Home Insights Ebooks Top five AI trends for 2025

Much like the World Wide Web before it, artificial intelligence stands as one of the most transformative disruptors of our time, opening a new universe in the tech space. As businesses race to capitalize on its promise, the shift from ‘what if’ to ‘what’s next’ has been swift, and this momentum shows no signs of slowing down. In the past year alone, generative AI adoption surged from 55% to 75% among business leaders, while agentic AI has been identified by 70% of executives as one of the top three most impactful technologies for 2025.

However, this rapid adoption has brought organizations to a critical crossroads, where AI innovation meets governance. As fit-for-purpose solutions emerge, so do execution gaps—from data readiness and AI leadership to skills development and regulatory compliance.

While 49% of U.S. AI decision-makers expect ROI within 1–3 years, and 44% anticipate it within 3–5 years, impatience and poor execution could lead to premature investment rollbacks—a costly mistake in the long run.

Download our latest e-book to explore the top 5 AI trends for 2025 and discover how business leaders and tech executives can bridge the gap between AI ambition and execution to unlock AI’s full potential while avoiding common pitfalls.

Discover in-depth insights on tackling data challenges, boosting workplace productivity, the comeback of predictive AI, the rise of agentic AI, and why a product-led strategy is the key to driving real business impact.

 

Trend #1: Structured/unstructured data will be the fuel and the bottleneck for AI

Until now, data has largely been understood as “information humans need to make a decision.” For AI to take over some—or all—of that decision-making, this information must be contextually distilled into training data. This is why, in 2025, poor data quality will lead to 30% of generative AI projects failing post-proof of concept.

Even though large language models (LLMs) are pre-trained on vast amounts of data, they often fall short in specialized, domain-specific use cases unless fine-tuned with targeted business data. To ensure data readiness, businesses must address these critical questions:

  • Is your data gatherable? Can it be systematically collected and organized?
  • Is it reliable? Is it accurate, consistent, and trustworthy?
  • Is it indexable? Can it be efficiently searched and accessed?
  • Is it durable? Is it properly maintained for long-term usability?

Legacy systems weren’t designed for interoperability, resulting in siloed structured and unstructured data that complicates AI integration. Each system stores data in unique formats, requiring extensive cleaning and transformation for consistency and compatibility. Beyond data quality, AI regulations like the EU AI Act (2025) are driving stricter AI and data governance.

Recognizing these challenges, organizations are shifting focus from model optimization to data readiness.

AI itself plays a pivotal role in preparing quality data by standardizing, enriching, and correcting information to ensure consistent quality. AI-powered data analysis unlocks siloed or unstructured data by reorganizing it into accessible formats, enabling seamless integration and usability across platforms. Once data readiness is achieved, retrieval-augmented generation enhances AI’s ability to access domain-specific data in real-time, reducing hallucinations and improving decision-making. Yieldmo, an advertising technology company, has successfully deployed an innovative machine learning platform built on a highly efficient data infrastructure, enabling it to match users, publishers, and advertisers while optimizing campaign delivery and performance.

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Trend #2: Generative AI will transform employee experience to multiply operational efficiency

Generative AI is redefining how work gets done, with 25% of tech executives planning to leverage AI to transform the employee experience (EX). In 2025, AI is targeting developer productivity, knowledge management, intelligent document processing, marketing analytics, and various other back-office functions and driving efficiency at scale.

However, generative AI won’t boost labor productivity unless organizations rethink workflows and focus on outcomes rather than simply mirroring human-led processes. Companies that deeply integrate AI into workflows have a 33% higher likelihood of achieving annual revenue increases of 10% or more compared to their peers. The key is to align AI initiatives with long-term strategic goals, emphasize training and change management, and ensure deep integration across workflows to achieve faster and greater ROI.

Here are some key EX use cases to consider:

  • AI-powered software development: AI tools accelerate software development, testing, and migration, boosting developer productivity by 55%.
  • Knowledge assistants: Conversational knowledge assistants assist customer service agents in helping customers in real-time and intelligent document processing systems simplify information retrieval, automate compliance, and enhance internal collaboration, ending workplace silos.
  • Smart workplaces: Vision Language Models—multimodal AI models that can learn from images and text—analyze CCTV footage to optimize workplace layouts, improve safety, and track operational efficiency.
  • Marketing analytics & next-best experience: AI-powered virtual personas predict marketing campaign effectiveness, enhance customer engagement, and drive data-driven decision-making.

AI-powered tools offer employers a chance to leapfrog and change how work is accomplished by combining the power of humans and machines. Grid Dynamics’ Next Best Action solution for a Fortune 500 pharma company improves marketing communication with healthcare practitioners—boosting email engagement by 50%, reducing churn by 20%, and cutting inefficient interactions by 40%.

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Trend #3: Businesses holding out for generative AI success will swing back to predictive AI

As generative AI struggles to meet immediate business expectations, organizations will shift focus back to predictive AI—a tried and true approach delivering tangible ROI. This shift is not necessarily a “rolling back” of generative AI but rather a natural progression as the hype cycle subsides, and organizations recognize that generative AI is not a silver bullet for complex computational problems where accuracy and speed are critical.

Industries like retail, manufacturing, and CPG rely on predictive AI to process vast datasets—SKU x channel x location combinations—while adjusting dynamically to external market fluctuations.

Predictive AI helps with demand sensing and forecasting by processing vast amounts of supply chain and market data, enabling:

  • Accurate procurement decisions to optimize sourcing and reduce waste
  • Optimized transportation planning for efficient logistics and cost savings
  • Improved inventory management to prevent overstocking or shortages
  • Data-driven pricing and promotion strategies to adapt to market trends, maximize customer engagement, and boost sales

The integration of edge computing further enhances predictive AI’s impact by reducing latency and enabling real-time decision-making, such as detecting defects in manufacturing lines or adjusting inventory strategies on the fly.

By combining insights into “what will happen” (predictive AI) with “what can be done differently” (generative AI), organizations can adapt and innovate with fewer surprises and greater efficiency. Predictive AI models flag potential risks, while generative AI creates solutions—whether optimizing delivery routes, adjusting inventory strategies, or personalizing promotions based on demand forecasts.

Grid Dynamics’ predictive AI-driven anomaly detection for a global industrial tech client delivered 650% ROI with a new $250M revenue opportunity and an 8x increase in analyst productivity through automated variance analysis.

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Trend #4: Agentic AI will solve complex tasks that require reasoning, planning, and learning from experience

By 2028, at least 15% of day-to-day work decisions will be made autonomously by agentic AI, up from 0% in 2024.

While today’s generative AI responds to user prompts, the next evolution lies in autonomous agents capable of perceiving, processing, and acting on information to achieve specific goals.

Unlike generative AI, which cannot directly interact with external tools or continuously collect real-time data, agentic AI can search the web, call APIs, and query databases. These agents fetch real-time information, track IoT data, monitor trends, and manage tasks like data logging and analysis. By providing LLMs with fresh, contextual inputs, they enhance decision-making and enable more intelligent automation.

How agentic AI solves problems: The four-step process

  • Perceive: Collects and analyzes data from sensors, databases, and digital interfaces to extract insights and recognize patterns.
  • Reason: Uses an LLM as the central orchestrator to understand tasks, generate solutions, and coordinate specialized models with techniques like retrieval-augmented generation.
  • Act: Executes tasks autonomously via API integrations, with guardrails ensuring proper execution—for example, handling routine claims while escalating complex cases.
  • Learn: Continuously improves by refining models based on past interactions, enhancing decision-making and efficiency.

Agentic AI applications require multiple models, advanced RAG stacks, and complex data architectures. While standard RAG is effective for simple queries across a few documents, agentic RAG takes it further—introducing intelligence that enables AI agents to answer questions, analyze multiple sources, and even generate follow-up insights.

The retail sector is already experimenting with agentic AI shopping assistants that handle everything from product selection to checkout. The future may even involve AI-only shopping via APIs, where vendors design structured APIs that allow AI agents to interact directly with shopping platforms, bypassing traditional user interfaces.

As intelligent agents drive automation, businesses must advance their LLMOps capabilities to tackle challenges like governance, ethical considerations, and cybersecurity risks. Without robust guardrails, agentic AI may make untrustworthy decisions, rely on low-quality data, or face employee resistance, underscoring the need for strong oversight and security measures. Consequently, 75% of enterprises will fail to build these agents in-house and will turn to expert consultancies for custom agent setups or rely on agents embedded in existing vendor software ecosystems.

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Trend #5: Taking AI applications from POC to production will require a product-led AI strategy

Tech-driven AI projects often generate buzz but stall without strong business sponsorship or a clear ROI path, while business-led initiatives may struggle with technical challenges. A product-led strategy bridges this gap, aligning business goals with technical execution while ensuring continuous evolution. Organizations that embrace this approach, build cross-functional teams, and adopt product-led thinking from the start will be better positioned for success in 2025.

The goal is not to simply push an AI application out the door and consider it done—it’s to lay a solid foundation, put something out there for a small user community, and gradually expand through constant monitoring and tweaking. Start small, scale steadily, and consistently monitor and fine-tune your AI systems. Unlike traditional software, AI requires ongoing nurturing to prevent performance drift and ensure it thrives against all odds.

To take AI from POC to production, businesses must establish:

  • Zero-trust security layers to prevent vulnerabilities in multi-vendor environments
  • Modern data stores to eliminate silos and ensure structured training data
  • Observability platforms to monitor AI performance, usage, and costs
  • Model banks for centralized AI models with built-in testing for accuracy
  • API gateways with guardrails to enforce security and compliance
  • Orchestration layers to test and switch between third-party LLMs based on performance
  • CI/CD pipelines for automated AI deployment and ongoing updates

A dedicated LLMOps infrastructure ensures that AI applications scale successfully while minimizing risks. Grid Dynamics’ AI product & platform assessment helps organizations evaluate their AI readiness, address execution gaps, and create a clear roadmap for enterprise-wide AI adoption.

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Contributing authors

Rhiannon Hanger

STRATEGIC CLIENT PARTNER, DATA & AI

Rhiannon is one of Grid Dynamics’ Data & AI Leads in EMEA supporting enterprises with strategies to maximize business value from their data using AI. She has a diverse background in helping organizations leverage technology to reach outcomes across all business domains—with notable experience in Automotive, FMCG, BFSI, Life Sciences, Services Organizations, Construction & Manufacturing and Retail.

Balaji Ramaswamy

VICE PRESIDENT OF CUSTOMER SUCCESS

Balaji is a seasoned technology executive with over 20 years of experience driving digital transformation initiatives across Fortune 500 companies, with particular expertise in Retail, Consumer Goods, Transportation, and Life Sciences sectors. His comprehensive leadership approach spans strategic program development, multi-technology solution architecture, and global delivery management. He has demonstrated exceptional ability in cultivating customer relationships and developing transformative business engagements. Balaji excels at fostering collaboration between diverse teams and establishing strategic partnerships for market expansion. His consistent achievement in exceeding growth targets is complemented by proven success in building and mentoring high-performance teams in both consulting sales and engineering domains.

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