AI Trends Report 2025: All 16 Trends at a Glance

In recent years, artificial intelligence has experienced an unprecedented rise and is now an indispensable part of the daily lives of millions. The AI Trends Report 2025 sheds light on this rapid development and provides a comprehensive overview of the key trends and challenges we will face this year.

The report illustrates through numerous examples how deeply AI has already permeated all areas of our society and the immense economic potential the technology holds. However, despite technological advancements, experts urge caution: the gap between substantial investments in AI and the actually realized financial returns is already glaring. Additionally, ethical questions concerning AI agents, avatars, robots, and more arise.

This blog offers just a glimpse into the extensive AI Trends Report 2025, which boasts over 100 pages and more than 60 expert statements. The full report provides valuable insights for those who not only want to recognize the opportunities of AI but also wish to leverage them.

1. AI Agents Revolutionize the Job Market

AI agents, a new generation of autonomous AI systems, are in the media spotlight. All tech giants—from Microsoft to Nvidia to Google—are investing heavily in this technology. The reason: AI agents can work autonomously, make decisions, and interact with their surroundings, promising a significant boost in productivity. Companies that gradually automate their processes with AI agents could gain substantial competitive advantages. Experts predict that AI agents will autonomously make about 15% of daily work decisions by 2028. Despite the hype, skeptics express concerns about their reliability and impact on the job market. While AI agents can relieve humans of many tedious, unpopular routine tasks, they could also significantly promote unemployment and overwhelm millions in the new form of human-machine cooperation. Developing responsible AI agents, therefore, requires robust regulatory frameworks.

2. Low-Code and No-Code Democratize Software Development

In 2025, software development experiences a turning point with low-code and no-code tools. These technologies enable even laypeople to create software and apps, boosting productivity and changing the development of digital solutions. The shortage of skilled workers and overloaded IT departments increase the demand for such tools. AI-supported coding tools like GitHub Copilot and Spark assist developers with complex tasks and allow the creation of micro-apps without programming knowledge. Low-code platforms promote the concept of “Citizen Development,” enabling employees without an IT background to develop solutions independently. Forecasts suggest that by 2025, over 70% of application development could be based on low-code. Despite the advantages, there are concerns about a possible overreliance on these tools and the neglect of fundamental programming skills. Companies must ensure that these tools do not replace professional experience and training. Balancing innovation with traditional values remains a central challenge.

3. AI Achieves the First Major Scientific Breakthrough

AI perhaps offers the clearest positive opportunities for humanity in science. It is fundamentally changing fields like medicine, materials science, and climate science. In medicine, AI is already accelerating the development of personalized therapies and improving diagnoses. In materials science, AI discovers new materials that support more efficient energy sources, while in climate science, AI is used to improve weather forecasts and combat climate change. Some experts express concerns that creative approaches might be neglected. However, the innovations brought by AI-supported technologies, from protein engineering to cognitive behavioral therapy, prevail. The notion of a self-improving AI conducting independent research is becoming tangible, with new tools automating the research process.

4. Tech Companies Release “AI Light Versions” for the EU Market

The AI Act and GDPR have significant impacts on the availability of AI products in the EU. Major tech companies like Apple, OpenAI, and Meta are already restricting their offerings or delaying releases due to strict European regulations. The AI Act adopts a risk-based approach and applies to international companies operating in the EU. A central issue: the tension between the AI Act and existing laws like GDPR and certain industry regulations. Furthermore, global AI regulation is extremely inconsistent, with different approaches in the US, Canada, and China, complicating international compliance.

5. The AI Investment Bubble Will Burst

The AI industry experienced a massive investment boom in 2024, where companies received billion-dollar financing, often without viable business models. Some see this situation as a bubble, similar to the dot-com bubble in the early 2000s, and the Deepseek shock seems to partially confirm this. A potential market shakeout might not only be negative but could also create space for sustainable startups. For now, the gap between investments and actual revenues remains a challenge, as companies like Nvidia and OpenAI have yet to offer widely useful AI products. Additionally, physical constraints such as chip and energy supply bottlenecks persist. Whether there is an AI bubble and if it will burst remains controversial. However, it is more likely that some expectations will be adjusted in 2025, while AI continues to grow in the long term.

6. AI Avatars Shape New Creative and Ethical Standards

Voice cloning, generative video AI, and multimodality are revolutionizing the creative industry by enabling the creation of realistic digital avatars. These technologies find applications in areas like marketing, entertainment, and education but raise ethical and legal questions, particularly concerning deepfakes and copyrights. While companies like Zoom and Microsoft are working on AI-supported avatars for meetings, projects like the AI-generated Jesus avatar in Lucerne demonstrate the true versatility of digital proxies. Studios in the music and film industries are already using AI tools for production and editing, leading to debates about their impact on human artists. It is clear: the technology opens up new possibilities but also poses risks of misinformation and misuse (keyword: deepfakes).

7. Article 4 of the AI Act Promotes AI Education in Companies

The EU’s AI Act, effective February 2025, marks a turning point for companies working with artificial intelligence. It mandates compulsory AI training for employees to ensure sufficient understanding of AI’s functioning and impact. This includes the ability to weigh opportunities and risks. Companies are required to offer appropriate training to minimize legal risks and improve compliance. This mandatory training also offers companies significant opportunities for innovation and competitiveness. AI skills of employees—from technical know-how to legal and ethical competencies—are considered crucial for companies’ future viability.

8. Automated Learning Platforms Democratize Education

The increasing integration of AI into the educational landscape promises a fundamental change in learning. Highly personalized learning platforms and automated content creation aim to democratize education and make it tailored to individual needs. In developing regions, such technologies could revolutionize access to education. Despite the potential, challenges such as “toolification” and the competence paradox must be overcome. Critical thinking and media literacy are crucial for effectively using AI. It remains to be investigated under which circumstances AI suppresses creativity or encourages cheating. It is clear: educational institutions must rethink traditional learning concepts and promote a deep understanding of technologies and ethical questions to harness the positive potentials of AI.

9. Conversational AI Replaces Prompting

Since the release of ChatGPT in fall 2022, the AI world has fundamentally changed. Language models are no longer just tools for text summarization but are evolving into dialogue partners capable of discussing complex topics. This development marks the beginning of a new era of conversational AI, enabling natural conversations with AI systems. The technology is based on generative AI, capable of processing multimodal inputs, and has far-reaching implications for areas like education and customer service. Like prompting, conversational AI also places high demands on users, who must learn to strategically manage their interactions with AI. Then, this new form of human-machine interaction has the potential to truly revolutionize the everyday use of AI.

10. AI Integration Transforms the User Experience

The integration of AI into operating systems, cloud platforms, specialized hardware, and standard software is rapidly progressing, changing the way technology is used. Modern operating systems like Windows and macOS increasingly integrate AI functions that enhance the user experience. Microsoft is working on a new operating system, Windows 12, which could offer profound AI functions. Nvidia has introduced “Project Digits,” a mini AI supercomputer capable of running powerful AI models locally. Amazon offers AWS Bedrock, a platform for accessing over 100 AI models, and plans to build a supercomputer cluster. OpenAI is integrating AI technology into desktop environments and planning its own AI operating system. These developments mark the beginning of a new era, where AI becomes an integral part of the technology environment.

11. Instead of a Plateau, We See Further Advances in LLM Performance

In 2025, OpenAI CEO Sam Altman expects the breakthrough to Artificial General Intelligence (AGI), which not only matches but surpasses human thinking capacities. Advances in AI research, especially with the o3 system, show that AI models are increasingly capable of adapting to novel tasks. However, it is more realistic that innovative architectures such as reinforcement learning and chain-of-thought reasoning overcome a previously feared LLM plateau and bring us new progress. Deepseek sends its regards.

12. LAMs and CUAs Take Control of Your Desktop

Large Action Models (LAMs) and Computer-using Agents (CUAs) are evolutions of large language models (LLMs) that go beyond mere text creation and can use tools. The interactive systems could soon autonomously control many typical tasks on our PCs by interpreting requests, analyzing various data types, and executing targeted actions. How does it work? The systems combine neural networks with symbolic reasoning to make logical decisions and automate complex tasks.

13. Germany Plans an AI Data Center

We predict: the German government will initiate the construction of a state-of-the-art AI data center to strengthen competitiveness in the global AI market and facilitate access to AI technologies for SMEs and startups. Despite smaller successes, such as promoting AI service centers and projects at the state level, Germany lags behind countries like the USA and China in international comparison, which are already heavily investing in AI infrastructure. The combination of government initiatives and private engagement could provide the necessary innovation boost, enabling Germany and Europe to become innovators rather than just consumers in the global AI competition.

14. AI Governance Becomes a Competitive Advantage

Studies show that many German companies have concerns about data protection and security in AI projects. Solid AI governance allows companies to strengthen trust in their products and services and achieve economic benefits. Highly regulated industries, such as pharmaceuticals and finance, benefit from clear rules to confidently promote innovations. Beyond legal regulations of AI, a robust AI governance framework creates clear responsibilities within the company and emphasizes principles like control and transparency. In this sense, AI governance is more than an organizational tool; it is the key to aligning AI with ethical standards and societal values.

15. A German AI Startup Achieves Global Breakthrough

While Europe is making progress with companies like Mistral and Aleph Alpha, “our” startups lag behind the USA, partly due to a lack of support from experienced founders and investors. Additionally, the AI Act and GDPR act as growth brakes by introducing strict requirements for AI systems. Nevertheless, there are positive developments, such as the German startup Black Forest Labs, which impresses investors with innovative AI solutions. To compete globally, Europe must invest in research and development and create attractive careers. 2025 could be a decisive year for Europe’s position in the AI sector. However, it requires courage and long-term investments from key stakeholders.

16. The Era of Cheap AI is Over

The demand for advanced AI models is growing, and so are the costs. Whether the Deepseek shock will sustainably impact this trend remains to be seen. While the intense competition among AI companies further fuels a price war, the costs for developing and operating new models are also rising. OpenAI and other providers have already announced price increases to cover rising costs. This could pose challenges for smaller enterprise customers, while large corporations can afford the budgets for more expensive models. However, rising prices could also act as a driver of innovation, encouraging more players to develop cost-efficient alternatives.

On the Threshold of an AI Revolution: A Look into the Future

The world is changing, and artificial intelligence could play a crucial role in addressing challenges. The AI Trends Report 2025 offers valuable insights to responsibly harness the opportunities of AI. It highlights how quickly AI technologies permeate our daily lives and emphasizes the importance of meaningful and ethical use. Ultimately, it is our responsibility to use AI for positive change and a sustainable future.