With a new year around the corner, it’s time to start thinking about what tech trends are coming in the months ahead, 2025 will be interesting.

Because now that AI has been around long enough to go from novel to normal, we should stop marveling at what it can do – and start watching what it actually does.

I think we’ll have some surprises in store. After more than a year of speculation about how AI will drastically change our lives, there’s a good chance we’ll see a blend of forward motion with a return to fundamentals. The hype dies down. Simplicity makes a comeback.

When it comes to AI – and how it will impact our lives and businesses in 2025 – here are four things I expect will dominate the conversation:

1. What's old is new again

With technology becoming so big and pervasive, I think we’ll see a turn toward smaller, quieter, easier ways of working. Small language models will appeal to businesses looking for focused solutions that are faster and less resource-intensive than their large language model (LLM) counterparts.

We may even see a resurgence in “dumb” phones that provide a respite from our always-on digital world. It’s not that we’re turning our backs on progress. It’s more that we’re shifting toward a better balance that prioritizes simplicity and clarity.

2. Generative AI hype cycle comes back down to earth

GenAI will never not be cool, but we’ll reach a point where the hype finally settles and we get down to the business of delivering real value. We’ll see less buzz and more practical applications, which means more streamlined approaches, targeted use of LLMs, and a greater focus on building stable, sustainable models that solve real-world problems. And that Nvidia stock? We might want to keep an eye on it.

3. Impacts of AI regulation

We’re seeing additional regulations to keep AI in check, which keeps businesses accountable – but makes it harder to freely tap into open-source resources. And that, of course, means innovation takes a hit and more silos appear as companies create solutions tailored to meet region-specific regulations.

It’s possible that the impacts will be temporary. In the meantime, tech companies can focus on finding compliant solutions that drive progress without compromising ethics or accountability.

4. More mergers and acquisitions

Finally, expect significant consolidation in the AI and data sectors in 2025. Established organizations will look to acquire smaller, more innovative players to merge data analytics and AI capabilities. There’s no question that evolving technologies will inspire interesting new partnerships.

Embracing the future of tech

As I see it, 2025 will be a year of balancing innovation with pragmatism. We’re watching a fascinating mix of trends that nod to simplicity and progress, signaling a shift in how people and businesses approach technology.

Whether it’s finding smaller, quieter tech solutions, streamlining AI use, or navigating regulations, each of these trends reflects a desire for purpose-driven innovation. I’m excited to see how these trends evolve and what new opportunities they’ll bring along with them.

Jared Peterson, Sr. Vice President of Platform Engineering

As Senior Vice President of Platform Engineering at SAS, Peterson leads a global, multi-faceted team dedicated to reliably delivering SAS’ market-leading data and AI platform. He is responsible for all aspects of research and development, including project management, cloud-native design, software engineering, application security, test automation and continuous integration/continuous delivery (CI/CD).

www.sas.com