Five digital transformation trends to watch out in 2025

Digital transformation is on its way to disrupt businesses, and we bring you the top five trends that are likely to shape the fortunes of companies across the industry verticals.

We are heading into 2025, and digital transformation landscape will get wild. Businesses worldwide are moving faster on new technologies to stay relevant in a changing market. The innovations are fast making their way into markets and changing the fundamental tenets of how organizations work. 

Here's a list of the top five digital transformation trends that we will likely witness in 2025.

1. Agentic AI: The year 2025 will make the growing impact of Agentic AI more apparent to all. Unlike traditional AI systems that need human input to make decisions, Agentic AI takes action on its own to achieve specific objectives. Gartner says it will help collaboration by uncovering insights from subtle patterns and events that human teams miss. This will improve decision-making and make Agentic AI a key enabler of innovation and efficiency in modern organizations.

Use cases and benefits
a) Customer experience: Businesses can provide a personalized and seamless customer experience by automating decision-making at all touchpoints.

b) Project management: Agentic AI can handle complex project management and allied domain tasks. As technology offers natural language processing capabilities, managers can easily keep track of the timelines and take remedial actions in case divergence is observed.

c) Market impact: Agentic AI has the potential to reduce operational costs by up to 30%. The technology can also enhance teams’ productivity and achieve superior results on KPIs.

2. Multimodal AI: Multimodal AI can revolutionize how machines interpret and interact with data. It boasts human-like intelligence, and by integrating different messaging formats, the technology is on its way to becoming mainstream in 2025. No wonder, Grand View Research estimates the market for multimodal AI will reach $10.89 billion by 2030 with a 35.8% CAGR.

Industry applications
a) Healthcare: Multimodal AI can help analyze patient records and medical imaging and evaluate voice data.

b) E-commerce: Retailers can use Multimodal AI to offer personalized recommendations based on customers' browsing behavior, reviews, and visual preferences.

c) Manufacturing: Producers can use Multimodal AI to aid manufacturing operations and monitor quality control.

d) Key stats: By 2025, 50% plus customer service interactions will have multimodal AI, leading to a 25% increase in customer satisfaction.

3. Hyperautomation: Hyperautomation combines AI, machine learning, and robotic process automation (RPA). The trend is likely to pick up in 2025 as it allows businesses to become more efficient. The hyperautomation market is expected to reach $197.58 billion by 2032, which speaks a lot about the technology's growth potential.

Real-world impacts

a) Retail: Hyperautomation can streamline inventory management and supply chain operations.

b) Finance: Banks and financial institutions will reduce fraud and improve customer satisfaction through automated systems.

c) Economic implications: Businesses with hyperautomation can save about $150 Bn annually in operations by 2025.

4. Digital twins: According to Markets and Markets, digital twins will rise further in prominence in 2025, and grow from $20.36 billion in 2024 to $62.64 billion by 2028. By providing real-time insights into operations, the technology can help companies optimize processes, predict failures, and reduce downtime.

Use cases
a) Healthcare: Digital twins can enable personalized care in the healthcare sector by offering patients continuous monitoring.

b) Manufacturing: Producers can use digital twins to enhance efficiency and deploy predictive maintenance tools.

c) Construction: In the real-estate sector, digital twins can be used as virtual replicas to plan and visualize projects before their actual implementation on the ground.

d) Market impact: Digital twins could improve companies' operational efficiency by 2025 by 20%.

5. Democratized AI: The democratization of AI that has started in recent years will likely continue in 2025. This trend is encouraging as it will ensure that even small and medium enterprises (SMEs) have access to AI and related technologies. We also anticipate a boost to GenAI adoption by 2026 as an increasing number of companies are showing interest in the technology's generative aspect. 

Key drivers
a) No-code/low-code platforms: In 2025, no-code/low-code will democratize AI adoption by allowing anyone to use the technology without any technical or coding prerequisites.

b) AI-as-a-service (AIaaS): Scalable, subscription-based AI solutions will allow companies to use AI without necessitating investments in technology architecture.

c) Predicted outcomes: SMEs using AI tools will likely increase operational efficiency and revenue by 35% and 20% by 2025, respectively.

Conclusion
Digital transformation is here, and the year 2025 will make a decisive change in the way companies use technology to formulate and implement their business strategies and operating models. From Agentic AI to Multimodal AI, these trends will bring efficiency, customer satisfaction, and innovation to the market. 

Further, organizations that adopt hyperautomation, digital twins, and AIaaS will gain and retain a competitive edge over rivals. Remember, the key to maintaining competitiveness is getting in early in the adoption cycle and improvising with the changing business environment.  

-- Sameer Danave, Senior Director Marketing, MSys Technologies.