How Will Gen AI Shape Business in 2025?

Insights by Sonal Sareen, Assistant Vice President, Silverskills

The use of Generative AI (Gen AI) can be divisive – but it cannot be ignored.

2024 was the year that companies truly began to derive value from this now-pervasive technology. As per McKinsey’s latest Global Survey on AI, 65% of participants said that their organizations utilized Gen AI on a regular basis – twice the percentage of McKinsey’s previous survey only ten months prior.

Already we see prominent use cases of Gen AI in business, such as Best Buy’s virtual assistant that provides more personalized support to customers, and Carrefour Taiwan’s AI sommelier service, which helps customers select wines based on their preferences.

This rapid adoption of Gen AI can also be seen in its market size, which is projected to reach $62.72 billion in 2025 and $356.10 billion by 2030.

Having said that, Gen AI has not been universally accepted by businesses. As companies start to see the benefits of the technology, they are also understanding its risks, ranging from data privacy to inaccurate output. Indeed, according to CISCO, 27% of organizations have banned Gen AI applications.

What are the Gen AI trends that will shape businesses in 2025? Below, we’ll cover some of the most prominent ones.

Top Gen AI Trends in 2025

• Hyper-Personalized Marketing: Unlocking Customer Engagement

  Gen AI is revolutionizing marketing by creating highly personalized campaigns and content for customers. By analyzing vast datasets, Gen AI tailors content to match customer preferences, leading to more effective campaigns and higher conversion rates.

  Think individualized learning materials, personalized video recommendations, and adaptive user interfaces. Companies like Spotify and Netflix famously use such personalization. Such practices increase loyalty and engagement, enable brands to more seamlessly integrate into customers’ lives, and improve ROI.

• Intelligent Automation: Boosting Efficiency

  Gen AI is enhancing automation by using neural network architectures and advanced algorithms to manage and automate repetitive tasks, make intelligent decisions, and generate content, thus freeing up human resources to focus on innovation and growth.

  The potential for Gen AI in automation is immense. According to McKinsey’s report, “The economic potential of generative AI”, about 50% of our work activities could be automated between 2030 and 2060. This expedites earlier, pre-Gen-AI estimations by ten years.

  With enhanced automation, corporations can streamline operations by automating routine tasks such as data entry, report generation, and customer support. This both reduces errors and increases efficiency.

• Conversational AI: Transforming Customer Interactions

  Unlike traditional rule-based chatbots, Gen-AI powered models can understand and generate contextually relevant responses.

  These conversational agents can provide real-time, personalized responses to customer inquiries, including complex sentence structures and ambiguous questions. This enhances user experience by enabling more fluid, natural conversations.

  Furthermore, by analyzing vast amounts of data, Gen AI can continuously learn and adapt, improving its performance and accuracy over time.

• Multi-Modal AI: Breaking Down Barriers

  With Gen AI, businesses can offer more intuitive and flexible communication channels, allowing customers to interact in a way that suits them. This leads to a customer experience that is more accessible and inclusive.

  Gen AI is integrating multiple modes of communication, such as text, voice, and images, to create seamless interactions. Multimodal capabilities combine different types of data, like text, images, and audio, to generate responses such as structured content and insights.

  These models can understand and create both text and visuals, making them powerful tools for tasks like describing images or generating creative content.

• Ethical AI and Governance: Ensuring Trust

  While leaders recognize Gen AI’s potential value, they are also concerned about its risks, such as security, bias, damage to reputation, and safety. Mitigating these risks can contribute to organizational success and provide a competitive advantage. Hence, adopting Gen AI responsibly and ethically has become an important consideration for businesses, leading to the creation and adoption of AI governance.

  Gen AI is integrating multiple modes of communication, such as text, voice, and images, to create seamless interactions.

  For instance, in 2024, the EU’s Artificial Intelligence Act was passed into law, and is expected to influence other, similar regulations in other parts of the world. Furthermore, AI-related cross-jurisdictional collaboration and standards have proliferated. Examples include initiatives by the US NIST, OECD, and UNESCO.

  By implementing ethical AI practices and strong data governance frameworks, corporations can build trust with customers and stakeholders. This includes addressing biases, ensuring data privacy, and maintaining transparency in AI-driven decisions.

• Real-Time Applications: Generating Information

  The demand for real-time capabilities is driving generative AI into more dynamic uses. Whether it’s translating languages instantly, creating live event content, or summarizing web information, the ability to generate content quickly is becoming a key feature of the next generation of AI.

The Future of Gen AI

As we march into 2025, Gen AI applications are expected to thrive and transform across industries. While the technology promises significant benefits, its rapid adoption also brings challenges that businesses must address.

The balancing act between harnessing Gen AI’s efficiency and innovation while mitigating risks will define the technology’s future trajectory.

Companies that strategically integrate Gen AI with a focus on robust governance, trust, and transparency will not only gain a competitive edge but also pave the way for sustainable growth.

Do you want to take a deeper dive into Gen AI trends and how they might influence your business? Contact us now to speak with one of our experienced consultants.