IBM’s report reveals five major AI trends reshaping businesses by 2025, including retraining employees and modernizing IT systems.
1. Agentic AI to Revolutionize Operations
IBM’s report highlights the increasing role of Agentic AI, systems that autonomously perform tasks on behalf of employees. This evolution demands reskilling, as 35% of the global workforce needs upskilling to adapt. Rather than replacing jobs, AI will enhance human efficiency, creating a new model for collaboration.
2. Growing Challenge of Technical Debt
Despite efforts to address it, technical debt remains a significant barrier for businesses. More than half of leaders point to this issue as an obstacle, with only 25% of IT infrastructures ready for widespread AI adoption. The key to success lies in modernizing IT systems to create flexible architectures capable of supporting AI development.
3. AI to Reshape Company Location Strategies
As AI’s influence grows, so does its impact on business location strategies. With the demand for talent, data ecosystems, and scalable infrastructure, companies are relocating to capitalize on AI-related benefits. By 2026, nearly all business leaders expect AI to drive significant changes in their location strategies.
4. AI Budgeting Shifts to Self-Funding Models
The surge in AI adoption has disrupted traditional IT budgeting. One in three companies redirected funds from other IT initiatives to AI development. In the coming years, AI is expected to become at least partially self-financing, with businesses prioritizing high-return projects and leveraging open-source solutions.
5. AI-Driven Innovations Demand Business Model Transformation
AI is accelerating product and service innovations. However, many companies are still tied to outdated business models, hindering their ability to fully leverage these opportunities. Business leaders acknowledge the need for a fundamental transformation of organizational strategies to keep pace with AI-driven innovation.