F**k 2025 AI Predictions. Here is what will happen...
A 2025 Roadmap of Bold Possibilities. All getting us closer to Gen AI.
The transformative potential of artificial intelligence continues to expand rapidly. While some predictions remain cautious—emphasizing limitations, hype cycles, and the need for robust governance—there is tremendous room for optimism.
The coming years will bring new business models, innovative applications, and collaborative avenues that can benefit multiple industries, nations, and communities.
Below is my forward-looking synthesis of the 13 selected developments that will in one way or the other, happen in 2025. Each one is expanded with more detail, some even more than the others.
And I will definitely continue to explore and expand on all of the developments in the upcoming weeks. With your help of course:)
1. AGI Remains Elusive, But Pathways Are More Concrete
Prediction
Despite high-profile claims, True Artificial General Intelligence (AGI) will not materialize in 2025. Instead, incremental progress in narrow AI domains will yield increasingly competent systems for specialized tasks, ranging from scientific research and high-precision manufacturing to medical diagnostics and advanced data analysis.
Expansion & Rationale
Incremental Progress: Recent advancements show that narrow AI can outperform humans in very specific tasks (e.g., protein folding predictions), but the leap to a unified AGI with human-like adaptability remains significant.
AGI is complex. Achieving AGI requires breakthroughs in areas like contextual understanding, common-sense reasoning, and robust transfer learning, none of which seem imminent based on current research trajectories.
Interdisciplinary Collaboration: As AI tools spread across sectors—pharmaceuticals, aerospace, agriculture, and more—the synergy between domain experts and AI specialists will accelerate specialized solutions.
Opportunities
Domain-Specific Systems: By focusing on verticals such as energy optimization, healthcare, corporate education or telemedicine, innovators can build impactful products without attempting a “holy grail” of general intelligence.
Incremental Revenue Streams: Companies that gradually add features and capabilities to narrow AI products can create subscription-based models, offering continuous improvements tied to real-world performance gains.
My Favourite: One-Person Unicorns
Vertical Stream Agent Swarms: Imagine a framework where numerous specialized AI “micro-agents” each handle a specific, narrowly-defined task within an industry vertical—be it investment banking, media publishing, or marketing. These agents autonomously communicate with one another, passing data and insights seamlessly to complete complex workflows. A human operator (or small team) oversees the system, guiding strategic decisions but relying on the swarm for day-to-day execution. The end result is a lean but powerful “business in a box,” potentially enabling a single founder (or a minimal staff) to scale operations at a level once reserved for large organizations—thus opening up the possibility of the “1-person billion-dollar startup.”
Vertical agent swarms represent a middle path between narrow AI and an unattainable-in-the-near-term AGI. They harness the strengths of specialized AI modules, coordinated via robust communication protocols, under a guiding human hand. This approach can redefine entrepreneurship and business scaling, opening the door to “1-person unicorn” success stories while still requiring strategic oversight to ensure ethical, secure, and effective operations.
It will be expanded as a separate newsletter. Or reach out to me to know more now:)
Why it Matters?
Lower Operating Costs: Minimal headcount beyond the founding team.
Extreme Agility: Rapid pivots and continuous improvement cycles, as new agents or functionalities can be introduced without heavy organizational restructuring.
Fast Time-to-Market: Launching a new product or service can be as quick as “training and deploying” a new specialist agent (or repurposing existing ones).
Global Reach from Day One: Cloud-native AI agents can handle 24/7 operations, supporting a global customer base even from a one-person HQ.
References:
Oleksenko, R., et al. (2025). Developing the Concept of Digital Humanism as Human Interaction with Artificial Intelligence.
Why it Matters: Explores how current AI advancements aim to improve narrow AI applications rather than achieving AGI. Discusses digital humanism as a key focus for AI's near-term future.
Read the Paper
2. Regulation Gaps and Global Leadership
Prediction
The United States will continue to lag in enacting comprehensive AI regulations, often taking cues from Europe. However, Europe’s bureaucratic processes and already approved regulations will slow down actual on-the-ground AI progress. Meanwhile, parts of Asia—especially China, Singapore, and South Korea—will push ahead swiftly, leveraging flexible regulatory sandboxes.
Expansion & Rationale
Patchwork Regulations: With inconsistent frameworks at the federal, state, and international levels, companies face a complex landscape that, if not navigated carefully, could stifle innovation.
Bureaucratic Drag in Europe: While the EU often leads in privacy and data protection regulation, drafting and enacting directives can be protracted, leaving startups and general usage in limbo. For example recent EU AI Act that forbids different versions of AI systems to be offered to different users:)
Asia’s Fast-Track Approach: Several Asian governments embrace state-backed AI programs, actively encouraging foreign investment and local research. This can accelerate AI deployment in telecom, finance, and public services.
Opportunities
Compliance-as-a-Service: Startups offering regulatory consulting, real-time compliance monitoring, and “ethical AI audits” can fill a growing niche as companies seek to align with evolving rules.
Bridge Builders: Firms that facilitate secure data exchange between less-regulated and heavily-regulated regions stand to be invaluable, effectively acting as “translators” for global AI business.
: AI-Driven Jurisdictional Optimization
My Favourite: Regtech Hopping
AI-Driven Jurisdictional Optimization
A new frontier is emerging where advanced AI platforms advise on—if not fully automate—the process of setting up legal entities, optimizing tax strategies, and navigating diverse regulatory frameworks. This concept, dubbed “Regtech Hopping,” involves leveraging real-time data on global regulations to continually shift or augment a company’s operational footprint to the most favorable environment. While legitimate enterprises may use this for compliance and expansion, the same technology can tread into gray or black-hat territory—spanning gambling, gaming, betting, crypto, and even hacking—where regulatory arbitrage can be exploited at scale.“Regtech Hopping AI” highlights both the transformative potential and the peril of a hyper-connected, AI-driven world. By automating entity formation, optimizing compliance in different jurisdictions, and pivoting business models on a dime, these platforms can empower lean startups to operate like multinational conglomerates. Yet, when deployed for questionable or outright illegal ventures—especially in gambling, betting, crypto, and hacking—such systems challenge the very foundations of national and international regulatory frameworks. The result is a high-stakes cat-and-mouse game between tech innovation and global governance.
It will be expanded as a separate newsletter. Or reach out to me to know more now:)
Why it Matters?
Optimal Tax Structures: Suggesting offshore jurisdictions, special economic zones, or low-tax regions.
Simplified Licensing: Auto-filling forms and generating documentation for new corporate entities that meet local requirements instantly.
Instant Reconfiguration: If a certain jurisdiction tightens regulations, the AI can spin up or migrate operations to a more permissive locale, often within hours.
References:
Floridi, L., et al. (2018). AI4People: An ethical framework for a good AI society. Minds and Machines.
Why it Matters: Provides an ethical framework for AI governance, highlighting regulatory challenges in the U.S. and Europe.
Access StudySbailò, C. (2024). Governing Artificial Intelligence: Technological Leadership and Regulatory Challenges.
Why it Matters: Highlights the regulatory lag in Europe and the U.S. compared to proactive policies in Asia, emphasizing the competitive implications for AI governance.
Read the PaperLabanieh, M.F., et al. (2024). The Artificial Intelligence Readiness in ASEAN Countries.
Why it Matters: Analyzes Singapore’s leadership in AI policy frameworks, showcasing how regulatory sandboxes accelerate adoption.
Access Study
3. AI Agentic Swarms: Orchestration Beats the All-in-One Approach
Prediction
A single “super agent” that seamlessly manages everything—travel bookings, contract negotiations, and more—will remain out of reach. Instead, collections of specialized AI agents (or “swarms”) will operate under a central “manager agent,” each tackling a narrow domain with high efficiency.
Expansion & Rationale
Specialized Sub-Agents: Building one agent that excels at every task is highly complex. Instead, specialized agents can leverage focused training data to deliver superior performance in narrower domains (e.g., logistics, digital marketing, data analytics).
Dynamic Coordination: A central orchestrator can handle agent discovery, assign tasks, and evaluate outputs. Advances in multi-agent reinforcement learning and interoperability standards will play crucial roles.
Market Ecosystem: Over time, a marketplace of specialized sub-agents may emerge, each offering distinct features and pricing, not unlike today’s app stores—but for AI tasks.
Opportunities
Orchestration Frameworks: Entrepreneurs can develop “agent manager” platforms that integrate with multiple specialized agents, handling negotiations and resource allocation.
Micro-Services Economy: As these swarms evolve, smaller AI service providers can plug in specialized capabilities—from language translation to financial forecasting—opening up a new “micro-AI” services market.
Central Swarm Transaction System:
My Favourite: Central Swarm Transaction System
A High-Velocity, Dynamic Marketplace for AI Agents
As companies adopt more modular “agentic” architectures—dozens, hundreds, or even thousands of specialized AI services—coordinating them in real time becomes a logistical challenge. The “Central Swarm Transaction System” aims to solve that by enabling near-instant commerce, negotiation, and resource allocation across a network of internal and external AI services. Think of it as an ultra-high-speed auction house plus payment gateway, purpose-built for AI agents transacting among themselves.The Central Swarm Transaction System points to a future where autonomous AI-driven commerce extends far beyond the scope of human-mediated e-commerce platforms. Agents themselves (rather than people) will handle contracting, negotiation, and payments, creating an economy of services that trades at a rate and scale unimaginable today. Although existing technologies—like blockchain—offer partial parallels, the need for light-speed, low-fee, micro-transactions across potentially billions of agent interactions will demand entirely new infrastructure and protocols. Ultimately, as orchestration frameworks and multi-agent swarms advance, we can expect a self-sustaining, AI-native marketplace where specialized services compete, collaborate, and transact autonomously—ushering in a new era of high-velocity, decentralized commerce.
It will be expanded as a separate newsletter. Or reach out to me to know more now:)
Why it Matters?
Marketplace of Specialized AI
Independent developers can list niche AI services (e.g., a cutting-edge sentiment analyzer) without needing a massive sales operation—plugging directly into the swarm marketplace.
Larger enterprises might host their proprietary agents for internal tasks but also lease out capacity to external clients if it meets certain security or compliance criteria.
Smaller Vendors Compete on Equal Footing
With frictionless, pay-as-you-go transactions, smaller, high-quality agents can beat larger incumbents on speed or specialized expertise, capturing micro-niches in the AI economy.
New Pricing Models
AI services can charge per transaction, per token (in the case of language models), or even adopt dynamic surge pricing based on real-time supply and demand.
“Shadow Economy” Potential
A near-instant settlement layer could also be exploited for illicit activities if left unregulated, enabling black-market or gray-market AI transactions under pseudonymous or opaque identities.
References:
Stone, P., et al. (2016). Multi-Agent Systems: A Survey from a Machine Learning Perspective. Autonomous Agents and Multi-Agent Systems.
Why it Matters: Discusses the advantages of multi-agent systems for managing specialized tasks and their potential to outperform single super-agents.
Access ArticleArachchige, J.J., et al. (2025). Building Trust in Predictive Analytics: A Review.
Why it Matters: Discusses the growing need for transparency and orchestration in AI-driven analytics.
Read the Study
4. Humanoid Robotics and the Automation Frontier
Prediction
Despite progress in lifelike robotics, achieving cognitive flexibility and situational awareness on par with iconic fictional robots (e.g., “Rosie the Robot”) remains unlikely. Current progress will center on form factors and partial autonomy rather than holistic intelligence.
Expansion & Rationale
Physical vs. Cognitive Barriers: While motor control, object manipulation, and advanced sensors continue to improve, robots still struggle with tasks requiring nuanced judgment or emotional intelligence.
Niche Applications: Sectors like manufacturing, warehousing, and healthcare (e.g., surgical assistance robots) will see meaningful gains, but fully autonomous household companions remain far off.
Workforce Impact: Rather than replacing humans, these robots tend to augment human work—handling repetitive or hazardous tasks and relieving staffing pressures in labor-intensive industries.
Opportunities
Semi-Autonomous Systems: Startups can develop specialized robotic platforms for tasks like quality control, inventory management, or patient monitoring, reducing human labor needs.
Human-Robot Collaboration: Tools that facilitate safe, intuitive teamwork—like shared interfaces or VR/AR-assisted controls—will be in high demand as companies strive to optimize workflows.
My Favourite:
Autonomous Power Plants with AI Data Centers operated by Robots
Envision a fully automated complex where humanoid robots cultivate and harvest specialized crops for biogas conversion, powering on-site data centers that run advanced AI workloads. By isolating the entire cycle—from agriculture and energy production to computing—such a facility could operate with minimal human intervention, serving as a research and development “greenfield” for cutting-edge robotics, renewable energy, and AI.
In essence, Autonomous Power Plants with AI Data Centers represent a new frontier where robotics, renewable energy, and advanced computing converge. By leveraging humanoid robots in a controlled, human-free zone, these complexes could drastically reduce safety risks, achieve sustainable power generation, and provide scalable compute resources—all while serving as a living lab for the next generation of robotic and AI breakthroughs.
It will be expanded as a separate newsletter. Or reach out to me to know more now:)
Why It Matters
Sustainability: A fully autonomous biogas plant and data center can serve as a proof-of-concept for zero-carbon AI computing, marrying renewable energy and advanced robotics.
Technological Integration: This approach underscores the potential for co-locating different emerging technologies—robotics, agriculture, and cloud computing—under one holistic framework.
Blueprint for the Future: If successful, such complexes could pave the way for similar off-grid, autonomous ventures in mining, construction, or manufacturing, accelerating industrial innovation while mitigating ecological impacts.
References:
Kormushev, P., et al. (2013). Reinforcement Learning in Robotics.
Why it Matters: Explores advancements in robotics technology and its application in niche industries.
Access ArticleAmber, N. (2024). The Potential of AI in Transforming Healthcare Robotics.
Why it Matters: Focuses on robotics' impact in healthcare and industry, emphasizing their assistive potential.
Read the Paper
5. Workforce Evolution: Specialized Expertise Augments AI Outcomes
Prediction
Fears of mass unemployment will prove overstated. Less than 2% of roles are likely to vanish outright as AI increasingly handles routine tasks. Critical professions—radiology, law, finance—will still rely on human oversight for high-stakes interpretations.
Expansion & Rationale
Augmentation Over Replacement: Many “traditional” roles will evolve; for instance, accountants might become data validation specialists, and lawyers may focus on strategy while AI handles document analysis.
New Skill Requirements: Employers will increasingly seek workers adept at integrating AI tools. Prompt engineering, data curation, and ethical auditing will become sought-after competencies.
Ongoing Education: Continuous training programs—both online and institutional—will help workers adapt, easing societal anxiety around job displacement.
Opportunities
Upskilling Platforms: Education and training providers can partner with industry to create targeted AI-collaboration courses, certifications, and workshops.
Placement Services: As new hybrid roles emerge (e.g., “AI compliance manager,” “human-in-the-loop coordinator”), specialized staffing or recruiting agencies can match candidates to these niche positions.
My Favourite: Grandma AI with Supervision
Passing Down Knowledge to the “AI Generation” Picture a seasoned human expert—like the quintessential grandma in a family kitchen—overseeing and guiding a fledgling AI system. In many scenarios, AI can handle upwards of 99% of a given task, whether that’s generating social media content, drafting architectural concepts, or assembling a nutritionally balanced recipe. However, just as grandma imparts generational wisdom to a novice cook, a human “elder” in the field still imparts critical context, subtle know-how, and the intangible elements that algorithms simply can’t replicate (yet).
Why it Matters:
The “Grandma AI” paradigm illustrates a future where humans and AI coexist symbiotically, akin to a mentor-apprentice relationship. Far from rendering experts obsolete, these technologies amplify human capabilities by taking over the bulk of mundane tasks—while humans provide the final layer of quality control, domain-specific wisdom, and ethical judgment. In other words, the traditional notion of “senior teaching juniors” continues—but with AI as the newest recruit in the digital workforce.
It will be expanded as a separate newsletter. Or reach out to me to know more now:)
References:
Das, S. (2024). Adapting to the Age of Automation: Navigating AI's Impact on the Workforce.
Why it Matters: Highlights that AI will augment rather than replace jobs, emphasizing its potential in complementing human decision-making.
Read the StudyPraba, K., et al. (2025). Human Resource Management Practices in the Age of Industrial Automation.
Why it Matters: Explains how AI reshapes but does not eliminate job roles, particularly in high-skill industries.
Access the Chapterde Lucas Ancillo, A., et al. (2025). Towards Sustainable Business in the Automation Era.
Why it Matters: Examines how AI-driven transformations demand new workplace training and recruitment strategies.
Read the ArticleNartey, E.K. (2025). Generative AI's Influence on Employability in Higher Education.
Why it Matters: Explores how generative AI is shaping skill requirements, emphasizing lifelong learning.
Read the StudyHaritha, K.B., & Kuamar, S. (2025). Impact of Artificial Intelligence on Employment Opportunities in the Indian IT Job Market.
Why it Matters: Provides a case study on evolving skill demands in the IT sector, illustrating AI's dual impact on workforce roles.
Access the Chapter
6. Diverging Paths in Global AI Ambitions
Prediction
The U.S. will leverage AI for national security and geopolitical influence, while China transitions from “copy and monetize” to authentic innovation. Europe, facing regulatory inertia, could risk losing ground without more dynamic frameworks.
Expansion & Rationale
National Security Emphasis: U.S. agencies increasingly view AI as foundational to defence, cyber warfare, and intelligence-gathering. This outlook influences investment and R&D priorities.
China’s Shift to Original Research: Bolstered by high STEM enrollment and robust government funding, Chinese companies and labs aim to surpass the West in core AI breakthroughs, not just commercial applications.
Europe’s Conundrum: While leading on AI ethics and data privacy, Europe’s fragmented regulatory landscape may deter rapid deployment and large-scale experimentation.
Opportunities
Government-Funded Projects: Startups can pursue national grants in defense or public sector AI, especially in the U.S. and China. Dual-use technologies (civilian and military) are particularly attractive.
Cross-Border Collaboration: Organizations that enable secure data sharing, joint ventures, or co-funded research can unlock global partnerships, bridging knowledge gaps between regions.
My Favourite: Iron Curtain Copy Cats
A New Wave of Cross-Border Imitation and Adaptation
As geopolitical tensions escalate and AI becomes an increasingly strategic asset, nations are erecting their own “digital iron curtains,” limiting the free exchange of knowledge and technology across borders. Nevertheless, companies and innovators—seeking commercial advantage—may persist in replicating successful AI systems from one region to another. This “imitation under isolation” dynamic can simultaneously spur innovation in some areas (through reverse-engineering and localized adaptation) while undermining global cooperation and leading to fragmented, parallel AI ecosystems.The “Iron Curtain Copy Cats” phenomenon underscores a complex interplay between protectionist policies, intellectual property rights, and market-driven imperatives. Even as major AI powers clamp down on knowledge transfer, ambitious entrepreneurs and smaller nations will likely find ways to replicate proven AI models to meet local needs. This creates both opportunities for localized growth and dangers of balkanizing AI developments, ultimately shaping a world where parallel, semi-insular AI ecosystems co-exist—some thriving on imitation, others pushing the frontier of true innovation.
It will be expanded as a separate newsletter. Or reach out to me to know more now:)
Why it Matters? It is about opportunities arising:)
Adaptive Ecosystems vs. Full-Decoupling: While a complete global decoupling of AI ecosystems is improbable (due to continued economic interdependencies), partial fragmentation may persist, pushing companies to adapt existing solutions region by region.
Regulatory Patchwork: Nations may increasingly mandate local data storage, local IP ownership, or joint ventures for foreign tech firms—effectively forcing partial copycat scenarios.
Path to Original Innovation: Over time, some “copycat” ecosystems evolve into genuinely innovative ones—echoing past transformations in the global tech landscape (e.g., how Japan moved from “copy” to “innovate” post-war, or how some Chinese tech giants have transitioned from imitation to cutting-edge development).
References:
Gatto, A. (2024). The Crisis of the Liberal International Order and the U.S.-China Race for Supremacy in Semiconductors and Artificial Intelligence.
Why it Matters: Discusses how the U.S. and China use AI and semiconductors as strategic tools in their geopolitical rivalry, emphasizing China's innovation push post-"Made in China 2025."
Read the StudyHernanz Curiel, E. (2024). The Presence of Chinese Foreign Direct Investment in Strategic Sectors.
Why it Matters: Analyzes China’s ambitions in AI and strategic investments, contrasting them with European policies and challenges.
Access the ThesisThe National Artificial Intelligence Initiative Office (NAIIO). (2021). National AI Strategy of the U.S.
Why it Matters: Highlights the U.S.’s strategic focus on AI for defense and intelligence to maintain global leadership.
Access the Strategy
7. Autonomous Vehicles: Cautious but Expanding Footprint
Prediction
Fully driverless cars—requiring zero human oversight—will stay confined to specific “safe zone” regions, often with mild climates and well-maintained infrastructure. Human drivers will remain indispensable across most geographies.
Expansion & Rationale
Geographical Constraints: Early adoption is typically in places like Phoenix or San Francisco where road conditions, weather, and traffic laws favor autonomous testing.
Regulatory Hurdles: Local legislation, liability questions, and public sentiment all slow the rollout of fully autonomous fleets.
Mixed Traffic Realities: Integrating human-driven vehicles, cyclists, and pedestrians with driverless cars remains a core challenge for real-world autonomy.
Opportunities
Retrofit Kits & ADAS: Instead of building cars from scratch, startups can offer advanced driver-assistance features that can be installed on existing vehicles. This market is vast, potentially worth trillions.
Niche Transport Solutions: Autonomous shuttles or delivery pods in controlled environments—campuses, gated communities, industrial parks—are prime testing grounds for near-term profitability.
My Favourite: Mass Transit for an Autonomous Era
Closed Autonomous Hanging Railway Solutions:
Rather than grappling with the complexity of open-road autonomy—where vehicles must navigate unpredictable human drivers, cyclists, and constantly changing road conditions—a growing vision sees closed-loop railway systems as the ideal sandbox (or even proving ground) for next-generation, driverless transportation. By focusing on dedicated tracks—whether conventional rail, maglev, or futuristic hyperloops—developers can reduce the technological overhead (e.g., fewer sensors and algorithmic complexities), achieve higher safety margins, and more reliably scale autonomous operations. LEt’s build it in the air. 500 feet above anyone property it is a government affair, not the property owner business:)
Why it Matters?
Less Sensing Complexity:
In a closed loop—free of random pedestrians, cross-traffic, or ambiguous lane markings—vehicles can rely on more predictable signals, trackside sensors, and standardized communication protocols.
Fewer Edge Cases: The controlled environment shrinks the number of edge cases that an AI must handle, from erratic human drivers to unclear road signs.
Higher Safety Margins:
Dedicated right-of-way ensures minimal interference from external vehicles or pedestrians.
Consistency in track design, operational speeds, and station layouts facilitates robust testing and safer deployment cycles.
It will be expanded as a separate newsletter. Or reach out to me to know more now:)
In essence, new closed railway solutions—be they elevated, underground, or dedicated surface tracks—offer a unique chance to simplify and accelerate the rollout of autonomous transit. By reducing variables, leveraging modern engineering, and potentially bypassing messy right-of-way or property issues, these next-gen rail concepts could spearhead a safer, more efficient era of mass transportation—far sooner than fully autonomous cars might take over open roads.
References:
Warg, F., et al. (2024). Safety Lifecycle Enabling Continuous Deployment for Connected Automated Vehicles.
Why it Matters: Explores safety assurance frameworks and gradual performance improvements in autonomous vehicles.
Read the ReportShammi, L., & Shyni, C.E. (2024). Effective Detection and Prediction of Cyber Attacks in Autonomous Vehicles.
Why it Matters: Highlights the importance of robust cybersecurity in ensuring the reliability of autonomous systems.
Access Study
8. The Next AI Movement: From Foundation Models to New Architectures
Prediction
As global labs converge on similar large-language-model approaches, technical advantages for any one organization will diminish. Researchers will explore alternative architectures, such as search-based intelligence, test-time training, and transformer-free solutions.
Keep reading with a 7-day free trial
Subscribe to AI of the Coast: 7 Years to General AI to keep reading this post and get 7 days of free access to the full post archives.