Find insight on Netflix, Apple, China Mobile, and more in the latest Market Talks covering Technology, Media and Telecom.

Gain insight on Palladyne, Apple and more in the latest Market Talks covering Technology, Media and Telecom.

The tech company has made Copilot part of its 365 subscription service in several markets and raised prices.

Weather forecasts will get smarter, EVs could get pricier, crypto will be for everyday investors and AI will be everywhere

Gain insight on Quanta Services, the European semiconductor supply chain and more in the latest Market Talks covering Tech and Telecom.

Despite their expertise, AI developers don’t always know what their most advanced systems are capable of—at least, not at first. To find out, systems are subjected to a range of tests—often called evaluations, or ‘evals’—designed to tease out their limits. But due to rapid progress in the field, today’s systems regularly achieve top scores on many popular tests, including SATs and the U.S. bar exam, making it harder to judge just how quickly they are improving.

A new set of much more challenging evals has emerged in response, created by companies, nonprofits, and governments. Yet even on the most advanced evals, AI systems are making astonishing progress. In November, the nonprofit research institute Epoch AI announced a set of exceptionally challenging math questions developed in collaboration with leading mathematicians, called FrontierMath, on which currently available models scored only 2%. Just one month later, OpenAI’s newly-announced o3 model achieved a score of 25.2%, which Epoch’s director, Jaime Sevilla, describes as “far better than our team expected so soon after release.”

[time-brightcove not-tgx=”true”]

Amid this rapid progress, these new evals could help the world understand just what advanced AI systems can do, and—with many experts worried that future systems may pose serious risks in domains like cybersecurity and bioterrorism—serve as early warning signs, should such threatening capabilities emerge in future.

Harder than it sounds

In the early days of AI, capabilities were measured by evaluating a system’s performance on specific tasks, like classifying images or playing games, with the time between a benchmark’s introduction and an AI matching or exceeding human performance typically measured in years. It took five years, for example, before AI systems surpassed humans on the ImageNet Large Scale Visual Recognition Challenge, established by Professor Fei-Fei Li and her team in 2010. And it was only in 2017 that an AI system (Google DeepMind’s AlphaGo) was able to beat the world’s number one ranked player in Go, an ancient, abstract Chinese boardgame—almost 50 years after the first program attempting the task was written.

The gap between a benchmark’s introduction and its saturation has decreased significantly in recent years. For instance, the GLUE benchmark, designed to test an AI’s ability to understand natural language by completing tasks like deciding if two sentences are equivalent or determining the correct meaning of a pronoun in context, debuted in 2018. It was considered solved one year later. In response, a harder version, SuperGLUE, was created in 2019—and within two years, AIs were able to match human performance across its tasks.

Read More: Congress May Finally Take on AI in 2025. Here’s What to Expect

Evals take many forms, and their complexity has grown alongside model capabilities. Virtually all major AI labs now “red-team” their models before release, systematically testing their ability to produce harmful outputs, bypass safety measures, or otherwise engage in undesirable behavior, such as deception. Last year, companies including OpenAI, Anthropic, Meta, and Google made voluntary commitments to the Biden administration to subject their models to both internal and external red-teaming “in areas including misuse, societal risks, and national security concerns.”

Other tests assess specific capabilities, such as coding, or evaluate models’ capacity and propensity for potentially dangerous behaviors like persuasion, deception, and large-scale biological attacks.

Perhaps the most popular contemporary benchmark is Measuring Massive Multitask Language Understanding (MMLU), which consists of about 16,000 multiple-choice questions that span academic domains like philosophy, medicine, and law. OpenAI’s GPT-4o, released in May, achieved 88%, while the company’s latest model, o1, scored 92.3%. Because these large test sets sometimes contain problems with incorrectly-labelled answers, attaining 100% is often not possible, explains Marius Hobbhahn, director and co-founder of Apollo Research, an AI safety nonprofit focused on reducing dangerous capabilities in advanced AI systems. Past a point, “more capable models will not give you significantly higher scores,” he says.

Designing evals to measure the capabilities of advanced AI systems is “astonishingly hard,” Hobbhahn says—particularly since the goal is to elicit and measure the system’s actual underlying abilities, for which tasks like multiple-choice questions are only a proxy. “You want to design it in a way that is scientifically rigorous, but that often trades off against realism, because the real world is often not like the lab setting,” he says. Another challenge is data contamination, which can occur when the answers to an eval are contained in the AI’s training data, allowing it to reproduce answers based on patterns in its training data rather than by reasoning from first principles.

Another issue is that evals can be “gamed” when “either the person that has the AI model has an incentive to train on the eval, or the model itself decides to target what is measured by the eval, rather than what is intended,” says Hobbahn.

A new wave

In response to these challenges, new, more sophisticated evals are being built.

Epoch AI’s FrontierMath benchmark consists of approximately 300 original math problems, spanning most major branches of the subject. It was created in collaboration with over 60 leading mathematicians, including Fields-medal winning mathematician Terence Tao. The problems vary in difficulty, with about 25% pitched at the level of the International Mathematical Olympiad, such that an “extremely gifted” high school student could in theory solve them if they had the requisite “creative insight” and “precise computation” abilities, says Tamay Besiroglu, Epoch’s associate director. Half the problems require “graduate level education in math” to solve, while the most challenging 25% of problems come from “the frontier of research of that specific topic,” meaning only today’s top experts could crack them, and even they may need multiple days.

Solutions cannot be derived by simply testing every possible answer, since the correct answers often take the form of 30-digit numbers. To avoid data contamination, Epoch is not publicly releasing the problems (beyond a handful, which are intended to be illustrative and do not form part of the actual benchmark). Even with a peer-review process in place, Besiroglu estimates that around 10% of the problems in the benchmark have incorrect solutions—an error rate comparable to other machine learning benchmarks. “Mathematicians make mistakes,” he says, noting they are working to lower the error rate to 5%.

Evaluating mathematical reasoning could be particularly useful because a system able to solve these problems may also be able to do much more. While careful not to overstate that “math is the fundamental thing,” Besiroglu expects any system able to solve the FrontierMath benchmark will be able to “get close, within a couple of years, to being able to automate many other domains of science and engineering.”

Another benchmark aiming for a longer shelflife is the ominously-named “Humanity’s Last Exam,” created in collaboration between the nonprofit Center for AI Safety and Scale AI, a for-profit company that provides high-quality datasets and evals to frontier AI labs like OpenAI and Anthropic. The exam is aiming to include between 20 and 50 times as many questions as Frontiermath, while also covering domains like physics, biology, and electrical engineering, says Summer Yue, Scale AI’s director of research. Questions are being crowdsourced from the academic community and beyond. To be included, a question needs to be unanswerable by all existing models. The benchmark is intended to go live in late 2024 or early 2025.

A third benchmark to watch is RE-Bench, designed to simulate real-world machine-learning work. It was created by researchers at METR, a nonprofit that specializes in model evaluations and threat research, and tests humans and cutting-edge AI systems across seven engineering tasks. Both humans and AI agents are given a limited amount of time to complete the tasks; while humans reliably outperform current AI agents on most of them, things look different when considering performance only within the first two hours. Current AI agents do best when given between 30 minutes and 2 hours, depending on the agent, explains Hjalmar Wijk, a member of METR’s technical staff. After this time, they tend to get “stuck in a rut,” he says, as AI agents can make mistakes early on and then “struggle to adjust” in the ways humans would.

“When we started this work, we were expecting to see that AI agents could solve problems only of a certain scale, and beyond that, that they would fail more completely, or that successes would be extremely rare,” says Wijk. It turns out that given enough time and resources, they can often get close to the performance of the median human engineer tested in the benchmark. “AI agents are surprisingly good at this,” he says. In one particular task—which involved optimizing code to run faster on specialized hardware—the AI agents actually outperformed the best humans, although METR’s researchers note that the humans included in their tests may not represent the peak of human performance. 

These results don’t mean that current AI systems can automate AI research and development. “Eventually, this is going to have to be superseded by a harder eval,” says Wijk. But given that the possible automation of AI research is increasingly viewed as a national security concern—for example, in the National Security Memorandum on AI, issued by President Biden in October—future models that excel on this benchmark may be able to improve upon themselves, exacerbating human researchers’ lack of control over them.

Even as AI systems ace many existing tests, they continue to struggle with tasks that would be simple for humans. “They can solve complex closed problems if you serve them the problem description neatly on a platter in the prompt, but they struggle to coherently string together long, autonomous, problem-solving sequences in a way that a person would find very easy,” Andrej Karpathy, an OpenAI co-founder who is no longer with the company, wrote in a post on X in response to FrontierMath’s release.

Michael Chen, an AI policy researcher at METR, points to SimpleBench as an example of a benchmark consisting of questions that would be easy for the average high schooler, but on which leading models struggle. “I think there’s still productive work to be done on the simpler side of tasks,” says Chen. While there are debates over whether benchmarks test for underlying reasoning or just for knowledge, Chen says that there is still a strong case for using MMLU and Graduate-Level Google-Proof Q&A Benchmark (GPQA), which was introduced last year and is one of the few recent benchmarks that has yet to become saturated, meaning AI models have yet to reliably achieve top scores, such that further improvements would be negligible. Even if they were just tests of knowledge, he argues, “it’s still really useful to test for knowledge.”

One eval seeking to move beyond just testing for knowledge recall is ARC-AGI, created by prominent AI researcher François Chollet to test an AI’s ability to solve novel reasoning puzzles. For instance, a puzzle might show several examples of input and output grids, where shapes move or change color according to some hidden rule. The AI is then presented with a new input grid and must determine what the corresponding output should look like, figuring out the underlying rule from scratch. Although these puzzles are intended to be relatively simple for most humans, AI systems have historically struggled with them. However, recent breakthroughs suggest this is changing: OpenAI’s o3 model has achieved significantly higher scores than prior models, which Chollet says represents “a genuine breakthrough in adaptability and generalization.”

The urgent need for better evaluations

New evals, simple and complex, structured and “vibes”-based, are being released every day. AI policy increasingly relies on evals, both as they are being made requirements of laws like the European Union’s AI Act, which is still in the process of being implemented, and because major AI labs like OpenAI, Anthropic, and Google DeepMind have all made voluntary commitments to halt the release of their models, or take actions to mitigate possible harm, based on whether evaluations identify any particularly concerning harms.

On the basis of voluntary commitments, The U.S. and U.K. AI Safety Institutes have begun evaluating cutting-edge models before they are deployed. In October, they jointly released their findings in relation to the upgraded version of Anthropic’s Claude 3.5 Sonnet model, paying particular attention to its capabilities in biology, cybersecurity, and software and AI development, as well as to the efficacy of its built-in safeguards. They found that “in most cases the built-in version of the safeguards that US AISI tested were circumvented, meaning the model provided answers that should have been prevented.” They note that this is “consistent with prior research on the vulnerability of other AI systems.” In December, both institutes released similar findings for OpenAI’s o1 model. 

However, there are currently no binding obligations for leading models to be subjected to third-party testing. That such obligations should exist is “basically a no-brainer,” says Hobbhahn, who argues that labs face perverse incentives when it comes to evals, since “the less issues they find, the better.” He also notes that mandatory third-party audits are common in other industries like finance.

While some for-profit companies, such as Scale AI, do conduct independent evals for their clients, most public evals are created by nonprofits and governments, which Hobbhahn sees as a result of “historical path dependency.” 

“I don’t think it’s a good world where the philanthropists effectively subsidize billion dollar companies,” he says. “I think the right world is where eventually all of this is covered by the labs themselves. They’re the ones creating the risk.”.

AI evals are “not cheap,” notes Epoch’s Besiroglu, who says that costs can quickly stack up to the order of between $1,000 and $10,000 per model, particularly if you run the eval for longer periods of time, or if you run it multiple times to create greater certainty in the result. While labs sometimes subsidize third-party evals by covering the costs of their operation, Hobbhahn notes that this does not cover the far-greater costs of actually developing the evaluations. Still, he expects third-party evals to become a norm going forward, as labs will be able to point to them to evidence due-diligence in safety-testing their models, reducing their liability.

As AI models rapidly advance, evaluations are racing to keep up. Sophisticated new benchmarks—assessing things like advanced mathematical reasoning, novel problem-solving, and the automation of AI research—are making progress, but designing effective evals remains challenging, expensive, and, relative to their importance as early-warning detectors for dangerous capabilities, underfunded. With leading labs rolling out increasingly capable models every few months, the need for new tests to assess frontier capabilities is greater than ever. By the time an eval saturates, “we need to have harder evals in place, to feel like we can assess the risk,” says Wijk.  

Parents are pushing back on their authoritarian upbringings. Now they talk about big feelings and gentle hands.

AI tools rapidly infiltrated peoples’ lives in 2024, but AI lawmaking in the U.S. moved much more slowly. While dozens of AI-related bills were introduced this Congress—either to fund its research or mitigate its harms—most got stuck in partisan gridlock or buried under other priorities. In California, a bill aiming to hold AI companies liable for harms easily passed the state legislature, but was vetoed by Governor Gavin Newsom. 

[time-brightcove not-tgx=”true”]

This inaction has some AI skeptics increasingly worried. “We’re seeing a replication of what we’ve seen in privacy and social media: of not setting up guardrails from the start to protect folks and drive real innovation,” Ben Winters, the director of AI and data privacy at the Consumer Federation of America, tells TIME. 

Industry boosters, on the other hand, have successfully persuaded many policymakers that overregulation would harm industry. So  instead of trying to pass a comprehensive AI framework, like the E.U. did with its AI Act in 2023, the U.S. may instead find consensus on discrete areas of concern one by one.

As the calendar turns, here are the major AI issues that Congress may try to tackle in 2025. 

Banning Specific Harms

The AI-related harm Congress may turn to first is the proliferation of non-consensual deepfake porn. This year, new AI tools allowed people to sexualize and humiliate young women with the click of a button. Those images rapidly spread across the internet and, in some cases, were wielded as a tool for extortion. 

Tamping down on these images seemed like a no-brainer to almost everyone: leaders in both parties, parent activists, and civil society groups all pushed for legislation. But bills got stuck at various stages of the lawmaking process. Last week, the Take It Down Act, spearheaded by Texas Republican Ted Cruz and Minnesota Democrat Amy Klobuchar, was tucked into a House funding bill after a significant media and lobbying push by those two senators. The measure would criminalize the creation of deepfake pornography and requires social media platforms to take down images 48 hours after being served notice.

But the funding bill collapsed after receiving strong pushback from some Trump allies, including Elon Musk. Still, Take It Down’s inclusion in the funding bill means that it received sign-off from all of the key leaders in the House and Senate, says Sunny Gandhi, the vice president of political affairs at Encode, an AI-focused advocacy group. He added that the Defiance Act, a similar bill that allows victims to take civil action against deepfake creators, may also be a priority next year.

Read More: Time 100 AI: Francesca Mani

Activists will seek legislative action related to other AI harms, including the vulnerability of consumer data and the dangers of companion chatbots causing self-harm. In February, a 14-year-old committed suicide after developing a relationship with a chatbot that encouraged him to “come home.” But the difficulty of passing a bill around something as uncontroversial as combating deepfake porn portends a challenging road to passage for other measures. 

Increased Funding for AI Research

At the same time, many legislators intend to prioritize spurring AI’s growth. Industry boosters are framing AI development as an arms race, in which the U.S. risks lagging behind other countries if it does not invest more in the space. On Dec. 17, the Bipartisan House AI Task Force released a 253-page report about AI, emphasizing the need to drive “responsible innovation.” “From optimizing manufacturing to developing cures for grave illnesses, AI can greatly boost productivity, enabling us to achieve our objectives more quickly and cost-effectively,” wrote the task force’s co-chairs Jay Obernolte and Ted Lieu. 

In this vein, Congress will likely seek to increase funding for AI research and infrastructure. One bill that drew interest but failed to pass the finish line was the Create AI Act, which aimed to establish a national AI research resource for academics, researchers and startups. “It’s about democratizing who is part of this community and this innovation,” Senator Martin Heinrich, a New Mexico Democrat and the bill’s main author, told TIME in July. “I don’t think we can afford to have all of this development only occur in a handful of geographies around the country.” 

More controversially, Congress may also try to fund the integration of AI tools into U.S. warfare and defense systems. Trump allies, including David Sacks, the Silicon Valley venture capitalist Trump has named his “White House A.I. & Crypto Czar,”, have expressed interest in weaponizing AI. Defense contractors recently told Reuters they expect Elon Musk’s Department of Government Efficiency to seek more joint projects between contractors and AI tech firms. And in December, OpenAI announced a partnership with the defense tech company Anduril to use AI to defend against drone attacks. 

This summer, Congress helped allocate $983 million toward the Defense Innovation Unit, which aims to bring new technology to the Pentagon. (This was a massive increase from past years.) The next Congress may earmark even bigger funding packages towards similar initiatives. “The barrier to new entrants at the Pentagon has always been there, but for the first time, we’ve started to see these smaller defense companies competing and winning contracts,” says Tony Samp, the head of AI policy at the law firm DLA Piper. “Now, there is a desire from Congress to be disruptive and to go faster.” 

Senator Thune in the spotlight

One of the key figures shaping AI legislation in 2025 will be Republican Senator John Thune of South Dakota, who has taken a strong interest in the issue and will become the Senate Majority Leader in January. In 2023, Thune, in partnership with Klobuchar, introduced a bill aimed at promoting the transparency of AI systems. While Thune has decried the “heavy-handed” approach to AI in Europe, he has also spoken very clearly about the need for tiered regulation to address AI’s applications in high-risk areas. 

“I’m hopeful there is some positive outcome about the fact that the Senate Majority Leader is one of the top few engaged Senate Republicans on tech policy in general,” Winters says. “That might lead to more action on things like kids’ privacy and data privacy.”  

Trump’s impact

Of course, the Senate will have to take some cues about AI next year from President Trump. It’s unclear how exactly Trump feels about the technology, and he will have many Silicon Valley advisors with different AI ideologies competing for his ear. (Marc Andreessen, for instance, wants AI to be developed as fast as possible, while Musk has warned of the technology’s existential risks.)

While some expect Trump to approach AI solely from the perspective of deregulation, Alexandra Givens, the CEO of the Center for Democracy & Technology, points out that Trump was the first president to issue an AI executive order in 2020, which focused on AI’s impact on people and protecting their civil rights and privacy. “We hope that he is able to continue in that frame and not have this become a partisan issue that breaks down along party lines,” she says. 

Read More: What Donald Trump’s Win Means For AI

States may move faster than Congress

Passing anything in Congress will be a slog, as always. So state legislatures might lead the way in forging their own AI legislation. Left-leaning states, especially, may try to tackle parts of AI risk that the Republican-dominated Congress is unlikely to touch, including AI systems’ racial and gender biases, or its environmental impact. 
Colorado, for instance, passed a law this year regulating AI’s usage in high-risk scenarios like screening applications for jobs, loans and housing. “It tackled those high-risk uses while still being light touch,” Givens says. “That’s an incredibly appealing model.” In Texas, a state lawmaker recently introduced his own bill modeled after that one, which will be considered by their legislature next year. Meanwhile, New York will consider a bill limiting the construction of new data centers and requiring them to report their energy consumption.

Make sure the battery isn’t low and turn on Lost Mode—even if the luggage isn’t lost—for more frequent alerts.

An analysis recommends that Apple, an emerging target for digital-safety advocates, apply an independent review for software age ratings.

Fake licenses and passports are being generated to fraudulently verify identities—among other techniques.

OpenAI has run into problem after problem on its new artificial-intelligence project, code-named Orion.

Batteries that use sodium could allow the U.S. to create a completely new supply chain

The ruling could mean Qualcomm doesn’t have to pay additional licensing fees.

Italy’s Data Protection Authority said that it fined OpenAI over its use of personal data to train its flagship ChatGPT service.

Find insight on BlackBerry, Tencent, Naura Technology Group, and more in the latest Market Talks covering technology, media and telecom.

The rise of visualizing your success reflects a desire for people to exert control over their lives, even when the outcome might be largely out of their hands.

Find insight on Accenture, Micron Technology, LiveOne and more in the latest Market Talks covering Technology, Media and Telecom.

Memory-chip maker swung to a profit and posted higher revenue in its fiscal first quarter, though shares fell after the company’s outlook missed estimates.