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As 2025 approaches, the rapid pace of innovation in artificial intelligence continues to redefine the boundaries of what's possible. Industry experts Andy Sack and Adam Brotman share their predictions for the upcoming year, offering insights into top AI industry trends for 2025.
Here are seven key ways we can expect AI to evolve and develop for businesses in the consumer retail space in 2025.
"Google's dominance in search, the monopoly of search, will finally be pierced."
—Andy Sack
Consumers have already begun to see this trend with Google's Search Generative Experience, which now appears on most SERPs (Search Engine Result Pages). However, AI platforms are gaining ground with the introduction of major features such as Perplexity Shopping, and ChatGPT Search.
Marketers can already begin to see the effect on consumer shopping behavior, which typically originates with a Google or Amazon search. Using website traffic data from SEMrush & Ahrefs, we can see a nearly 20% drop in visits YoY to both Google and Amazon. In fact, ChatGPT overtakes Amazon in traffic for the first time.
So what does this mean for consumers and businesses in 2025? Rather than Googling or shopping on Amazon, everybody is just going to ask AI what products to buy, and the AI will recommend something perfect for every individual, every time. This shift means businesses must start asking themselves a critical question:
“How can I get ChatGPT to recommend me?”
The next prediction, that Elon Musk’s power play against Sam Altman and OpenAI will succeed in 2025, is one of the boldest trends shaping the future of the AI industry. This forecast intertwines Musk’s recent legal and political maneuvers with his growing influence in the AI sector, hinting at a convergence of technology, business, and politics that could dramatically reshape the competitive landscape.
The context: In 2024, OpenAI secured $6.6 billion in funding, increasing its valuation to approximately $157 billion. The investment required OpenAI to transition from a nonprofit to a for-profit entity within two years—a move that has attracted significant controversy.
Elon Musk, a co-founder of OpenAI who has since distanced himself from the organization, has openly opposed this transition, filing legal action to block it. Musk argues the shift violates OpenAI’s foundational mission of ensuring AI benefits humanity and raises ethical concerns about prioritizing profit. Musk also amended his legal action to accuse OpenAI and Microsoft of anticompetitive practices, alleging their partnership risks monopolizing the generative AI market.
However, Musk’s escalating influence isn’t confined to the boardroom. His growing alignment with political figures like Donald Trump signals a deeper power shift. In 2024, Trump’s re-election and Musk’s active support for Trump-aligned policies gave Musk increased leverage in regulatory and legislative arenas. Musk’s political maneuvers have drawn criticism for intertwining AI policy with partisan politics, but they’ve also bolstered his ability to challenge competitors like OpenAI.
Sack believes Musk’s political ties will amplify his influence:
“Musk’s growing political clout, especially through his alignment with Trump, is shaping the landscape in ways we haven’t seen before. This isn’t just about AI; it’s about who gets to dictate the rules of the game.”
By leveraging his political connections, Musk has filed legal challenges designed to stall OpenAI’s corporate transition, potentially halting its for-profit ambitions.
Building on these developments, Sack foresees Musk successfully blocking OpenAI’s transition in 2025, predicting,
“Musk will make the transfer of OpenAI’s corporate structure near impossible to execute, effectively halting its for-profit ambitions. This will have tremendous implications for the AI landscape, particularly among major players like Microsoft, Google, and OpenAI itself.”
If Musk prevails, it could disrupt the development and deployment of large language models (LLMs) and elevate Musk’s own AI company, xAI, to a dominant position.
The intersection of Musk’s AI ambitions and political activities underscores broader shifts in the industry:
As Musk’s legal and political strategies unfold in 2025, they will have far-reaching consequences for the AI industry. Beyond impacting OpenAI’s future, this conflict could set the tone for how technology, politics, and business intersect in the years to come. For Musk, the stakes extend beyond AI dominance to solidifying his role as one of the most influential figures in both tech and global politics.
"2025 is the year of Apple AI."
—Andy Sack
Apple is poised to make significant strides in artificial intelligence, with a particular focus on enhancing Siri's capabilities. This initiative includes the integration of OpenAI's ChatGPT-4 model, enabling Siri to provide more nuanced and comprehensive responses. The revamped Siri is promised to understand complex queries and seamlessly navigate between applications to perform multifaceted tasks. Indeed, we can confirm that Siri on the iPhone 16 correctly identified the genus of potted fern in our living room, a feat that no other app has been able to do thus far.
Apple's advancements in AI assistants also heats up the competitive landscape with fellow tech giants Google Home and Amazon Alexa, something we are sure consumers are eager to see. As Apple redefines the possibilities of AI in personal technology, consumer brands can also adapt to a new landscape shaped by smarter, more intuitive AI systems in the following ways:
When it comes to the world of voice assistants in 2025, will Apple secure AI market dominance? We predict, yes.
"AI is going to be the year of generative AI video."
—Andy Sack.
The evolution of generative AI has ushered in a new era of content creation, with models such as OpenAI's Sora now capable of reliably producing realistic videos from textual descriptions. This transformation is underpinned by the growing global AI video generator market, valued at approximately $554.9 million in 2023, and projected to grow at a compound annual growth rate (CAGR) of 19.9% from 2024 to 2030.
As generative AI tools become mainstream, brands will find themselves at the forefront of a new era in content creation—one that is faster, more personalized, and more cost-effective than ever before.
Brands will also begin using AI-generated video to build trust, improve user satisfaction, and drive long-term loyalty by generating videos tailored to specific customer needs or situations.
By leveraging generative AI to create enhanced product demos and localized content, brands can deliver exceptional customer experiences that increase engagement and acquisition, and reduce friction and churn. Incorporating generative AI video into isn’t just a competitive advantage—it will be a key driver of customer success and retention in the AI-driven marketplace of 2025.
"Because if you get AI video becoming a big deal in 2025, the downstream effect of that is what? It's AI influencers. And less expensive marketing."
—Adam Brotman
The influencer marketing industry has experienced exponential growth, with its global market size reaching $24 billion in 2024, a 13.7% increase from $21.1 billion in 2023. This surge reflects brands' increasing reliance on influencers to authentically connect with target audiences.
Amid this expansion, AI-generated influencers, or virtual influencers, have emerged as a significant trend. These computer-generated personas, powered by advancements in artificial intelligence and 3D modeling, engage audiences on social media platforms with lifelike appearances and distinct personalities. The global virtual influencer market was valued at approximately $6.06 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 40.8% from 2025 to 2030.
Brands are increasingly leveraging virtual influencers for marketing campaigns due to their unique advantages:
However, the rise of AI influencers presents challenges, including ethical concerns and the potential for deepfakes and misinformation. Brands that strategically navigate this shift can harness the benefits of virtual influencers while mitigating associated risks, positioning themselves at the future of social media marketing.
"You're gonna be managing employees and agents to get your work done. You're gonna be having them in your personal life and in your work life. And 2025 is the year of the agent at AI."
—Andy Sack
The emergence of agentic AI—autonomous systems capable of performing tasks and making decisions without human intervention—is poised to transform both personal and professional landscapes in 2025. The global autonomous AI and autonomous agents market was valued at approximately $4.8 billion in 2023 and is projected to reach $28.5 billion by 2028, growing at a compound annual growth rate (CAGR) of 43.0%.
You have likely already interacted with an AI agent in 2024 via customer service phone call or chat, a trend that will only increase in 2025. Along with the AI customer service agent, forward-thinking consumer brands will begin leveraging agentic AI throughout their sales processes.
As this technology becomes ubiquitous, brands that embrace agentic AI thoughtfully will set a new standard for customer engagement, operational efficiency, and personalized experiences. And by the end of 2025, managing AI agents will be as integral to business success as managing employees.
"If you could identify the top 100 companies you could invest in, that were AI First, in theory, they should outperform the market substantially."
—Adam Brotman
We believe 2025 will see the rise of dedicated investment vehicles targeting “AI-first” companies—businesses built on AI technology or driven by AI innovation. These firms, defined by their foundational reliance on AI for operations, decision-making, or product development, will begin to dominate conversations in financial markets and beyond.
Brotman even predicts that 2025 will introduce formalized methods, such as an "AI 100 Index," to identify and invest in the top AI-first companies.Historical data suggests that companies integrating transformative technologies early often see outsized growth and investor interest. AI-first companies are positioned for similar trajectories as studies show a 40–50% improvement in productivity, quality, and quantity among organizations actively using AI compared to those that don’t.
Examples include:
2025 will likely mark a pivotal moment in how markets evaluate and invest in innovation. The emergence of tools like an "AI 100 Index" will provide clarity for investors and spotlight the transformative impact of AI-first companies. For those positioned to embrace this trend—whether as investors or as businesses adopting AI-first strategies—the opportunities are boundless.
From the revolution in search and shopping experiences to the emergence of AI-generated video, synthetic influencers, and autonomous agents, we're witnessing the early stages of a profound digital metamorphosis. Businesses that adapt, innovate, and strategically integrate AI will not just survive—they'll thrive in this new ecosystem.
For consumers, professionals, and businesses alike, the message is clear: The AI of 2025 is not just a tool, but a transformative force that will redefine possibilities across every sector. Those who approach this revolution with curiosity, adaptability, and a strategic mindset will be best positioned to harness its incredible potential.
