According to journalist Mark Sullivan, “2024 saw a real acceleration in both the development and the application of [artificial intelligence]. Expectations are high that AI will move beyond just generating text and images and morph into agents that can complete complex tasks on behalf of users. But that’s just one of many directions in which AI might move in 2025.”[1] Tracking various directions in which AI might head is critical for today’s business leaders. As freelance writer Taryn Plumb explains, “In the enterprise of the future, human workers are expected to work closely alongside sophisticated teams of AI agents.”[2] She adds, “According to McKinsey, generative AI and other technologies have the potential to automate 60 to 70% of employees’ work. And, already, an estimated one-third of American workers are using AI in the workplace — oftentimes unbeknownst to their employers.” Let’s review where experts believe AI is headed this year and beyond.
Artificial Intelligence Trends
Trend 1. Rise of Agentic Artificial Intelligence. It is no coincidence that both Sullivan and Plumb mentioned AI agents playing a leading role in the future. Journalist Jackie Snow writes, “Tech leaders envision armies of AI agents — autonomous digital workers that can actually get things done, not just chat.”[3] Technology journalist Abhishek Baxi observes, “Unlike current AI systems that are primarily reactive, these agents will be able to navigate complex environments, interact with other AI systems, and adapt to changing circumstances. Imagine an AI that can write a report, research the topic, gather data, and even reach out to experts for input, all without explicit instructions.”[4] Gartner lists agentic AI as its top 2025 technology trend. Gene Alvarez, a Distinguished Vice President Analyst at Gartner, explains, “Autonomous AI can plan and take action to achieve goals set by the user.”[5] According to Alvarez, the business benefits of agentic AI include creating “a virtual workforce of agents to assist, offload and augment the work of humans or traditional applications.” He cautions, however, “[Agentic AI] requires robust guardrails to ensure alignment with providers’ and users’ intentions.”
Trend 2. Small Becomes the New Big. According to Joe Regensburger, Vice President of research at Immuta, “Small Language Models (SLMs) will take off as a means of solving more targeted problems with greater cost efficiency.”[6] He adds, “We need to be more discriminating in what problems we ask [Large Language Models (LLMs)] to solve. Many natural language processing (NLP) applications can be solved using more cost-efficient models such as GPT-4o-mini, Gemini-flash, etc. Using more cost-efficient models means lowering the cost-covering point for the use of LLM services.” I agree with Regensburger. As I noted elsewhere, “While smaller, more efficient models reduce computing barriers, deploying AI in logistics and retail sectors involves more than cost savings. … Language models still require extensive training, high-quality data, and domain expertise to tackle complex supply chain management and business analytics operational challenges.”[7]
Trend 3. Data Becomes More Valuable. Generative AI has garnered a lion’s share of headlines over the past two years. However, making generative AI work effectively requires huge amounts of data. Lenley Hensarling, a freelance technical advisor, explains, “Generative AI depends on a wide range of structured, unstructured, internal, and external data. Its potential relies on a strong data ecosystem that supports training, fine-tuning, and Retrieval-Augmented Generation (RAG). For industry-specific models, organizations must retain large volumes of data over time. As the world changes, relevant data becomes apparent only in hindsight, revealing inefficiencies and opportunities. By retaining historical data and integrating it with real-time insights, businesses can turn AI from an experimental tool into a strategic asset, driving tangible value across the organization.”[8] As data has become more valuable, enterprises possessing large archives of data used to train generative AI systems have sought compensation for the use of that data and are using the judicial system to secure their claims.[9]
Trend 4. Data Becomes More Useable. Andi Gutmans, Vice President and General Manager of Databases at Google, predicts, “2025 is the year where dark data lights up. The majority of today’s data sits in unstructured formats such as documents, images, videos, audio, and more. AI and improved data systems will enable businesses to easily process and analyze all of this unstructured data in ways that will completely transform their ability to reason about and leverage their enterprise-wide data.”[10]
Trend 5. AI Converges with Other Technologies. Exciting things always happen when technologies converge. Amy Webb, CEO of the Future Today Institute and a professor of strategic foresight at New York University’s Stern School of Business, believes several technologies, including AI, are about to converge and business leaders need to pay attention. She explains, “AI is merely one facet of a sweeping technological change underway, and companies that fail to recognize the importance of other converging technologies risk being left behind. Two other technologies — advanced sensors and biotechnology — are less visible, though no less important, and have been quietly advancing.”[11] She adds, “Soon, the convergence of these three technologies is going to underpin a new reality that will shape the future decisions of every leader across industries. I call this new reality ‘living intelligence’: systems that can sense, learn, adapt, and evolve, made possible through artificial intelligence, advanced sensors and biotechnology. Living intelligence will drive an exponential cycle of innovation, disrupting industries, and creating entirely new markets. Leaders who focus solely on AI without understanding its intersections with these two other technologies risk missing a wave of disruption already forming.” Daniela Rus, director of the Computer Science and Artificial Intelligence lab at MIT, sees this same kind of convergence happening in the field of automation. She predicts, “This is the year when AI will finally make the leap from the digital world to the real world we inhabit. Expanding AI beyond its digital boundary demands reworking how machines think, fusing the digital intelligence of AI with the mechanical prowess of robotics. This is what I call ‘physical intelligence’, a new form of intelligent machine that can understand dynamic environments, cope with unpredictability, and make decisions in real time.”[12]
Trend 6. Quantum Computing Enters the AI Picture. Investment journalist Adam Spatacco predicts, “Quantum computing will be the biggest theme in artificial intelligence in 2025.”[13] However, he explains that being a “theme” and becoming a “real thing” are two very different conditions. One expert who believes quantum computing and AI will become a real thing is Rajeeb Hazra, President and CEO, Quantinuum. He predicts, “Looking ahead, quantum computing will begin to play a critical role in AI’s evolution, with early evidence of its impact likely emerging by 2025. One clear advancement will be the ability of quantum-AI systems to generate and analyze massive high-fidelity data sets, unlocking breakthroughs in fields like material design, climate modeling, and personalized medicine, where current data limitations constrain progress. This milestone will demonstrate the transformative potential of AI and quantum working together.”[14]
Concluding Thoughts
Although the future looks bright for companies that master the use of AI, reaching that level of maturity remains a challenge. Craig Martell, Chief Technology Officer at Cohesity, reminds us, “It is crucial to remember that AI is not one monolithic entity but a set of tools applied in varied, case-by-case scenarios. Moving forward, investment and effort should be placed in better understanding and solving particular use cases — not in trying to build overarching, monolithic solutions to all problems (or AGI).”[15] Business journalist Rachana Shanbhogue, writes, “[Artificial Intelligence] may be the biggest gamble in business history. … And yet most companies are still not sure what the technology can or cannot do, or how best to use it. … The AI race will take many forms in 2025. Yet the point at which investors lose their nerve is often when new technologies quietly start gaining traction. Will the bubble burst, or will the technology start to deliver? The answer in 2025 may be: a bit of both.”[16] Understanding your business — and its possibilities when complemented by AI — will nevertheless set you on a course for success in a new, AI-dominated business landscape.
Footnotes
[1] Mark Sullivan, “25 experts predict how AI will change business and life in 2025,” Fast Company, 2 January 2025.
[2] Taryn Plumb, “2025: The year ‘invisible’ AI agents will integrate into enterprise hierarchies,” Venture Beat, 14 November 2024.
[3] Jackie Snow, “2025 could be the year AI grows up,” Quartz, 9 December 2024.
[4] Abhishek Baxi, “These Are the 4 AI Trends I’m Most Hyped for in 2025,” Make Use Of, 2 January 2025.
[5] Gene Alvarez, “Gartner Top 10 Strategic Technology Trends for 2025,” Gartner, 21 October 2024.
[6] Stephanie Simone and Sydney Blanchard, “10 Predictions for AI Development in 2025,” Database Trends and Applications, 20 December 2024.
[7] Staff, “Tiny AI Models Could Give Retailers Big Cost Edge,” PYMNTS, 27 October 2024.
[8] Simone and Blanchard, op. cit.
[9] See Stephen DeAngelis, “Will Lawsuits Limit the Value of Generative AI?” Enterra Insights, 12 March 2024.
[10] Sullivan, op. cit.
[11] Amy Webb, “Why “Living Intelligence” Is the Next Big Thing,” Harvard Business Review, 6 January 2025.
[12] Daniela Rus, “To Interact With the Real World, AI Will Gain Physical Intelligence,” Wired, 6 January 2025.
[13] Adam Spatacco, “Prediction: Quantum Computing Will Be the Biggest Theme in Artificial Intelligence (AI) in 2025. But Does That Mean You Should Invest in It?” Motley Fool, 4 January 2025.
[14] Sullivan, op. cit.
[15] Craig Martell, “2025 predictions — how AI is likely to play out in the new year,” IT in the Supply Chain, 27 November 2024.
[16] Rachana Shanbhogue, “Will the bubble burst for AI in 2025, or will it start to deliver?” The Economist, 18 November 2024.
