Advancements in semiconductor technology are transforming AI by enabling decentralized, efficient edge computing, reducing reliance on cloud infrastructure. Specialized hardware and open-weight models enhance automation, personalization, and real-time decision-making across industries. This shift disrupts traditional business models in retail, finance, and healthcare while introducing challenges related to ethics, regulatory compliance, and workforce adaptation. Companies like Synaptics, Lattice, and Axelera are driving innovation in AI hardware, while software platforms like MIPS and Perforce facilitate AI integration. As AI continues to evolve, addressing governance, security, and reskilling needs will be crucial for responsible and sustainable deployment.