NEW YORK — The evolution of artificial intelligence (AI) is accelerating, and as businesses gear up for 2025, the expectations surrounding this game-changing technology are bold. With companies like PwC leading the charge, the role of AI extends beyond traditional tech initiatives and is deeply integrated within business models.
At the helm of this transformation is Dan Priest, who recently stepped up as Chief AI Officer at PwC, one of the world’s largest consulting firms. He explained, "We launched the role in early July on the heels of us doing an AI impact analysis and strategy for the firm." His goal is clear: to responsibly tap the full potential of AI to best serve clients across various sectors.
Priest notes, "AI is showing up... for the majority of our clients these days," indicating how widespread AI adoption has become. According to a survey conducted by PwC among Fortune 1000 companies, nearly half confirmed AI is fully embedded in their workflows, enhancing operations significantly. About one-third reported having integrated it directly within products and services.
What’s driving such rapid evolution? Competitive pressure. Priest emphasized, "To be competitive, companies can't just predict what consumers want anymore," which is indicative of the shift businesses are experiencing. At the forefront is generative AI, which allows for products and services to be personalized directly to consumers’ preferences.
Looking toward 2025, various AI systems, particularly AI agents—capable of making decisions and performing tasks without human oversight—are predicted to revolutionize workflows. ChatGPT highlights this opportunity, stating, "Workflows fundamentally changed with AI agents." Deloitte forecasts 25% of companies currently using AI to deploy such agents by year’s end, potentially increasing to 50% by 2027.
Priest shared insights on the importance of determining maturity levels for AI. Citing examples from the cruise industry, he explained how generative AI forms personalization engines, allowing cruise lines to tailor their offerings based on real-time consumer preferences. This hyper-personalization marks yet another phase of AI adoption where organizations must innovate to remain relevant.
With AI penetrating various sectors, the notion of narrow AI—where AI systems become specialized for industry-specific tasks—gains traction. Catherine Breslin, founder of AI consulting firm Kingfisher Labs, noted, "It's not necessarily hard to make it work in a specific domain.” She underscored the adaptation required for different fields, like law and medicine, as they begin to embrace AI’s unique capabilities.
For example, Breslin anticipates AI enhancing workflow efficiency within healthcare settings, aiding not only administrative tasks but also patient care processes. She stated, "What are the other places in medicine [where] it really would be useful?" prompting professionals to explore AI integration for boosting service delivery.
AI-enhanced devices are also on the rise. Reports suggest by the close of 2025, roughly 30% of devices may incorporate generative AI functionalities, with the number climbing to 50% among laptops. AI technology’s adaptability positions it for seamless operation, particularly on smartphones where connectivity may be unreliable.
Breslin remarked on the infrastructure needed, emphasizing, "If you look at some of the models... you need really hefty computing power to work with and not everybody has" this capacity. The push toward smaller, efficient models like Microsoft's Phi-4 signifies how AI can evolve within hardware constraints.
Perhaps one of the most exciting advancements looms with multimodal AI systems, which amalgamate text, images, audio, and video, providing richer user experiences and insights. Google’s 2025 predictions for multimodal AI reveal promising applications from analyzing market commentary to leveraging data for predictive maintenance on factory floors.
Despite the positive outlook, there linger concerns about regulatory hurdles impacting AI development. Companies like Meta have hesitated releasing newer models due to what they call regulatory unpredictability, which might stifle innovation across the EU.
Priest encapsulated the urgency of the moment, reminding executives, “Your AI strategy will either put you ahead or make it hard to ever catch up.” Reflecting on lessons from the internet boom, the early birds of AI today could position themselves for long-term success.
With continuing advancements anticipated, the AI horizon for 2025 is not just about technology; it’s about enhanced strategic frameworks, operational efficiencies, and the holistic integration of AI across industries, setting the stage for tomorrow's businesses.