AI in 2025: From smartphones to society, how will AI reshape the world?

AI will almost certainly still be the biggest tech topic in 2025. It will become even more a part of our lives, at work, in school, at the hospital, and at home.

As AI gets more powerful, it's more important to think about the ethical problems it creates for people and society. We still have many questions: How will it change jobs? Will it stop people from being creative? And how does collecting lots of personal information to train AI affect our privacy online?

By 2025, AI is also expected to play a central role in devices, industries, and society as a whole. From personalising our gadgets to reshaping how we search for information, AI’s influence will be felt across every aspect of daily life. The advancements on the horizon signal a shift from novelty to necessity, setting the stage for a smarter and more connected future.

Smarter Phones with GenAI

By 2025, around 30% of all smartphones will have generative AI, or GenAI, which lets phones personalise the way they work for each user. Tarun Pathak, Research Director, Mobile Devices and Ecosystems at Counterpoint Research explains, "People will enjoy more personalised experiences with their devices." This means that instead of focusing on things like camera quality or battery life, phone makers will compete to offer the best personalisation features.

GenAI is already helping with tasks like writing and editing documents. But by 2025, people will use it even more for things like creating images or using voice commands. Prabhu Ram, VP - Industry Research Group (IRG), CyberMedia Research (CMR) adds that while in 2024 most people chose phones for things like storage and design, by 2025, AI will be a key feature, even in less expensive phones. It will help people be more creative and communicate more easily.

AI's Impact on the PC Market

The influence of AI isn’t limited to smartphones. The global laptop market is set to grow by 5% year-over-year in 2025, driven by an AI-driven replacement cycle. According to Pathak, "Emerging use cases in PCs, particularly within enterprise and commercial sectors, will play a significant role in this growth." Laptops with GenAI capabilities will cater to increasingly demanding applications, from automated workflows to advanced analytics, solidifying their role in professional settings.

Semiconductors: The Backbone of AI

The semiconductor industry is poised to see substantial growth, more than doubling in content over the next few years, thanks to the rise of GenAI. Pathak explains, "This growth will largely be driven by on-device GenAI adoption, preferred for its privacy benefits." Purpose-optimised large language models (LLMs) and micro-AI models for edge devices will become essential, enabling real-time processing without compromising user data.

Edge AI, which focuses on processing data locally rather than in centralised data centres, is expected to gain prominence. This shift will not only enhance data privacy but also reduce latency, making AI applications faster and more efficient for end users. The growing emphasis on semiconductors highlights the foundational role hardware continues to play in enabling AI advancements.

From AI Helpers to AI Doing It All

Right now, AI works as a copilot, an assistant that helps with tasks like writing emails or finding information. However, in 2025, a key shift in the AI landscape will be the transition from AI copilots to autonomous agents. These agents will perform complex tasks with minimal human intervention, such as scheduling meetings or purchasing goods online. However, as Pathak emphasises, "Responsible AI and regulatory frameworks will gain prominence, ensuring these systems operate ethically and transparently."

AI and Extended Reality (XR)

While the rise of AI may appear to overshadow extended reality (XR) technologies, Pathak argues that it will serve as a catalyst rather than a competitor. "Major XR players such as Meta, Apple, and Samsung continue to show faith in the long-term prospects of the technology," he notes. For instance, Meta has already integrated AI into its smart glasses, and Samsung is likely to follow suit with its upcoming headset.

AI’s role in XR goes beyond simple integration. It enhances the user experience by enabling features like real-time language translation, gesture recognition, and personalised virtual environments.

Information Search: From Search to Seek

Ram also predicts a transformative shift in how consumers access information by 2025. He notes that "AI advancements are expected to drive a shift from passive 'search' to active 'seek.' Traditional search engines like Google may see a decline as AI-powered platforms such as Perplexity gain traction. Consumers increasingly demand instant, concise, and synthesised answers, eliminating the need to sift through vast amounts of content. This shift underscores the growing preference for efficiency and precision in digital interactions.

What’s Next for AI?

Several trends will shape AI in 2025:

• Apps Built for AI: Applications built natively with AI at their core will solve problems and offer unique experiences.
• Collaborative AI Agents: Systems comprising multiple AI agents with varying levels of expertise will enable more sophisticated and coordinated actions.
• GenAI for content creation: The use of AI for creating content, particularly video, is expected to surge, offering new avenues for creativity and communication.
• AI Everywhere: Beyond phones and laptops, AI will be in smartwatches, home devices, and even cars.

The Future is AI

AI is changing how we live and work. By 2025, it will play a key role in devices, jobs, and even how we search for information. But with this power comes responsibility. As Pathak puts it, "AI is a tool to transform our world. Its success depends on using it wisely and fairly." Policymakers, companies, and users all have a role in making sure AI benefits everyone.