The beginning of a new year always brings forth a flurry of articles on predictions.
As expected, AI heavily influences the predictions and trends, as well it should. According to CBInsights, AI startups are receiving nearly 1 in 3 VC investment dollars. And of the 72 companies that have hit unicorn status (achieving a valuation of $1Billion or greater) in 2024, 32 of them are AI startups.
So it should come as no surprise that AI-related announcements dominate an article like this. And that domination is increasingly driving influence and trends across the business sector—no longer is AI viewed as a subcategory of information technology, related to the purview of the CIO—it now impacts decision making across the C-suite, and is infusing itself into virtually every aspect of the business organization.
1. The Bust Cycle of the Past Several Year is Coming to an End. Maybe.
Most predictions are fairly bullish with respect to AI investments in the coming year, with this example from Canalys showing a projected 8% growth worldwide, and a more robust 10.4% in the US.
In what will be a common theme in this article, growth in spending is going to be driven by AI, with spending shift from spending by hyperscalers to build out basic AI infrastructure to an across-the-board investment to bring AI related applications across the enterprise.
- Virtually every business application is launching (or has launched) embedded AI capabilities, many of which will prompt upgrades to service offerings. A good example is from Zoominfo, adding a copilot to their capabilities.
- Firms that have been stretching their replacement cycles for desktop computing will accelerate a refresh to take advantage of upgrades to AI-capable devices.
- Natural replacement cycles for technology that was quickly deployed during the Covid 19 crisis of 2020-21 is coming up for replacement.
What could keep this rosy outlook from coming true? With recent elections in several of the world’s economic powers (notably the US), there is a certain amount of economic uncertainty and risk. From tariffs to immigration, the tech sector is heavily impacted by decisions that are playing out above the fold on most news organization sites.
2. Generative or Conversational AI applications continue to grow.
The first one is easy—of course generative AI is going have a big impact in 2025.
1. The maturation of AI for visual content (image creation, video and audio:
One of the more interesting According to Forrester Research, early versions of visual content generated by technologies like DALL-E, Firefly, and NVIDIA was often offset by distorted features, unintended likeness to public figures, inaccurate images, or copyright concerns.
AI providers are making investments to mitigate the risk of legal exposure from the inputs that train diffusion models and the outputs of image generators. For instance, Microsoft expanded its indemnity policy for its Copilot products.
2. Generative AI enables the democratization of data.
Generative AI is playing a pivotal role in the democratization of data by making advanced data analysis and insights accessible to a broader audience. Traditionally, data analysis required specialized skills and knowledge, often limiting its use to data scientists and analysts.
However, with the advent of generative AI, complex data processing tasks can now be automated, allowing non-experts to generate meaningful insights from large datasets. This technology enables users to interact with data through natural language queries, making it easier for individuals across various departments to access and understand data without needing extensive technical expertise.
3. AI will provide a customer service renaissance.
Early attempts to deploy online chat in customer support applications resulted in the conclusion that it was nothing more than an online version of the dreaded phone trees (“press 1 if you have this problem, press 2 for that problem, etc...“) . Those early versions still needed someone behind the scenes to connect questions with answers.
AI-powered chatbots and virtual assistants can now handle a wide range of customer inquiries, from answering frequently asked questions to resolving complex issues, all in real-time. By leveraging natural language processing, generative AI can understand and respond to customer queries in a conversational manner, making interactions feel more human-like. This not only improves the customer experience but also allows customer service representatives to focus on more complex tasks that require a human touch.
3. The coming conflict between business users and IT departments with respect to AI Security.
Citing Forrester again, in the absence of a formal AI strategy, 60% of workers will bring their own AI to business applications, highlighting the continuing internal quandary CIOs and CISOs are trying gain control over.
We’ve seen enough cautionary reports of the loss of proprietary data accidentally released to the public internet through improper AI training that most firms are aware of the threat. However, we face the challenge that the use cases for AI are advancing faster than IT departments can develop effective security and governance guidelines.
Companies that delay their use of AI for business purposes while they formalize their AI governance polices will increasing find themselves at a competitive disadvantage.
The demand from users is resulting in a refresh of the shadow AI issues that plagued IT departments as SaaS applications first came to market. This year:
- Companies will get serious about setting up some form of formal AI Governance, if they haven’t done so already.
- Security professional will need to stay vigilant to the the continuing escalation of technology used by bad actors and, and incorporate corresponding responses from security professionals
- There will be a shift of mindset moving from providing security for Security for AI to using AI to improve security posture.
- Emerging laws, regulations and compliance requirements are going to require constant monitoring and needs to react quickly.
Vendors will incorporate security innovations into their technology. As an example, Microsoft made a series of announcements relative to the topic are the recent Ignite conference in late 2024. As AI continues to transform how organizations operate, security remains paramount. Microsoft’s latest advancements address these challenges head-on. The company has achieved this by integrating AI into its security ecosystem.
- AI in Security: Copilot enhances risk detection. Real-time insights prevent data misuse and protect sensitive assets.
- Purview Integration: Legal and e-discovery capabilities ensure businesses remain compliant. Advanced compliance tools also provide transparency and control over AI interactions,
Organizations in regulated industries can confidently adopt these tools. Industries like healthcare and finance benefit from robust security and AI’s potential.
4. The Rise of Agentic AI
Agentic AI is a form of artificial intelligence that operates autonomously to achieve specific goals or tasks without constant human intervention. According to Gartner, its one of their top technology trends for 2025.
Unlike traditional AI, which relies heavily on human input, agentic AI can make decisions and act in real-time. It uses sophisticated reasoning and iterative planning to solve complex, multi-step problems, making it ideal for applications in industries like healthcare, finance, and marketing
While agentic AI is gaining popularity as companies push beyond basic generative and conversational AI tasks into business-critical applications, the difficulty of creating their own models, advanced RAG stacks, advanced data architectures, and sourcing data for training.
According to Forrester: Three out of four firms that build aspirational agentic architectures on their own will fail.
AI agentic architectures were a top emerging technology for 2024, but they’re not ready yet. As a result, 75% of enterprises that attempt to build these agents themselves next year will fail and will turn to consultancies to build custom agent setups or will use agents embedded in their existing vendor software ecosystems. Savvy firms will grasp current limitations and lean on their vendor and systems integrator partners to build agents at the cutting edge of this technology.
5. The End of Life of Windows 10 / Migration to Window 11
Understanding the significance of Windows 10’s end-of-life (EOL) is crucial for businesses. Microsoft has stated that the EOL date is October 14, 2025. Subsequently, Microsoft will cease issuing critical security updates, exposing businesses to potential threats. Organizations must move toward the new platform before the final updates are released to ensure devices are supported and secure
- Risks and Challenges: Once Windows 10 reaches EOL, security patches will no longer be included in the standard deployment. There will be no bug fixes or optimizations, which can crater productivity. The transition to Windows 11 ensures that businesses can continue to receive crucial security updates, protecting their data and systems from potential cyber threats
- Upgrade to Windows 11 Is the Best Responses: The best way to protect your data, devices, and identity after October 2025 is to upgrade to Windows 11. If you really want to continue using Windows 10, ensure that you have a robust and up-to-date antivirus application to give you additional protection
- A fresh hardware refresh cycle will begin. Many organization were forced into an unplanned refresh cycle in 2020 when employees were forced to work from home during the Covid 19 crisis. Those devices are now coming up on the end of their expected life, and the replacements will likely be with AI-enabled hardware running Windows 11.
Conclusion
In conclusion, the trends and predictions for 2025 highlight the significant impact of AI across various business functions.
AI-powered technologies, such as generative AI, conversational AI, and agentic AI, are set to transform how businesses operate, interact with technology, and make decisions. The mainstream adoption of these AI applications will drive efficiency, enhance customer experiences, and enable more personalized and data-driven strategies.
Security remains a paramount concern, with AI-powered attacks, IoT security, and quantum security posing significant challenges. Companies must invest in robust security measures and AI governance to protect their data and systems from evolving threats.
The end-of-life for Windows 10 and the transition to Windows 11 will require businesses to upgrade their IT infrastructure to ensure continued support and security. This transition presents an opportunity for organizations to adopt AI-enabled hardware and leverage the latest advancements in technology.
Overall, the integration of AI into various business functions, including marketing, HR, finance, and operations, will drive innovation, improve decision-making, and create new opportunities for growth and success in 2025 and beyond.
