Top Technology Trends in 2024 and 2025. Part 2

The Future of Technology: AI, Metaverse, and Governance in 2025

Continuation of The Rise of Cloud Services and Agentic AI: A Shift in Technology and Business

Personalization as a Key to Consumer Engagement

Peter: I believe the reality of advanced analytics and personalization is here and improving. Tools today go far beyond basic personalization like Amazon’s product recommendations, which are now an expectation rather than a novelty. Modern analytics anticipate purchases based on customer lifecycle, income, and personal circumstances, offering insights that drive consumer satisfaction and business success.

While privacy concerns exist, consumers appreciate when companies understand their purchase history and predict future needs. Businesses that leverage analytics for personalized upselling achieve better results, provided the algorithms are accurate and the technology effective. The challenge lies in deploying these tools in ways that yield tangible benefits.

Mark: This has been promised for years, but many companies seem overwhelmed by data. They struggle to personalize recommendations quickly and meaningfully. A classic case study is the Target incident from years ago when the company sent baby product offers to a household based on purchase history, much to the surprise of a teenage girl’s father—who later discovered the data was correct.

Despite such advancements, personalization in practice often falls short. For instance, my supermarket has a record of all my purchases, yet it still sends offers for products I’ll never buy, like meat. This disconnect highlights a gap between the potential and the current reality. However, AI might now tip the balance. It can automate the process of analyzing purchasing histories, identifying patterns, and creating real-time personalized offers.

We’re finally at a point where meaningful personalization could become more common.

Peter: Exactly. Personalization plays a critical role in maintaining strong relationships between consumers and enterprises. Companies need to focus on collecting the right data rather than being overwhelmed by sheer volume. It’s about targeting consumers effectively using the most relevant data points.

Mark: Another aspect often overlooked is the use of external data. It’s one thing for a supermarket to recommend products based on past purchases, but correlating this with external factors like local events or weather can add significant value. For instance, identifying if customers buy more beer during football games could lead to better-targeted promotions.

Such precision in customer behavior analysis will drive analytics to create greater value. But security remains a challenge. With the advent of quantum cryptography, networks are increasingly vulnerable. Hackers can steal encrypted data now and decrypt it later as technology advances. Analysts predict that by 2029, securing networks with current technology will be nearly impossible. This raises significant concerns for industries managing sensitive data, such as healthcare and government.

The Reputational Impact of Cybersecurity Failures

Peter: The frequency of data breaches is alarming. What used to be a rare, high-profile event is now a daily occurrence. Consumers expect their data to be secure, yet confidence in organizations’ ability to protect it is dwindling. Recently, an InfoSec expert suggested that everyone should assume their data has already been compromised and exists on the dark web.

This grim reality underscores the urgent need for innovation—not just financial investment but also time and resources. Without proactive measures, the risks to public security and infrastructure could be catastrophic.

Mark: We’ve already seen the real-world impact of these vulnerabilities. For instance, a major hospital group in the U.S. was paralyzed by a ransomware attack, forcing them to revert to paper-based systems. I’ve experienced similar issues in Brazil, where a health service hack left critical apps inaccessible, complicating tasks like proving vaccination status.

These incidents highlight the far-reaching consequences of data breaches, from consumer inconvenience to reputational damage for companies. Securing customer information must become a top priority at the boardroom level.

Peter: AI will likely play a significant role in driving the innovation needed to address these challenges. While the metaverse has been relatively quiet recently, it still appeals to a niche audience and offers opportunities for growth and enhanced functionality. Regarding devices, we may not see entirely new types, but current ones, like smartphones and tablets, will become more powerful, incorporating advanced AI capabilities.

Mark: I believe augmented reality glasses will make a noticeable return next year. Although Google Glass failed a decade ago due to privacy concerns, upcoming products from Apple and Samsung seem poised for more practical, professional applications. For instance, logistics companies could use these devices for real-time navigation and route optimization, or warehouse workers could benefit from hands-free information access.

While these technologies might initially be confined to enterprise settings, they could eventually transition into everyday life. It will, however, take time for this shift to occur.

Virtual Environments and the Metaverse in Enterprise Applications

Mark: We’re entering a period where the metaverse might redefine how we approach training and collaboration. Imagine complex scenarios, like training a deep-sea diver, executed in a fully virtual environment. Beyond training, I foresee virtual office setups becoming commonplace. These environments could allow colleagues to interact in real-time, fostering a sense of casual yet productive engagement, almost like bumping into someone in the hallway but in a virtual space.

While the idea of the metaverse as a leisure space might have been overstated in recent years, its business applications are beginning to shine.

Peter: It’s fascinating how the trajectory of these technologies can diverge from initial expectations. While the metaverse might not have resonated with consumers as anticipated, niche business cases are proving its value. Practical applications are emerging, much like with earlier innovations such as Google Glass. Though initially dismissed, such technologies often find their footing in version 2.0. The metaverse’s potential in specific sectors might pave the way for broader adoption.

Mark: Agentic AI—AI systems capable of acting autonomously in certain contexts—could become a cornerstone of our daily lives. If consumers adapt to smarter digital assistants like Siri and Alexa, enterprises will need to keep pace. Imagine digital assistants handling customer service queries directly with corporate systems. For instance, instead of personally contacting a logistics company, your assistant could manage the inquiry autonomously, communicating seamlessly with the company’s internal AI systems.

This development has the potential to revolutionize both consumer and enterprise interactions, moving us far beyond basic smart speakers at home.

Optimism for 2025: Key Trends to Watch

Peter: Reflecting on 2024, it’s clear it was a year of significant disruption—environmentally, geopolitically, and commercially. Yet, 2025 offers a blank canvas filled with promise. Artificial intelligence, analytics platforms, and innovations in cybersecurity are setting the stage for meaningful progress.

I sense cautious optimism among business leaders. With inflation stabilizing in key markets and consumer confidence improving, we might see increased investments in critical technologies. However, governance, especially in AI, will be pivotal. Ethical and responsible use of AI must remain a priority, ensuring the technology aligns with societal norms and expectations.

Mark: I agree. There’s undeniable growth in sectors like AI, cloud computing, and data centers. This is an exciting time for those in IT, with double-digit growth rates signaling robust opportunities. However, as Peter noted, the private sector often outpaces regulatory frameworks. This imbalance can lead to societal pushback if the innovations stray too far from what is deemed acceptable.

For instance, consider AI in hiring. While it may be technically feasible to replace HR functions with AI, ethical considerations and governance must be addressed. Businesses need to ensure that technological advancements are balanced with societal values and regulations.