Top Technology Trends in 2024 and 2025. Part 1
The Rise of Cloud Services and Agentic AI: A Shift in Technology and Business
In this first part of our two-part podcast series, technology writer Mark Hillary and analyst Peter Ryan discuss the growing impact of cloud services and the rise of agentic AI. They explore how cloud adoption drives innovation, reduces costs, and transforms business operations. The conversation also covers the evolution of AI from a disruptive force to a practical tool for productivity, and how agentic AI is shaping the future of decision-making and workplace efficiency.
The Ubiquity of Cloud-Based Services
Mark: Today, nearly all new services are cloud-based. It has become increasingly rare to find services that aren’t delivered via the cloud. Recent data from Gartner reveals that 85% of international companies are now adopting a cloud-first strategy for all their services. Cloud technology is no longer just a part of IT—it has become the backbone of service delivery.
Spending on cloud solutions has surged, with a 22% increase over the past year. This trend underscores how technology and service delivery have evolved. The cloud is not just a tool; it’s the foundation for modern service architecture
Peter: I completely agree with Mark. In my company, we’ve observed that cloud adoption is not just about delivering services but also about procuring them. A survey we conducted among enterprises shows that heading into 2025, cloud-based technologies will dominate procurement decisions in IT services and business process outsourcing.
The demand for cloud solutions transcends sectors and geographies. Enterprises view the cloud as the most robust and secure technology available, ensuring unparalleled business continuity. Regardless of industry or location, the cloud’s reliability makes it indispensable.
Cost and Innovation: Key Drivers of Cloud Adoption
Mark: Two critical factors drive cloud adoption: cost and innovation. A decade ago, launching a new service or business required substantial upfront investments in equipment and data centers. Today, cloud technology enables a pay-as-you-go model, drastically lowering the financial barriers to entry. Entrepreneurs and companies can test ideas or launch services without significant initial costs.
Innovation is another major advantage. In the past, businesses with local servers had to manage upgrades, security patches, and system maintenance in-house. Now, with cloud providers handling these responsibilities, companies can seamlessly adopt emerging technologies like quantum computing. The cloud opens the door to continuous innovation without the traditional overhead.
Peter: The agility of cloud-based systems is transformative. Gone are the days of massive server rooms in high-risk urban areas like London or New York. The cloud minimizes operational risks and enhances business continuity. Beyond innovation, it’s a vital tool for de-risking IT and operations.
AI also plays a significant role here. Two years ago, when ChatGPT first launched, it sparked widespread discussions about AI’s potential. Today, we see practical use cases where AI enhances work processes rather than replacing jobs. This shift in narrative highlights AI’s role as a tool for efficiency and effectiveness rather than disruption.
The Evolution of AI: From Hype to Practicality
Mark: When OpenAI introduced ChatGPT, it brought AI into the mainstream, raising public expectations. While initial media coverage in 2023 predicted revolutionary changes, 2024 marked a period of maturity. Companies realized the substantial training required for large language models to function effectively. The exaggerated claims of replacing entire workforces with AI bots gave way to a more grounded understanding of AI as a powerful tool for enhancing productivity.
Peter: This evolution in AI perception is crucial. AI’s practical applications are now the focus. Over the past six months, we’ve seen real-world use cases emerge. AI tools are no longer viewed as job threats but as resources to assist employees in completing tasks more efficiently. This approach fosters workplace efficiency and creates stronger employee-company relationships.
Agentic AI: The Next Frontier
Mark: Agentic AI introduces the concept of autonomous digital assistants working on our behalf. While tools like Siri and Alexa perform basic tasks, agentic AI has the potential to revolutionize personal and enterprise environments. These assistants could handle complex decision-making, such as finding and booking travel deals within specified budgets.
This shift empowers employees across all levels. Developers, for example, could rely on AI to handle routine coding tasks, enabling them to focus on higher-value activities. Similarly, customer service representatives could leverage AI to enhance their understanding of products and improve interactions.
Peter: The productivity boost from agentic AI is undeniable. By reducing workplace inefficiencies, this technology addresses issues like employee burnout and mental health concerns. Digital assistants equipped with advanced AI capabilities could redefine how consumers and employees interact with businesses. The potential for streamlined processes and enhanced decision-making makes agentic AI a game-changer.
Mark: These assistants will learn and adapt, offering personalized solutions. As consumer expectations for AI-driven services grow, enterprises will need to align their operations with these advancements. The normalization of agentic AI in consumer technology will likely drive its adoption within businesses, setting a new standard for efficiency and innovation.
Peter: This technology moves forward, as more of these company directors look to try and deploy these types of technologies within their organizations to render the greater efficiencies as it relates to operations. I have no doubt that there’s going to be a plethora of options out there, some that will be perhaps more across the board, some that will be vertically focused. The future is looking very good for agentic AI.
The CIO's Evolving Role and The Need for Ethical Safeguards
Mark: The evolving role of CIOs and CTOs in modern organizations underscores the urgent need for AI governance. Historically, these positions held significant authority over organizational technology decisions. However, a decentralization trend has shifted responsibility to individual business lines, which now frequently choose their own cloud-based tools and systems. This shift necessitates a unified framework to guide how AI is utilized responsibly across the organization.
Such frameworks should address key concerns like security enhancement, ethical deployment, and minimizing risks. Proactive strategies for leveraging AI must coexist with safeguards to prevent misuse or chaotic implementation across departments. Without clear policies, businesses risk falling into disarray, jeopardizing both operations and compliance.
Peter: The lack of robust AI governance can lead to a “Wild West” scenario in corporate environments. Establishing ethical guidelines for AI usage—defining acceptable and unacceptable practices—is essential for organizations across industries and geographies. The real challenge lies in finding qualified subject matter experts to enforce compliance.
With regulatory bodies likely mandating AI safeguards in the near future, businesses will need to prepare for heightened scrutiny. However, compliance departments, already overwhelmed with existing regulations, face the daunting task of integrating these new requirements. This adds another layer of complexity to a field that is still relatively uncharted.
The Emerging Threat of Corporate Disinformation
Mark: I think Peter just mentioned a couple of points that are really valid there. The automation of decision-making processes, particularly in functions like HR, brings both efficiencies and ethical concerns. Many companies rely on AI-driven tools to screen job applications, administer initial tests, and evaluate candidates—often without human involvement. You’re being entirely judged and screened based on the information that you’ve supplied on your application. And if you can get through that initial check, quite often now there’s a second check where you can do a sort of test or some sort of initial interaction. And again, that’s all entirely automated.
This reliance raises critical questions about bias and fairness. Are these algorithms being checked for prejudices? Are decisions based on equitable criteria, or are they perpetuating existing biases in the training data? Companies must implement governance measures to ensure these systems align with ethical standards. Without proactive oversight, organizations risk not only internal failures but also external regulatory backlash.
When I started looking at it more and more, it seems that there is deliberate disinformation around corporate brands. Although previously associated with political campaigns, the misuse of AI in creating and spreading false information about brands or products is becoming a significant issue. Deliberate misinformation campaigns, such as cloning an executive’s voice or faking corporate websites, can harm reputations and disrupt markets.
Peter: The capacity for such abuse highlights the urgent need for businesses to build defenses against disinformation. From tracking false claims to ensuring rapid correction, enterprises must be prepared for a new level of crisis management. The parallels to political disinformation are clear—corporate war rooms may soon become essential to managing these threats.
The Financial and Reputational Risks
Mark: Publicly traded companies are particularly vulnerable to the financial consequences of disinformation. False negative news can quickly lead to plummeting share prices, with bad actors profiting through short-selling strategies.
The declining trust in traditional media further complicates this issue. When misinformation spreads rapidly on social platforms, even credible news outlets may struggle to counteract its impact. Companies must therefore rethink their communication strategies and technological safeguards to maintain credibility in an environment rife with distrust.
Peter: I agree with Mark. We can’t close our eyes and plug our ears and pretend that this isn’t happening. Organizations must recognize the stakes—not only in terms of financial loss but also in the broader implications for jobs and market stability. As Mark noted, a quick search reveals the real and significant dangers businesses face today.
The path forward requires collaboration between industry leaders, regulators, and technology experts. Only through comprehensive policies, ethical safeguards, and vigilant oversight can businesses navigate the complexities of AI and its potential risks effectively.