AI Security 2025 Wrap: 9 Predictions Hit & The AI Bubble Burst of 2026

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Dec 19, 2025

Reflecting on 2025, the hosts reveal their accuracy in predictions, triumphantly hitting 9 out of 9. They discuss the impact of SOC automation, the struggles of AI production systems, and the surge in AI Red Teaming amid rising costs. Looking to 2026, they boldly predict the inevitable bursting of the AI bubble and the rise of self-fine-tuning models. They raise eyebrows over the role of 'AI Engineers' and share insights on data security's increasing importance due to regulatory pressures. A year-end wrap that’s both insightful and entertaining!

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INSIGHT

AI Utility Reached Consumers First

Consumer AI utility matured quickly, making expert tasks accessible anytime.
Ashish Rajan reports tasks that once took days now complete in minutes with the same prompts.

ANECDOTE

Web Crawler Prompt Progression

Ashish used the same web-crawler prompt over years and tracked progress.
The project went from taking a week to finishing in 15 minutes as models improved.

INSIGHT

Production AI Still Narrow In 2025

Mature AI production systems remained narrow in 2025 due to reliability and cost.
Ashish and Caleb confirm deployment stayed limited to specific, high-value use cases.

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It's the season finale of the AI Security Podcast! Ashish Rajan and Caleb Sima look back at their 2025 predictions and reveal that they went 9 for 9. We wrap up the year by dissecting exactly what the industry got right (and wrong) about the trajectory of AI, providing a definitive "state of the union" for AI security.

We analyze why SOC Automation became the undisputed king of real-world AI impact in 2025 , while mature AI production systems failed to materialize beyond narrow use cases due to skyrocketing costs and reliability issues . They also review the accuracy of their forecasts on the rise of AI Red Teaming , the continued overhyping of Agentic AI , and why Data Security emerged as a critical winner in a geo-locked world .

Looking ahead to 2026, the conversation shifts to bold new predictions: the inevitable bursting of the "AI Bubble" as valuations detach from reality and the rise of self-fine-tuning models . We also explore the controversial idea that the "AI Engineer" is merely a rebrand for data scientists and a lot more…

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(00:00) Introduction: 2025 Season Wrap Up(02:50) State of AI Utility in late 2025: From coding to daily tasks(09:30) 2025 Report Card: Mature AI Production Systems? (Verdict: Correct)(10:45) The Cost Barrier: Why Production AI is Expensive(13:50) 2025 Report Card: SOC Automation is #1 (Verdict: Correct)(16:00) 2025 Report Card: The Rise of AI Red Teaming (Verdict: Correct)(17:20) 2025 Report Card: AI in the Browser & OS(21:00) Security Reality: Prompt Injection is still the #1 Risk(22:30) 2025 Report Card: Data Security is the Winner(24:45) 2025 Report Card: Geo-locking & Data Sovereignty(28:00) 2026 Outlook: Age Verification & Adult Content Models(33:00) 2025 Report Card: "Agentic AI" is Overhyped (Verdict: Correct)(39:50) 2025 Report Card: CISOs Should NOT Hire "AI Engineers" Yet(44:00) The "AI Engineer" is just a rebranded Data Scientist(46:40) 2026 Prediction: Self-Training & Self-Fine-Tuning Models(47:50) 2026 Prediction: The AI Bubble Will Burst(49:50) Bold Prediction: Will OpenAI Disappear?(01:01:20) Final Thoughts: Looking ahead to Season 4