Is AI the New Year Trend in Technology? Experts Weigh In

AI continues to dominate tech trends as we head into 2025. Analysts predict cautious investments in GenAI but positive outcomes from AI applications in customer service, banking, and IT services.

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Sumit Kumar
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Artificial intelligence

By A Staff Reporter :

Artificial Intelligence (AI) is set to remain at the forefront of technological trends in 2025. Biswajit Mohapatra, Principal Analyst at Forrester Research, predicts that while large enterprises may tread cautiously with high-stakes GenAI projects, interest in smaller, low-risk AI initiatives will grow significantly.

 

AI Investments in 2025 :

Experts forecast that most organizations will see positive returns on their AI investments by the end of 2025. Industries are likely to focus on implementing AI in areas like customer service portals and chatbots, which offer tangible benefits with minimal risk.

The IT services sector will also see a major shift, with 10 percent of service providers expected to integrate AI into 30 percent of their offerings. This transformation is likely to drive organizations toward a fixed-cost model, improving efficiency and predictability.

 

Sector-Specific Trends :

Banking: AI-powered money management tools will enhance personalized financial services, making banking more efficient and customer-centric.

Insurance: Despite challenges, AI adoption in the insurance sector is poised to increase through strategic partnerships.

 

 

Cautious Optimism with GenAI :

While the hype around GenAI continues, large-scale investments in this area remain limited as enterprises prioritize risk mitigation. However, smaller AI-driven projects are likely to deliver measurable successes, driving broader adoption.

As we enter 2025, AI stands tall as a transformative force, shaping the future of industries with innovative and practical applications. Whether through customer service solutions or banking innovations, AI is undoubtedly the tech trend to watch in the new year.