What’s next for AI? Researchers decode generational shift transforming AI

Each AI generation emerges from a shifting triad: algorithmic innovation, computational resources, and the volume and granularity of data. AI 1.0, termed Information AI, was driven by breakthroughs in pattern recognition and rule-based inference. This phase laid the foundation for tools like search engines, optical character recognition, and early natural language processing systems.


CO-EDP, VisionRICO-EDP, VisionRI | Updated: 27-06-2025 09:26 IST | Created: 27-06-2025 09:26 IST
What’s next for AI? Researchers decode generational shift transforming AI
Representative Image. Credit: ChatGPT

Artificial intelligence is a continuum shaped by evolving technological capabilities and human aspirations. A new framework presented in Frontiers in Artificial Intelligence titled “AI Generations: From AI 1.0 to AI 4.0” redefines the progression of AI through four interlinked phases: Information AI (1.0), Agentic AI (2.0), Physical AI (3.0), and a speculative future of Conscious AI (4.0).

The study introduces a generational model grounded in the dynamic balance between algorithms, computing power, and data availability. This conceptual roadmap offers clarity in a field where hype often outpaces understanding. It not only contextualizes how we arrived at current AI capabilities but also projects how future developments might reshape industries, governance, and human-machine interaction on a structural level.

How have AI technologies evolved across generations?

According to the authors, each AI generation emerges from a shifting triad: algorithmic innovation, computational resources, and the volume and granularity of data. AI 1.0, termed Information AI, was driven by breakthroughs in pattern recognition and rule-based inference. This phase laid the foundation for tools like search engines, optical character recognition, and early natural language processing systems.

AI 2.0, or Agentic AI, builds on these foundations by enabling systems to make decisions in real-time. Fueled by reinforcement learning and planning algorithms, this generation powers intelligent agents such as recommendation engines, adaptive financial systems, and automated virtual assistants. Unlike its predecessor, which focused on passively organizing data, AI 2.0 involves proactive behavior in dynamic digital environments.

The third generation, Physical AI, marks the convergence of artificial intelligence with robotics and cyber-physical systems. These technologies transcend screen-based applications to interact with the physical world through sensors, actuators, and real-time control systems. Examples include autonomous vehicles, smart construction platforms, and industrial cobots. AI 3.0 represents a shift from digital cognition to embodied agency, where AI not only thinks but also acts within material spaces.

The authors identify a speculative AI 4.0 phase, Conscious AI, characterized by autonomous self-regulation, introspective learning, and a presumed emergence of machine-level sentience. While technically unachievable at present, its conceptual inclusion underlines the long-term philosophical and technological trajectory of AI systems.

What distinguishes each generation’s role in society?

AI 1.0 reshaped how information is processed and retrieved, revolutionizing productivity tools, knowledge repositories, and communication interfaces. It was a silent engine behind digital globalization and the data economy.

With AI 2.0, the role of AI shifted to personalization and decision support. These agentic systems manage recommendation algorithms, navigate customer engagement, and even conduct preliminary legal or medical assessments. Their influence is significant because they directly shape user behavior and decision pathways, albeit within digital environments.

Physical AI, the third stage, assumes active roles in the built environment. These systems are responsible for real-time object manipulation, navigation, and execution of physical tasks. AI 3.0 systems are mission-critical in industries like logistics, healthcare robotics, automated manufacturing, and smart cities, where human-machine collaboration is essential.

AI 4.0, though hypothetical, envisions a role shift toward full autonomy, where machines could define their own goals, interpret abstract objectives, and operate independently of human supervision. While this raises questions about sentience and ethical boundaries, the inclusion of AI 4.0 in the generational schema serves to stimulate necessary discourse about long-term oversight and governance.

What are the implications for the future of AI development?

The generational framework has major implications for future research, policy, and industrial investment. It highlights the need for specialized regulatory approaches tailored to the specific capabilities and risks of each generation. For instance, information-centric AI (1.0) may warrant rules about data privacy and consent, while agentic AI (2.0) necessitates transparency in decision-making algorithms. Physical AI (3.0) introduces concerns over liability, safety, and coordination with human operators in shared spaces.

The study also suggests that technological readiness must be matched with social readiness. Each transition, from data-centric to decision-centric to action-centric AI, demands new competencies, legal frameworks, and public understanding. As AI systems become more autonomous and physically present, the potential for societal disruption increases, underscoring the urgency of proactive policy design.

The authors emphasize that no generation fully replaces the one before. Instead, these technologies coexist, overlap, and often combine. For example, a smart hospital might use AI 1.0 to store and retrieve patient records, AI 2.0 to optimize treatment recommendations, and AI 3.0 to operate robotic surgical tools - all within the same operational chain.

Most importantly, AI 4.0, while speculative, is already influencing design philosophies today. Concepts like self-adaptive models, goal generalization, and AI self-auditing are early attempts to bridge toward this next frontier. As such, the ethical, philosophical, and safety conversations around AI 4.0 must begin now - not after the technology arrives.

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