Forrester reveals top 10 emerging tech for 2025; AI innovation shifts from experimental to business essential
In December 2023, market research firm Forrester published a comprehensive report predicting ten emerging technologies that will significantly impact industries by 2025. These technologies span various domains, including artificial intelligence (AI), the Internet of Things (IoT), robotics, and data analytics. The report highlights a pivotal shift from experimental AI applications to the operational necessity of AI technology for businesses looking to stay competitive and adapt to rapid technological changes. A key development highlighted in the report is the transition from generative AI to agentive AI (Agentic AI). This evolution means that intelligent systems will become more autonomous and capable of making purposeful decisions independently. By the end of 2025, businesses are expected to move beyond merely experimenting with AI and fully integrate advanced AI solutions into their operations. Forrester emphasizes that this shift will enable companies to achieve greater efficiency, flexibility, and customer satisfaction through enhanced business process automation. The current geopolitical landscape presents additional challenges for businesses as they navigate technology investments. Making informed choices about which technologies to adopt and how to implement them will be crucial for driving growth and gaining a competitive edge. Cloud computing, data security, and digital marketing are also poised for significant advancements. Cloud platforms will continue to serve as essential infrastructure for innovation and scalability, allowing enterprises to rapidly incorporate new technologies. Data security remains a top priority due to increasing risks of data breaches and misuse. Enhanced digital marketing tools will enable companies to better engage with their target audiences, boosting brand visibility and market share. Globally, technology spending is forecasted to grow from $4.7 trillion in 2024 to $4.9 trillion in 2025, a 5.6% increase primarily driven by the rapid adoption of software, IT services, generative AI, and cloud technologies. The Asia-Pacific region and North America are expected to see the most substantial increases in technology investments. This growth underscores the importance of these regions in shaping the future of technology and business. Forrester's predictions extend beyond 2025, particularly in the realm of European e-commerce. By 2029, France, Germany, Italy, Spain, and the UK are projected to become the five largest economies in the European e-commerce market, with online sales growing from €389 billion in 2024 to €565 billion, representing a compound annual growth rate (CAGR) of 7.8%. These markets will see an increase in the share of online retail sales from 16% to 21% of total retail sales, reflecting the growing dominance of digital commerce. Agentive AI stands out as a transformative technology in this wave of innovation. It enhances the adaptability and decision-making capabilities of AI systems, allowing them to handle complex tasks autonomously. Forrester predicts that by 2025, the majority of Fortune 500 companies will have integrated Agentic AI into their operations to optimize processes, reduce costs, and improve customer interactions. The report also notes that successful implementation of these technologies will require not only financial investment but also the acquisition of skilled talent and robust training programs. Cloud computing will play a critical role in this transformation. Forrester expects cloud platforms to facilitate the deployment of advanced technologies by providing scalable, secure, and flexible infrastructure. This will enable businesses to quickly adapt to new technological trends and maintain their competitive edge. Data security measures will also need to evolve to protect sensitive information and prevent cybersecurity threats, which are becoming more sophisticated. Digital marketing is another area set to benefit from these technological advancements. Improved algorithms and data analytics will help companies deliver more personalized and effective marketing campaigns. Forrester foresees a future where AI-driven marketing tools can automate content creation, social media management, and customer engagement, leading to higher conversion rates and customer loyalty. In summary, Forrester's report indicates that by 2025, businesses will increasingly rely on advanced technologies like agentive AI, cloud computing, and improved data security to drive efficiency and innovation. The growth in technology spending and the expansion of digital commerce in Europe highlight the global trend towards adopting these solutions. However, the success of these initiatives hinges on companies making well-informed decisions and investing in both financial resources and human capital. Industry experts agree that Forrester's report provides valuable direction for future technology investments, especially in AI applications. According to Ira Kantor, a leading analyst at Forrester, the shift to agentive AI represents a new frontier in automation and decision-making. He advises companies to carefully assess their technology needs and align their investments with strategic goals to maximize the potential benefits. Forrester is a leading market research and technology consulting company founded in 1983 and headquartered in Cambridge, Massachusetts, USA. The company is listed on NASDAQ with the stock code FORR and operates globally, offering insights and strategic advice to multinational corporations and institutions. Known for its deep expertise in digital transformation and customer experience management, Forrester's latest predictions reinforce its reputation for insightful and forward-looking analysis in the tech industry.
