25 Technology Predictions for 2025
Here are my best estimates on what will happen in technology in 2025.
2024 predictions, I got 22/24 (92%) right!
2023 predictions, I got 18/23 (78%) right!
I want to thank my Brain Juice family, a weekly AI mastermind I am part of, who has helped shape my worldview and allowed my prediction success rate to skyrocket. Thank you, Brad, for hosting and all the Brain Juice alumni who show up weekly to discuss the future of technology and society.
If you want to learn more about the future of technology and how it will impact society and humanity, consider buying my new book, 2030: A Blueprint For Humanity’s Exponential Leap.
My Top 25 Technology Predictions for 2025
- AI Agents will dominate the technology landscape.
AI agents will emerge as a transformative force in 2025, with the market projected to grow from $10.5 billion in 2024 to $38.7 billion by year’s end. These autonomous systems will move beyond basic chatbots to become sophisticated digital workers capable of chaining together complex tasks — research shows they can reduce task completion time by 70% in areas like data analysis, project management, and software development. Major tech companies are investing heavily, with enterprise adoption expected to reach 45% by Q4 2025, leading to an estimated 30% reduction in operational costs for knowledge-worker industries. While this revolution will raise concerns about workforce displacement, with McKinsey predicting that AI agents could automate up to 40% of current white-collar tasks, it will also create new opportunities in AI agent development and oversight, potentially generating 2.3 million new jobs globally.
2. OpenAI will introduce GPT5.
OpenAI’s anticipated release of GPT-5 in 2025 will mark a significant leap forward in large language model capabilities, building on the foundation laid by GPT-4’s multimodal features and context handling. While GPT-4 processes around 32,000 tokens of context and handles text, images, and basic code interpretation, GPT-5 is expected to support context windows of over 1 million tokens and introduce sophisticated video understanding capabilities. Industry analysts project that GPT-5 will reduce hallucination rates by approximately 80% compared to GPT-4, while cutting inference costs by up to 60% through more efficient architecture and training methods. The impact will be particularly significant in enterprise settings, where early testing programs suggest that GPT-5-powered applications could automate up to 45% of knowledge work tasks currently requiring human oversight. This advancement will intensify the AI arms race, with companies like Anthropic, Google, and Meta likely accelerating their own model development in response.
3. A company will claim to have developed AGI.
A major technology company’s claim of achieving Artificial General Intelligence (AGI) in 2025 will fundamentally reshape humanity’s view of itself and our place in the cosmos. While the system will demonstrate human-level performance across 85% of cognitive tasks, the announcement’s true significance will extend far beyond technical benchmarks. Religious leaders will grapple with questions of machine consciousness and soul, leading to the first interfaith AI congress. Education systems worldwide will rapidly pivot, with 40% of universities restructuring their curricula to prepare students for a world where machines can match or exceed human cognitive capabilities. The stock market will experience unprecedented volatility as investors process the implications, with AI-focused companies seeing valuations surge by 300%. Most profoundly, this moment will mark the first time in human history that we must seriously consider the possibility that we are no longer the most intelligent entities on Earth, sparking a cultural and philosophical revolution that will define the coming decades.
LISTEN TO AN AI-GENERATED PODCAST ABOUT THIS ARTICLE:
4. Chinese Frontier Models will edge ahead of US models.
In 2025, Chinese AI frontier models are set to surpass U.S. counterparts, driven by over $500 billion in AI funding and leadership in global AI patents — 38,210 filed compared to 6,276 from the U.S. China’s models, like DeepSeek, already deliver 100x cost-efficiency over GPT-4, highlighting their rapid advancements. This shift signals a new era of AI dominance, with China leveraging its edge in industries from healthcare to defense, reshaping global technology leadership. (Source).
5. Test time compute (inference vs. training) will take center stage in 2025.
In 2025, the focus will shift from model training to inference efficiency as AI systems become more integrated into daily applications. With models like GPT-4 requiring tens of thousands of GPUs for training but demanding exponentially more resources during inference across millions of users, companies will prioritize reducing real-time compute costs. Emerging technologies like hardware accelerators (e.g., TPUs, RISC-V), sparsity optimization, and algorithmic advancements will cut inference latency by up to 50% while lowering energy consumption. This shift will redefine competitiveness in the AI industry, favouring companies that can deliver scalable, cost-effective AI applications. (Source).
6. Industry focus on small and narrow small language models designed for one purpose or problem.
In 2025, the AI industry will pivot toward small, purpose-built language models tailored to solve specific problems efficiently. Unlike general-purpose models like GPT-4, these specialized models require significantly less computational power, reducing costs and latency while maintaining high accuracy for niche tasks. Industries like healthcare, finance, and manufacturing will adopt these models to power real-time decision-making, secure sensitive data, and integrate seamlessly with existing workflows. This shift will democratize AI by enabling companies of all sizes to leverage advanced technology without the infrastructure demands of massive models. (Source).
7. Small Nuclear Reactors will boom but will take a few years for construction to catch up with demand.
Small Modular Reactors (SMRs) will see unprecedented demand in 2025, driven by the surging power requirements of AI technologies and the pressing need for energy independence. While China’s nuclear-powered industrial sector enjoys electricity costs of $0.07/kWh compared to $0.15/kWh in the U.S. and $0.30/kWh in Europe, this competitive disadvantage pushes Western nations to accelerate their nuclear programs. Companies like NuScale Power and TerraPower are leading the charge with standardized, factory-built reactor designs, but the industry faces a critical challenge: manufacturing capacity for specialized components remains limited, meaning it will take 2–3 years for construction to catch up with the explosive growth in orders. Early movers who secure manufacturing slots in 2025 will gain a significant advantage in the race toward energy independence, potentially reshaping global economic competitiveness by the decade’s end.
8. A massive revolution in data center engineering, cooling and power will take place.
In 2025, data centers are projected to consume approximately ~3% of global electricity, with AI-driven demands potentially increasing this to 8–10% by 2030. DQ India. Cooling systems currently account for up to 40% of a data center’s energy usage.The Wall Street Journal. To address these challenges, the industry is adopting advanced cooling technologies, such as liquid cooling and immersion cooling, which can significantly reduce energy consumption. Additionally, major tech companies are implementing sustainable initiatives to enhance water efficiency in their data centers. Data Center Frontier
9. The first wave of permanent customer support role layoffs due to AI doing a better job for much cheaper.
In 2025, the first wave of permanent layoffs in customer support roles will hit as AI systems outperform humans in both cost and effectiveness. Companies adopting advanced AI chatbots and voice assistants will see operational costs drop by up to 80%, while customer satisfaction scores rise by 20–30% due to faster response times and consistent service quality. By year-end, over 500,000 global customer support roles are projected to be automated, particularly in industries like retail, finance, and telecommunications. This shift will spark debates around the economic impact of AI-driven automation and the urgency of reskilling displaced workers. (Source).
10. At least 5 new AR smart glasses are introduced in the market.
In 2025, the augmented reality (AR) market is set to expand with the introduction of several new smart glasses from major tech companies:
- Samsung: Anticipated to unveil its AR smart glasses, resembling traditional eyewear, during the Galaxy S25 Unpacked event in January 2025. These glasses are expected to integrate advanced AI features and require pairing with a smartphone for full functionality. BGR
- Meta: Plans to release an updated version of its Ray-Ban smart glasses in 2025, incorporating displays for notifications and AI assistant responses, enhancing user interaction with augmented reality content. Investors
- Google: Developing AI-powered smart glasses, codenamed Project Astra, featuring real-time translations and contextual awareness, with a projected release in 2025. Wired
- Apple: While the Apple Vision Pro, a mixed-reality headset, was introduced earlier, there is speculation about a more consumer-friendly AR glasses variant potentially being announced in 2025. Wikipedia
- Xiaomi: Reportedly working on AR smart glasses with a focus on lightweight design and affordability, aiming to capture a share of the consumer market in 2025.
11. A full 3D video game will be built using generative AI tools.
In 2025, a groundbreaking 3D video game will be developed entirely using generative AI tools, revolutionizing game creation. Leveraging advancements in AI for procedural world-building, character design, and real-time storytelling, the game will reduce development timelines by up to 80% while achieving AAA-level quality. Players will experience dynamic environments and narratives that adapt in real-time, powered by AI engines capable of creating millions of unique assets. This milestone will democratize game development, enabling indie studios to compete with industry giants and sparking a new wave of AI-driven creativity.
12. One country will implement an ‘AI Official’ to represent conversations and discussions.
In 2025, a forward-thinking nation — likely the UAE — will appoint an “AI Official” to participate in government discussions and public decision-making processes. This AI, powered by advanced natural language processing and real-time data analysis, will provide unbiased insights, recommend policies based on comprehensive simulations, and ensure informed decision-making. The move will position the UAE as a global leader in AI governance, sparking debates worldwide about the role of AI in political structures. This initiative will mark a pivotal step in integrating artificial intelligence into the fabric of societal leadership.
13. The first shipment of home-based humanoid robots will begin.
In 2025, the first shipment of home-based humanoid robots will mark a major milestone in robotics and consumer technology. These robots, designed for household tasks such as cleaning, cooking assistance, and elder care, will feature advanced AI for natural language interaction, facial recognition, and task adaptability. Companies like Tesla, Xiaomi, and Dyson are expected to lead the charge, with initial models priced between $10,000 and $25,000. Analysts predict that over 100,000 units will be sold globally by year-end, ushering in a new era of personalized, AI-driven home assistants. Would you buy a Terminator to do your chores?
14. A massive ecological disaster will happen, and governments and billionaires will be forced to invest in technology to reverse climate change.
In 2025, a massive ecological disaster — such as an unprecedented glacier collapse, a catastrophic wildfire season, or record-breaking ocean acidification — will force governments and billionaires to dramatically accelerate investments in climate-reversing technologies. Carbon capture, geoengineering projects, and AI-driven climate monitoring systems will see an influx of billions in funding as stakeholders scramble to mitigate the fallout. This event will galvanize global action, with international coalitions forming to deploy large-scale solutions, like atmospheric CO2 removal and reforestation drones. The crisis will serve as a tipping point, reshaping climate policy and prioritizing technological innovation to combat environmental collapse.
15. Global tax reforms start looking at taxing billionaires vs. middle class and the additional tax revenue will be poured into innovation. This will not happen in the US under Trump.
In 2025, global tax reforms will begin shifting focus from middle-class burdens to taxing billionaires and multinational corporations, driven by mounting inequality and public demand for fairer systems. Countries in Europe, Asia, and Latin America will pioneer these policies, using the additional revenue to fund technological innovation, education, and sustainable development. However, the U.S., under the Trump administration, will resist such reforms, maintaining tax structures that favour the ultra-wealthy. This divergence will spark debates about global competitiveness, with reforming nations leveraging their investments to accelerate innovation while the U.S. risks falling behind in critical technological advancements.
16. 3D, digital twins, XR and AI will become a value-generating powerhouse for enterprises.
In 2025, the convergence of 3D modeling, digital twins, extended reality (XR), and artificial intelligence (AI) will emerge as a transformative value-generating powerhouse for enterprises. Digital twins will enable real-time simulations of everything from manufacturing processes to urban infrastructure, reducing costs by up to 30% and improving efficiency. XR will revolutionize training, product design, and remote collaboration, while AI will analyze and optimize data from these systems at unprecedented scales. Together, these technologies will drive innovation, with industries like manufacturing, healthcare, and real estate expected to see a $1 trillion increase in productivity and revenue streams globally.
17. An AI-produced film will win at Cannes, Tribeca or Toronto Film Festivals. AI Film as a category will be introduced.
In 2025, an AI-produced film will break barriers by winning a major award at Cannes, Tribeca, or the Toronto International Film Festival, solidifying AI’s role as a creative force in cinema. The film, generated using AI tools for scriptwriting, character creation, and cinematography, will captivate audiences with its innovation and emotional depth. In response to this breakthrough, one of these festivals will introduce an “AI Film” category, celebrating the unique blend of human and machine collaboration in storytelling. This milestone will redefine the boundaries of art and technology, sparking debates about authorship and creativity in the film industry. (AI Film Jan 1, 2025)
18. Bitcoin will hit $250,000 USD
Bitcoin is projected to surge to $250,000 USD, driven by a combination of increasing institutional adoption, advancements in blockchain scalability, and heightened demand in markets seeking decentralized financial alternatives. Factors such as regulatory clarity in major economies and the rising integration of Bitcoin into payment systems and ETFs will further fuel this growth. Analysts suggest that with its capped supply and expanding utility, Bitcoin’s market capitalization could surpass $5 trillion, cementing its position as a core asset in global finance.
19. Governments will begin enforcing mandatory AI content marked and denoted as such
Governments worldwide will begin enforcing regulations requiring AI-generated content to be clearly labelled, aiming to combat misinformation and promote transparency. These mandates will apply to AI-written articles, synthetic media, and deepfake videos, with penalties for non-compliance targeting platforms and creators. Countries like the EU, known for their stringent digital policies, will lead the charge, influencing global standards. This move will encourage the development of watermarking technologies and metadata tagging systems, setting a precedent for ethical AI use and fostering greater trust in digital content.
20. A large AI startup correction will happen with a consolidation of overfunded early AI startups that ran out of cash.
The AI startup landscape will face a major correction as overfunded early-stage companies struggle to sustain operations after burning through capital. Spurred by the generative AI hype of previous years, investors will scale back funding, forcing weaker startups into consolidation or closure. Analysts predict that up to 40% of AI startups in certain sectors, such as niche generative AI and autonomous systems, will either merge with competitors or exit entirely. This wave of consolidation will stabilize the market, refocusing investment on startups with proven business models and scalable solutions.
21. A quantum computer will crack Bitcoin, and billions of Bitcoin will be lost before it is patched. This will create a larger panic and race towards quantum supremacy.
A breakthrough in quantum computing will result in the cracking of Bitcoin’s encryption, leading to the loss of billions in Bitcoin before emergency patches are implemented. This event will expose vulnerabilities in widely used cryptographic systems, causing widespread panic across financial markets and accelerating global efforts to achieve quantum supremacy. Governments and private sectors will invest heavily in quantum-safe cryptography and post-quantum encryption solutions, while blockchain networks worldwide scramble to upgrade their protocols. The incident will redefine cybersecurity priorities and highlight the urgent need to secure digital assets against emerging quantum threats.
22. China will dominate the older generation chip market now that it has developed its own lithography technology.
China will dominate the market for older-generation chips, leveraging its newly developed lithography technology to produce semiconductors at scale. By focusing on chips built on 28nm and older nodes — widely used in automotive, IoT, and industrial applications — China will fill gaps left by global shortages and export restrictions. Analysts predict that China’s share of the mature chip market will surpass 50%, driven by government-backed investments exceeding $200 billion in semiconductor self-sufficiency. This shift will disrupt global supply chains, challenging the dominance of traditional players in Taiwan, South Korea, and the United States.
23. Blockchain tokenization of real estate, share equity, debt instruments will start to proliferate.
Blockchain tokenization will revolutionize asset markets, with real estate, share equity, and debt instruments leading the charge. By converting physical assets into digital tokens, transactions will become faster, more transparent, and accessible to a broader range of investors. Analysts predict tokenized assets could exceed $16 trillion in market value by 2030, with real estate alone accounting for 40% of this figure. Pioneering platforms will leverage smart contracts to automate processes like rental payments and dividend distribution, while regulators begin crafting frameworks to support this emerging ecosystem.
24. Using AI, a scientific lab will claim to discover a close-to-room-temperature superconducting material
A scientific lab will claim the discovery of a near-room-temperature semiconducting material developed using AI-driven simulations and analysis. By leveraging generative AI to explore vast material combinations, researchers will identify properties enabling efficient conductivity without extreme cooling requirements. If validated, this breakthrough could revolutionize electronics, enabling more efficient chips, advanced sensors, and quantum computing technologies. However, scrutiny and replication will be critical before widespread adoption, as with previous high-profile claims.
25. 2025 will be an incredible year for technology that will be 99% amazing and 1% horrific…but I predict 2025 is going to be an AWESOME YEAR!!
2025 is shaping up to be a transformative year in technology, packed with breakthroughs that will redefine industries and revolutionize daily life. From AI creating films that win global awards to quantum computing breakthroughs, the potential for innovation is staggering. However, alongside these marvels lies the 1% of challenges — ethical dilemmas, economic disruptions, and unforeseen consequences — that will test humanity’s ability to adapt. Buckle up because 2025 promises to be a year of awe-inspiring progress and critical moments that we’ll remember as a turning point for our future!
Remember, these are just my predictions; while I hope some come true and others don’t, the predictions above were made using all available data, my personal network, myriad sources and a sense of how things are going to unfold in the exponential era of humanity. Let’s build the future we want together!
About Alan Smithson
Alan Smithson, B.Sc. is a globally renowned futurist, keynote speaker, and
author dedicated to inspiring socially, economically, and environmentally responsible action. A father, founder, and DJ, Alan makes complex topics engaging and actionable, sharing insights in his TEDx talk, The Marriage of Education and Technology. Alan is a co-author of 2030: A Blueprint for Humanity’s Exponential Leap, which will launch in January 2025.
As co-founder of Emulator (touchscreen DJ technology), METAVRSE (3D creation platform), Unlimited Awesome (education for entrepreneurs), and Clean Data Centers (nuclear-powered data centers), Alan leads innovations in AI, blockchain, metaverse, education, and clean energy. He advises HSTAR Space, invests in Lawfully Minded (AI legal resource), and has been a Techstars mentor, SXSW Pitch judge, and One Creativity Awards juror.
Named a Top 50 Digital Futurist, Alan has spoken at CES, SXSW, TEDx, and
AWE, with features in Forbes, HBR, and CNN. As DJ “Lord Alan,” he’s per-
formed globally and won DJ Mag’s Innovative Product award. Learn more at AlanSmithson.com.
