Industry executives and experts share their predictions for 2025. Read them in this 17th annual VMblog.com series exclusive.
By PwC Leaders
In
the past year, AI’s pace of innovation, investment and business buy-in across industries
has become unprecedented – and this is only the beginning. As we enter 2025, these
advancements will only continue, and company leaders AI choices might be the
most crucial decisions they make in their career.
According
to PwC’s Pulse Survey, nearly half (49%) of technology leaders
said that AI is now fully embedded in their companies’ core business strategies,
while one-third highlight its integration into products and services. Embedding
AI at the heart of an organization is essential, as transformative “big
leaps”-such as developing new business models-represent just one of the
many ways AI delivers game-changing value.
Five leaders from PwC present an AI-focused vision for 2025, each offering a forward-looking perspective on how
AI will continue to evolve and transform industries in the coming year. As
businesses navigate this rapidly advancing landscape, these insights serve as a
roadmap to harness AI’s potential and stay ahead in an increasingly competitive
world.
AI will be a
strategic game-changer in 2025
Dan Priest,
Chief AI Officer, PwC US
In 2025, AI strategy will focus on immediate
value creation beyond productivity, embedding AI deeply into operations to gain
a competitive edge. A portfolio approach will drive success: a “ground
game” delivering incremental wins, “roofshots” unlocking
transformative but attainable changes, and “moonshots” pursuing
high-reward innovations like new AI-driven business models. Prioritizing
proprietary data and institutional knowledge over the choice of LLM will be key
to differentiation, as AI-powered cloud architectures drive scalable, tailored
solutions. Companies that embrace this portfolio approach will likely outpace
competitors and help build lasting strategic advantages.
Companies will harness AI to accelerate
R&D and product design
Scott
Likens, Chief AI Engineering Officer, PwC US
In 2025, AI will redefine product design and
R&D, allowing companies to cut time-to-market by up to 50% and reduce costs
by approximately 30%. Multimodal AI will change processes by accelerating
design iterations, enhancing virtual testing, and uncovering solutions
engineers might miss. However, a skills gap threatens progress, so upskilling
design and manufacturing teams with AI capabilities and recruiting AI-savvy
talent will be important. Companies that recognize this opportunity will likely
gain faster innovation cycles, lower costs, and greater product personalization,
driving customer satisfaction and a competitive advantage.
AI governance in 2025: building trust
through transparency and oversight
Jennifer
Kosar, AI Assurance Leader, PwC US
In 2025, AI
governance will transition from being just a priority to becoming essential as
companies integrate the tech more deeply into operations. Systematic,
transparent approaches to managing AI risks, validating controls, and building
sustained value will become nonnegotiable, driven by stakeholder demands and
the role AI plays in business success. Leaders will aim to get ahead of regulatory
clarity, recognizing the urgency of robust oversight to avoid risks like
compliance failures or reputational damage. Independent assessments, whether
from upskilled internal teams or third-party specialists, will be vital to
building trust and unlocking AI’s potential.
From renewable energy to smarter supply
chains, AI will redefine sustainability
Sammy
Lakshmanan, Sustainability Principal, PwC US
AI will be valuable in accelerating the
energy transition and helping businesses meet their sustainability goals. While
advancements in chips, models, and energy supply are underway, a supply-demand
equilibrium for AI power won’t be reached by 2025, making it essential to
prioritize value-driven, efficient deployments. Globally, AI will help drive
the shift to renewables and push businesses to advocate for a modernized,
greener energy grid. Additionally, AI can streamline compliance with emerging
sustainability regulations, optimize supply chain practices, and democratize
access to sustainability data, embedding it into corporate decision-making
beyond just ESG specialists.
AI will reinvent industry landscapes and shape future
competitiveness
Mike
Thiessen, Chief Clients and Market Officer, PwC US
AI is set to revolutionize competitive
landscapes across various industries, with each advancing at different paces.
In consumer markets, companies will enhance operations such as marketing and
customer service with AI-driven tools like chatbots and dynamic pricing. Additionally, AI
will help curate bespoke client experiences by analyzing consumer data and
preferences to deliver more personalized recommendations and interactions. Financial services can expect to see a renewal in
AI-native start-ups and large institutions leveraging AI for innovation, though
firms delaying their AI strategies will risk falling behind. In healthcare, AI
will accelerate change in drug development and clinical operations under a more
flexible regulatory environment, while industrial and tech sectors will use AI
to optimize processes and reshape business models, enhancing efficiency and
reducing reliance on traditional systems.
To summarize…
As we step into another year, the strategic integration of AI will not
only redefine industry standards but also determine the competitive edge of the
businesses that are bold enough to embrace its transformative potential.
By leveraging AI’s unique
capabilities thoughtfully and responsibly across operations, R&D, product
design, governance, and sustainability, forward-thinking organizations will set
the pace for future innovations and drive sustained value across their
industries – in 2025 and beyond.
##
