The artificial intelligence (AI) landscape is shifting at a dizzying rate. What was once science fiction is now deeply woven into our everyday lives. AI is changing how we communicate, how we work, and even how we perceive the world around us. Along with remarkable technological advancements, the industry also witnessed a rise in regulatory efforts this year.
“AI is already making the impossible feel possible, and over the past year we’ve seen significant numbers of people and organizations moving from AI experimentation to more meaningful adoption,” says Chris Young, executive vice president of business development, strategy, and ventures at Microsoft. “This is the start of a full-scale transformation of how this technology will change every part of our lives.”
As we step into 2025, there is little doubt that AI will continue to be the most talked-about technology. However, as the influence of AI grows, so does the urgency of addressing security risks and ethical issues surrounding the impact of the technology on humans and society.
In the coming year, we may begin to confront some of these critical issues. At the same time, we can expect even more groundbreaking innovations that would have seemed unimaginable just a few years ago. Organizations that have invested in GenAI would be eager to see a return on their investment. Let’s explore the key AI trends and topics that will take center stage in 2025 and beyond.
Rise of Agentic AI
Agentic AI, which enables AI systems to act autonomously with minimal human supervision, is expected to be a game-changer in the coming years. It's more than just a buzzword. According to a Gartner report, 33% of enterprise software applications will include agentic AI by 2028. This is up from just 1% in 2024. Gartner also expects Agentic AI to make 15% of work decisions autonomously by 2028.
What makes Agentic AI so effective is its “chaining” capabilities, allowing AI systems to autonomously perform complex tasks. Unlike traditional models, agentic AI can initiate actions, adapt to new situations, and make decisions based on context. This ability to "link" tasks and execute them without human input enables more efficient automation.
According to Emergen Research, the agentic AI market is expected to be valued at $30.89 billion in 2024 and has an expected compound annual growth rate (CAGR) of 31.68%. From tech giants to startups, companies are increasingly investing in agentic AI, and the market size to accelerate in 2025.
Growing Focus on GenAI ROI
Have GenAI initiatives delivered on their promise? Has the investment been worth it? In 2025, we’re likely to have a clearer picture. With projects from 2023 and 2024 now maturing, businesses will focus heavily on evaluating the ROI of their AI investments. As these technologies evolve, organizations will gain a more accurate understanding of their true value.
Rather than chasing innovation for innovation’s sake, companies will increasingly demand proof that AI, particularly GenAI, is delivering tangible results. The emphasis will continue to shift from experimentation to real-world applications, where AI is expected to contribute to bottom-line growth.
(Alexander Supertramp/Shutterstock)
While GenAI is still struggling with its data problem, businesses are starting to reap the rewards for their investment in the technology. According to a recent Google report, 74% of organizations are currently seeing ROI from GenAI investments.
The report reveals that 86% of companies using GenAI in production report a 6% or more increase in annual revenue, and 84% successfully move GenAI use cases into production within six months.
Enhanced Resource Efficiency
As AI continues to expand, so too does its demand for computational power and energy. AI chips account for 1.5% of the electricity use over the next five years. However, companies are working toward using innovative solutions to make AI more resource-efficient.
In 2025, we can expect a stronger focus on optimizing AI infrastructure, with a shift toward more sustainable and energy-efficient technologies.
Microsoft, AMD, Intel, and NVIDIA are investing heavily in developing more energy-efficient hardware and cooling solutions to support AI. This includes custom AI chips designed specifically for AI. In addition, liquid cooling systems are gaining traction as a solution to making data centers more efficient and reducing energy usage.
AI is also enabling more sustainable practices in other sectors. In agriculture, AI is helping reduce water and pesticide use, while in cities, smart traffic management systems are cutting emissions by optimizing traffic flow.
In the coming year, we may see the emerging role of nuclear energy in meeting the vast demands of AI. Google has already signed an agreement with Kariso Power to use small nuclear reactors to power its AI data centers.
Accelerated Scientific Breakthroughs
AI got its scientific recognition through the 2024 Nobel Prize awards, which admittedly sparked a debate in the community. However, its most profound impact has been in accelerating scientific breakthroughs.
From leveraging AI for precision hurricane forecasting to uncovering breakthroughs in molecular dynamics simulations, AI has emerged as a powerful tool driving innovation across diverse scientific fields.
The White House also held a summit about the potential of AI applications in life sciences. This highlights the growing interest in how AI can transform areas like drug discovery and personalized medicine.
So what makes AI so effective in accelerating scientific breakthroughs? Quite simply, AI can do what traditional scientific methods often cannot. AI can process vast amounts of data, deriving insights that would not be practical, or even possible, with traditional methods.
Not only is there a growing awareness of the power of AI in enabling scientific research, but many of the machine learning (ML) algorithms used for scientific breakthroughs are also open-sourced. This openness allows the scientific community to build on past research and collaborate more effectively, accelerating the pace of discovery.
