The cost for a given level of AI performance halves every 3.5 months—a rate 10 times faster than Moore's Law. This exponential improvement means entrepreneurs should pursue ideas that seem financially or computationally unfeasible today, as they will likely become practical within 12-24 months.

OpenAI moved from Level 1 (Chatbots) to the cusp of Level 4 (Innovators) in under two years, a timeline much shorter than publicly anticipated. This suggests Level 5 (AI-run Organizations) is approaching faster than many leaders realize.

METR's research reveals a consistent, exponential trend in AI capabilities over the last five years. When measured by the length of tasks an AI can complete (based on human completion time), this 'time horizon' has been doubling approximately every seven months, providing a single, robust metric for tracking progress.

Conservative GDP growth forecasts for AI often fail because they analyze its capabilities at a single point in time. The most critical factor is AI's exponential improvement trajectory, which makes analyses based on year-old capabilities quickly obsolete and misleadingly pessimistic.

A key metric for AI progress is the size of a task (measured in human-hours) it can complete. This metric is currently doubling every four to seven months. At this exponential rate, an AI that handles a two-hour task today will be able to manage a two-week project autonomously within two years.

Leading LLMs can now replicate a two-hour human software engineering task with 50% accuracy. This capability is doubling every seven months, signaling an urgent need for organizations to adapt their data infrastructure, security, and governance to leverage this exponential growth.

AI's ability to perform software engineering tasks that would take a human hours is doubling every 4-6 months. This rapid, exponential progress suggests a near-term future where AI can automate its own research and development. This self-improvement loop is the critical inflection point that could trigger a massive, unpredictable leap in AI capabilities.

Third-party tracker METR observed that model complexity was doubling every seven months. However, a recent proprietary model shattered this trend, demonstrating nearly double the expected capability for independent operation (15 hours vs. an expected 8). This signals that AI advancement is accelerating unpredictably, outpacing prior scaling laws.

While the long-term trend for AI capability shows a seven-month doubling time, data since 2024 suggests an acceleration to a four-month doubling time. This faster pace has been a much better predictor of recent model performance, indicating a potential shift to a super-exponential trajectory.