As we enter 2025, artificial intelligence (AI) is transitioning from experimental research to real-world applications across industries. Below is a deeper dive into the critical trends shaping AI’s future, supported by relevant statistics and consumer-focused insights.
1. Agentic AI: AI Transitioning from Talking to Doing
Agentic AI represents a transformative leap, enabling machines to act independently, make decisions, and collaborate without constant human input. Gartner estimates that by 2028, 33% of enterprise software applications are expected to include agentic AI, up from less than 1% in 2024. This will allow 15% of daily work decisions to be made autonomously.
Companies such as Amazon are piloting AI agents to take over routine coding and maintenance tasks, freeing up engineers to focus on more strategic work. On the consumer side, agentic AI is evolving beyond simple voice commands. Emerging personal assistants now have the potential to manage household tasks such as scheduling appointments, ordering groceries.
The rise of autonomous systems raises accountability concerns. Companies must establish robust governance frameworks and invest in reskilling employees to collaborate effectively with such systems.
2. Edge AI and tiny models: Smarter devices
Edge AI is rapidly shifting artificial intelligence from centralised cloud data centers to the very devices you use every day. In 2025, smaller, highly optimised models often called Small or Super Tiny Language Models (SLMs/STLMs) will empower your smartphone, smartwatch, and even home appliances to process data locally. This means instant, real-time decisions without waiting on network responses.
By 2025, 50% of enterprises are predicted to adopt edge computing, up from 20% in 2024. We already see adoption of this in Apple Intelligence to enable smoother user interactions with less latency than cloud-based alternatives.
With data processed locally rather than transmitted to remote servers, your personal information be it from photos, messages, or health data remains secure on your device. This on-device approach is a cornerstone of Apple Intelligence, which is designed to minimise data exposure.
3. Reasoning Models with human like problem solving
Reasoning models simulate human cognition to solve complex problems. These systems are pivotal for strategic decision-making across industries. In 2025, these models will be able to tackle more sophisticated tasks, from strategic decision-making to complex problem-solving.
OpenAI’s “o3,” which recently achieved an impressive score on the ARC-AGI benchmark, is an early example of how reasoning models are pushing us closer to AGI. These advancements signal that reasoning models can handle far more sophisticated tasks, from strategic decision-making to complex problem-solving, and can potentially reshape entire industries.
Reasoning models will enable hyper-personalised experiences across retail, healthcare, and finance, with AI systems anticipating needs (e.g., tailored product recommendations, adaptive health plans) and resolving complex queries in real time. For businesses, this means a future where AI can assist with high-level decision-making, analyse complex data, and support innovation.
However, ethical concerns around data privacy and algorithmic bias require transparent AI governance to maintain trust.
4. China challenging the US AI dominance
The emergence of DeepSeek, a Chinese artificial intelligence startup, has sent shockwaves through the global AI landscape, challenging the long-held dominance of U.S. companies like OpenAI and Google.
Training DeepSeek’s R1 model, which performs better than OpenAI’s o1 model reportedly cost just $5.6 million, compared to over $100 million for o1. The release of DeepSeek-R1 caused a $590 billion loss in Nvidia’s market valuation and wiped $1 trillion off the value of U.S. tech stocks in a single day.
This year we will see many use cases leveraging DeepSeek models over models from OpenAI/ Google. We would likely also see more models come from China. This will also spark geo-political discussions around import/ export restrictions for AI related hardware and software.
5. How AGI-Driven Robots are redefining the workforce and business operation
Artificial General Intelligence (AGI)-driven robots are capable of adapting across diverse tasks. By 2025, robots are expected to quadruple globally, potentially displacing jobs but also creating new opportunities.
AGI-powered robots like Agility Robotics’ Digit now autonomously transfer items between mobile robots and conveyors in warehouses, addressing labor shortages while handling 35-pound payloads. This year we would also see robots in households, for example Agibot a robots that fold laundry, make beds, and navigate homes autonomously using AI learning.
The rise of AGI-driven robots does bring concerns about job losses. In sectors such as logistics and healthcare, where preliminary studies suggest up to 30% of routine tasks could be automated, businesses must proactively invest in retraining programs. Research from leading AI institutes projects that strategic upskilling could mitigate job displacement by as much as 40% over the next five years
The future of AI in 2025 is bright and full of promise. We will not only achieve unparalleled efficiency and innovation but also create more human-centric experiences. Companies that invest in transparent, ethical AI practices and proactive workforce retraining will be best positioned to harness these advancements. Together, these trends signal a new era where technology and human ingenuity work hand in hand—driving smarter decision-making, safer environments, and a more connected, prosperous future for all.
