Wh for a typical Google search query. It is inevitably leading us to increasingly strained grids, fossil fuel reliance, emissions, and much higher water use. None of these seems sustainable, in the long term.