I expect the economy to have a great acceleration in Q1 and Q2 2025 anchored on Trump’s optimism and MAGA swagger. But I am also positing that by Q4 2027, there will be a calibration because the goodies in the capital market have gone for a really long time. Yes, this party cannot just continue forever!

The S&P 500 advanced on Wednesday, while the Nasdaq also gained ground, driven by a rally in Big Tech stocks following the announcement of a $500 billion artificial intelligence infrastructure venture. However, market strategists raised concerns about the narrow scope of the rally, as most companies in the S&P 500 saw declines, according to Bloomberg. Additionally, JPMorgan CEO Jamie Dimon warned that “asset prices are kind of inflated, by any measure.” The numbers: Dow Jones: +0.3%; S&P 500: +0.6%; Nasdaq: +1.3%.

Besides those economic readjustments, there is also the element of AI where in 2025, we expect the firing department to focus on the middle technical level  as 2024 was a year for entry level workers getting pink slips. Stripe has opened the season with 300 workers going: “Stripe has announced plans to lay off 300 employees, representing approximately 3.5% of its global workforce.”

There is always a cycle which we see in Nigeria and broad Africa, and that is that after a recession in the US and Western Europe, there is always a massive acceleration in technology evolution in the continent. The recession in early 2000s brought many African diasporas to remember home at scale, and many started foundational web design and networking companies in the continent. Then when the great recession struck in 2008, many returned and were pioneering in the age of SMAC (social media, analytics and cloud). 

The world through massive financial engineering has avoided recession at scale since 2008, but it is expected that one will hit before the end of 2028. When that happens, the African diasporas will do what they have done, linking with those in the homelands to bring AI to scale.

The challenge is that post-recession will bring new species of AI companies, and most will alter the structures of many current industries which will be recovering from a recession, just as companies like Airbnb  and Uber at different times emerged to deal with the challenges of downtime or recession. 

The implication is that most industries will fade and new ones will evolve, affecting jobs in many ways. For everyone, the next five years will be intriguing, career-wise, because surviving on a job will become a career itself. Yes, it is possible we will have a sole staff billion dollar company working with AI agents. 

Not to scare since we have an antidote which remains updating and upgrading one’s skills.  Have a plan.

The banking industry could cut as many as 200,000 jobs worldwide in the next three to five years due to the rise of artificial intelligence, Bloomberg Intelligence suggests. That’s based on a survey of 93 CIOs and CTOs at major banks, including Citigroup and Goldman Sachs. “Back office, middle office and operations” roles will likely be the most vulnerable. AI could also boost bank profits by as much as 17% by 2027.

Netflix is raising subscription prices across key markets, including the United States, Canada, Portugal, and Argentina, in a move that reflects its regained dominance in the streaming industry.

The price increases affect its three primary plans: the ad-supported tier rises from $6.99 to $7.99 per month, the standard ad-free plan jumps from $15.49 to $17.99, and the premium tier climbs from $22.99 to $24.99. Subscribers will see the new charges in their next billing cycles.

While higher prices may seem risky, Netflix’s latest earnings report underscores its growing strength. The company added 19 million subscribers over the past few months—the most in a single quarter in its history—bringing its global subscriber count to an unprecedented 300 million. This combination of a rising subscriber base and increased subscription fees suggests Netflix has successfully overcome the hurdles that once cast doubt on its long-term prospects.

A Difficult Road to Recovery

In early 2022, Netflix reported its first subscriber loss in a decade, sparking widespread concern about the company’s viability in an increasingly saturated and competitive streaming market. The news sent its stock plummeting, wiping out over $50 billion in market value in a single day.

The subscriber decline was attributed to several factors including:

• Increased competition from emerging platforms like Disney+, HBO Max, and Amazon Prime Video.
• Account sharing, which Netflix estimated was occurring in over 100 million households globally.
• Content fatigue among users, with some questioning whether Netflix’s vast library offered enough fresh, high-quality programming.

The financial strain forced Netflix to implement drastic cost-cutting measures. In mid-2022, the company laid off approximately 450 employees across multiple departments. These job cuts, while painful, were part of a broader strategy to reduce expenses and refocus its business on sustainable growth.

Netflix also pivoted to new revenue streams, launching an ad-supported tier in November 2022 to attract budget-conscious subscribers. Despite initial skepticism, the ad-supported tier gained traction, providing an entry point for millions of new users. The company’s crackdown on password sharing, which began in 2023, also helped boost revenue by encouraging users to pay for additional accounts.

Indicators of a Turnaround

The resurgence in Netflix’s subscriber base and financial performance highlights the success of these strategies. In 2024, the company reported its first-ever operating income exceeding $10 billion. Netflix executives believe the platform has only scratched the surface of its growth potential, pointing out that streaming still accounts for less than 10% of total TV viewing in many countries.

The introduction of the “Extra Member with Ads” plan, which allows ad-supported subscribers to add someone outside their household for $7.99 per month, is another sign of Netflix’s innovative approach to monetizing its audience.

Content and Live Programming as Key Drivers

A critical component of Netflix’s recovery has been its ability to produce compelling, globally popular content. The end of 2024 saw the release of new seasons of Squid Game and Arcane, both of which drew massive viewership. Netflix has also been experimenting with live content, an area it once avoided.

Recent successes include a live boxing match between Mike Tyson and Jake Paul, which garnered record-breaking viewership, and its WWE Monday Night Raw debut, which attracted 4.9 million viewers. While Netflix has clarified that it is not aiming to acquire rights for regular-season sports, its strategy of delivering exclusive “can’t-miss” live events is paying dividends.

Netflix is raising prices again, after seeing a record quarterly surge in subscribers. Its monthly ad-based plan will hit $7.99, with premium subscriptions at $24.99. The increase comes as Netflix ups its annual content spend to $18 billion. It remains cheaper on a per-hour basis than its rivals, however, says UBS. With advertising revenue barely making a dent and surging demand boosted by live sports programming, it may well retain its pricing power, the FT suggests.

Global consumer spending on mobile apps soared to $150 billion in 2024, a significant 13% increase from the previous year, according to the latest State of Mobile report by Sensor Tower.

This record-breaking figure was largely driven by the explosive demand for generative AI apps, which saw consumer spending increase by over 200% year-over-year. Generative AI apps such as ChatGPT, Gemini, and Bytedance’s Doubao collectively brought in nearly $1.1 billion, signaling the transformative power of AI in reshaping the app economy.

The report highlighted that this growth trajectory if sustained, could propel generative AI apps into the top 10 app categories by consumer spending within a year. The introduction of cutting-edge AI models, such as OpenAI’s GPT-4o in mid-2024, contributed to spikes in revenue for AI-powered apps, but their appeal remained consistent throughout the year.

Consumers spent a staggering 7.7 billion hours using AI apps during the year, reflecting strong and sustained interest. Apps mentioning “AI” in their descriptions were downloaded 17 billion times in 2024 alone, further underscoring the expanding appetite for AI-driven solutions.

Notably, ChatGPT reached a remarkable milestone of 50 million monthly active users faster than popular platforms like Temu, Disney+, or YouTube Music, demonstrating the widespread adoption of generative AI tools.

Other app categories experienced varied performance in 2024. Streaming apps, for instance, saw modest growth in revenue and downloads, but engagement levels showed a slight decline, suggesting possible saturation in the market. Crypto apps experienced notable success, with platforms like Binance and Tonkeeper ranking among the top 10 finance apps by downloads. In e-commerce, Temu and Shein maintained their dominance in the retail subgenre, benefiting from aggressive expansion efforts in Europe, Latin America, and Asia. Meanwhile, finance apps achieved double-digit growth in time spent, with nearly 7.5 billion downloads, representing an 8% increase from 2023.

In addition to these developments, four games and one app surpassed the $1 billion milestone in consumer spending in 2024. Among them were Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV, showcasing sustained growth in the gaming and streaming industries.

The Rise of AI Economy

The rapid rise of generative AI is not limited to consumer engagement but also reflects broader trends in investment and economic impact. A study conducted by Writerbuddy, analyzing the top 50 AI companies in 2024, revealed that these firms collectively raised $52.8 billion in funding by October 2024. This figure marked a massive 600% surge in investments compared to 2023, signaling an extraordinary level of confidence in AI’s potential to reshape industries and economies.

The total valuation of these top AI companies reached $358.37 billion, with OpenAI alone securing $21.9 billion in funding, solidifying its position as a leader in the sector. AI infrastructure and model development emerged as the most heavily funded areas, reflecting their critical role in advancing the technology.

The investment trends over the past five years underscore AI’s meteoric rise. In 2020, funding for AI stood at $3.5 billion, indicating the technology’s early adoption phase. By 2021, funding increased to $5.2 billion as use cases gained traction across various industries. A temporary dip in 2022 saw investments fall to $3.2 billion, likely due to broader economic challenges and market uncertainties.

However, 2023 witnessed an extraordinary resurgence, with funding skyrocketing to $20.7 billion—a nearly 600% increase compared to 2020. By 2024, funding had already reached $20.2 billion as of October, signaling sustained enthusiasm for AI technologies.

This surge in funding and interest is indicative of the growing role of artificial intelligence in shaping the global economy. Generative AI, in particular, has proven its transformative potential, not only by driving consumer engagement and spending but also by attracting unprecedented levels of investment. While the future of AI appears promising, its rapid adoption also raises questions about governance, ethics, and societal impact, as the technology continues to evolve at an astonishing pace.

Writerbuddy noted in its report, “The five-year trend highlights a dramatic increase in funding, driven by advancements in AI and broader acceptance of its role in shaping the future.”