Artificial intelligence has been an undeniably high-demand topic in 2024. The year-end provides the perfect opportunity to reflect on our successes and challenges while forecasting the trends that will shape the market in the coming 12 months.
Like many leading technology companies, IBM has been extensively researching artificial intelligence (AI), drawing on the company’s deep market insights and comprehensive scenario analysis. We’ve brokedown IBM’s key predictions and insights for 2025 to help you stay ahead of the curve.
1. AI agents are here, but workforce is not ready
AI is about to change how we work fundamentally. AI agents will start doing more than just assisting, they’ll work proactively and make decisions. But this big shift comes with serious challenges:
- Create clear guidelines for responsible AI use
- Prepare employees to manage and work with AI
- Develop new skills across all levels of the company
The challenge is huge: In 2024, global CEOs estimated that, on average, 35% of their workforce needed to be reskilled.
Only 22% have actual plans to teach AI skills, and less than half know how to integrate AI assistants into daily work.
To bridge this gap, organizations must invest in employee training and development. They should also create strategies to seamlessly integrate AI agents into daily operations while effectively managing the associated risks.
2. Technical debt is increasing
Imagine building a house without a solid foundation. It might seem faster and cheaper in the short term, but it’ll lead to major problems later on. This is essentially what “technical debt” is in the world of software development.
Developers sometimes take shortcuts to speed up the process. While this might seem like a good idea in the short term, it can lead to problems in the future. With the rise of AI, technical debt is becoming a bigger issue.
While 77% of executives say they need to
adopt gen AI quickly, only 25% strongly agree that
their organization’s IT infrastructure can
support scaling AI across the enterprise.
To fully leverage the potential of AI, companies need strong digital foundations. Unfortunately, many companies are struggling to build and maintain these.
To avoid this, companies should focus on long-term thinking, building sustainable systems and embracing flexibility.
3. In the age of AI, location is everything
Many businesses are using AI to grow and reach more customers. But this means they have to think about where they operate. They need to find places with the right people, technology, and laws to use AI safely and effectively.
In 2024, 67% of executives saw AI influencing their company’s location strategy, and this trend is set to continue.
For example, they might choose a country with strong data privacy laws to protect customer information. Or they might pick a place with lots of skilled workers to build and maintain AI systems.
As AI continues to grow, businesses will need to be flexible and strategic in their location choices.
4. AI is “taking” the budget from other IT projects
AI is growing fast, but it’s expensive. And companies are taking money from other tech projects to pay for it.
However, they believe AI will eventually make them more money.
95% of executives say gen AI will be at least partially self-funded by 2026
To make AI pay off, companies are focusing on projects that will bring in money quickly, like using AI to sell more products or improve customer service. They’re also using free AI tools and sharing their work with others to save money.
5. AI is making companies rethink their business
AI is helping companies create new products and services faster than ever before. But to truly succeed, companies need to rethink how they do business. They need to find new ways to make money from these new products and services.
To stay ahead, companies need to:
- Understand their customers better: Use AI to analyze customer data and find new ways to meet their needs.
- Work with other companies: Partner with other businesses to create innovative products and services.
- Put the customer first: Focus on creating personalized experiences that keep customers coming back.