AI advancements in 2024 and key predictions for 2025

Artificial intelligence (AI) continues to reshape industries and transform society, with 2024 marking a year of significant breakthroughs. There have been substantial advancements in AI imaging technologies, including video generation, audio creation, and voice cloning.

While several sectors have benefited from AI, one of the most influenced has been financial services. Many financial institutions are now leveraging generative AI to revolutionise customer experiences, reduce costs, and enhance regulatory compliance[1], with larger, established banks making significant strides in integrating AI into their operations. Meanwhile, smaller, challenger brands are exploring its potential for efficiency gains.

From an enterprise perspective, more sophisticated AI applications began driving operational efficiencies and enhancing customer engagement. Another significant area of growth was in multi-agent solutions, also known as agentic systems[2], which gives enterprises the ability to optimise operations and improve user experiences. Advancements in robotics and computer control have grown the number of practical use cases for both industries and governments, presenting new avenues to create better value for customers.

Looking ahead to 2025, the public sector is another that is set to greatly benefit from AI. Various government bodies are beginning to explore and/or adopt AI applications that could deliver exponential returns on investment, particularly in cost savings and improved citizen services. Estimates from the Tony Blair Institute for Global Change suggest possible savings of up to £200 billion[3], underscoring the transformative impact AI could have on public services.

Challenges and risks
Despite its promise, AI adoption has not been without obstacles. One of the most significant challenges has been the risk of inaccuracies in AI-generated content[4], whether in imagery, audio, or text. Concerns about misinformation and reputational damage have made some organisations cautious about embracing fully autonomous AI solutions.

Hallucinations, where AI produces incorrect or nonsensical information, remain a persistent issue. Additionally, privacy and data security concerns continue to challenge businesses and governments alike. As AI technology becomes more advanced, there is potential for malefactors to use it to their advantage, such as using generative AI to manipulate imagery and data. However, the release of tools such as Google's open-source watermarking technology for combating deepfakes represents a promising step toward mitigating these risks.

Alongside these concerns around the authenticity of technological progress, regulatory frameworks such as the EU AI Act and executive orders in the United States have emerged to guide AI's development. These necessary policies aim to ensure responsible use, yet overly restrictive regulations, particularly in Europe, could impede innovation and competitiveness. As the speed of AI advancements outpaces the regulatory process, balancing innovation with accountability remains a pressing challenge.

AI and the future of work
AI is fundamentally reshaping the workplace by enabling faster decision-making and democratising access to information. Tools that enhance creativity and productivity are driving innovation across industries, while also creating new opportunities for inclusivity and diversity. The structure of AI project teams is evolving in response to these advancements.

Unlike traditional AI projects, which primarily involve data scientists, generative AI initiatives require multidisciplinary teams comprising business analysts, end users, product managers, and engineers. This shift emphasises rapid execution, measurable outcomes, and a collaborative approach to problem-solving. AI-assisted development tools are streamlining coding processes but the demand for skilled developers and engineers remains strong. It is important to retain this balance, so companies do not become over-reliant on this technology. AI certainly cannot replace the people that drive organisations, but tools are enabling teams to address more tasks from their backlog. This unlocks additional value for organisations, which is crucial at a time when finding cost-savings and efficiencies are at the top of many companies' agendas.

What's more, there are plenty of use cases to show how AI is being implemented for good and helping not-for-profit organisations to benefit society. For instance, Dyslexia Association Ireland has adopted a generative AI model to power a solution that helps people living with dyslexia, and other learning disabilities, read their favourite content. This application allows users to read in ways that meet their needs.

How AI will evolve in 2025 and beyond
As AI technologies mature, 2025 is expected to mark the widespread "productionisation" of AI across enterprises. This is likely to lead to transformative changes in how people interact with businesses and governments, improving customer experiences and operational efficiencies.

We can expect to see the rise in the use of video and audio generation technologies continue, particularly for creating personalised and immersive user experiences. Analysts are firmly of the opinion that generative AI will transform every industry; it is simply a matter of time[5]. However, we must maintain realistic expectations and ensure there is not an over-reliance on what AI is currently capable of.

Looking even further ahead, there has been progress in building alternative AI architectures – those not based on large language models (LLMs) – to improve transparency and accuracy. While breakthroughs in this area may not occur until 2026, such innovations hold great promise for addressing current limitations in AI technologies.

Challenges such as hallucinations and regulatory complexities may persist, but organisations that embrace a culture of curiosity and adaptability are well-positioned to harness AI's potential. We have seen strong signs that organisations are fostering collaboration, managing risks, and focusing on delivering tangible value. This approach will ensure businesses and governments enjoy a bright future, where a combination of human innovation and AI solutions are harnessed to deliver success.