AI, Security, and Transformation: What to Expect in 2025

As we approach 2025, thought leaders across industries are predicting significant shifts that will reshape the way we approach technology, security, AI, and digital infrastructure. This year promises to bring more than just incremental changes; it will mark a turning point for businesses that need to adapt to emerging challenges to stay competitive. Here are some key predictions shaping the future.

One of the most urgent issues in cybersecurity is the growing frequency of identity compromises and privilege escalation. Cybercriminals continue to exploit cloud environments and manipulate user permissions, forcing organizations to rethink their security frameworks. According to Morey Haber, Chief Security Advisor at BeyondTrust, by 2025, businesses will place a stronger focus on the “Paths to Privilege™” — the pathways that allow attackers to gain deeper access within systems. This will require a comprehensive review of trust relationships, configurations, and entitlement processes, ensuring that these paths are secured to prevent lateral movement by attackers.

At the same time, quantum computing poses an emerging risk to digital security. Experts predict that by the early 2030s, quantum computers could easily break traditional encryption methods, like RSA, which would have taken a digital machine trillions of years to crack. Joe Dunleavy, Global SVP & Head of AI Pod at Endava, suggests that organizations in critical sectors like government and finance will begin exploring post-quantum cryptography to safeguard their data. This shift will prompt regulatory bodies to introduce new standards, laying the groundwork for businesses to adapt to a post-quantum reality.

AI will continue to shape business operations, with the rise of agentic AI taking center stage. These systems will not just automate tasks; they will act as intelligent partners that proactively handle complex workflows, especially in highly regulated sectors such as healthcare, finance, and energy. Joe Dunleavy envisions AI becoming an essential part of business operations by 2025, working alongside human teams to improve efficiency while maintaining transparency and compliance—critical components in industries with strict regulatory requirements.

The increasing focus on data privacy and compliance will also become a priority for businesses. With regulations such as GDPR and CCPA becoming more widespread, organizations will feel the pressure to safeguard sensitive information. As Itay Glick, VP of Products at OPSWAT, points out, failing to comply with data protection laws could result in significant financial penalties, as seen in the case of Meta’s €1.2 billion fine. This will lead many companies to shift from cloud-based solutions to on-premises systems to have more control over their data and reduce the risks associated with third-party vulnerabilities.

The pace of AI investment, while strong in recent years, is expected to slow down in 2025. As organizations evaluate the ROI of their AI projects, many will become more selective about their investments. Omar Akar, Regional VP for META & CEE at Pure Storage, predicts that the hype around AI will start to recede as companies seek more practical applications that deliver measurable value. This will lead to a shift away from generic AI solutions to more tailored, customizable systems. The adoption of retrieval-augmented generation (RAG) will become a standard approach, helping businesses fine-tune their AI models and achieve better outcomes.

While AI systems will become more prevalent, cybersecurity strategies will remain grounded in core principles. Richard Seiersen, Chief Risk Technology Officer at Qualys, reminds us that the fundamentals of security—such as securing infrastructure, software pipelines, and supply chains—still apply to AI. Businesses will need to integrate AI securely into their existing frameworks, addressing potential vulnerabilities such as spoofing, tampering, and privilege escalation. Developing proactive risk management strategies and security measures will remain crucial as AI continues to evolve.

In addition to AI’s growing presence, organizations will need to focus on the physical infrastructure that supports these technologies. Stefan Leichenauer, VP of Engineering at SandboxAQ, notes that custom-built data centers and high-performance hardware will become critical for businesses looking to scale AI applications. The Middle East, for example, has already started investing in AI-supportive infrastructure, with initiatives like Dubai’s AI Lab aiming to provide the foundation for AI-driven growth. These investments will be necessary to meet the demands of large-scale AI systems and position businesses for success.

Data quality will continue to be a central factor in AI project success. Cathy Mauzaize, President of EMEA at ServiceNow, highlights that AI initiatives often fail when based on inaccurate or unclean data. In 2025, businesses will focus on solving real-world problems with high-quality data, moving from proof-of-concept to proof-of-value. Transparency around how data is used and governed will become essential as organizations work to build trust with customers and stakeholders.

As companies continue to modernize their operations, the focus will shift toward building stronger digital capabilities. As Asanka Abeysinghe, CTO at WSO2, explains, businesses will prioritize technologies like API management, integration, and identity and access management to enhance both security and operational efficiency. Small language models (SLMs) and agentic AI will also play a critical role in creating more autonomous systems, while hybrid cloud strategies will allow businesses to maintain flexibility across on-premises and cloud environments.

Finally, personalization will become even more integral to the user experience in 2025. Dinesh Varadharajan, Chief Product Officer at Kissflow, emphasizes that natural language-driven interactions will transform how users engage with digital systems. Generative AI will play a key role in creating personalized, intuitive user experiences that cater to individual preferences. This shift will be further supported by multi-modal interactions, including voice and video, and the growing adoption of composable UI components that allow businesses to tailor applications to specific user contexts.

Chrystal Taylor, Evangelist & Product Marketing Manager at SolarWinds, predicts a continued shift in IT infrastructure toward greater diversification by 2025. Companies will move beyond the outdated approach of relying solely on on-premises, cloud, or SaaS solutions. Instead, businesses will find it necessary to balance across these platforms to optimize efficiency and manage costs effectively. With more experience using these technologies, organizations are becoming smarter about how they allocate budgets and decide which platform works best for their needs. Additionally, AI and machine learning are playing an increasingly pivotal role in IT, helping teams connect systems and data more seamlessly. AI is taking on tasks that once required manual intervention, such as automating correlation, supporting root cause analysis, and identifying seasonal anomalies. It’s far from perfect, but it is significantly improving how quickly and efficiently problems are solved.

AI is also becoming more integrated into monitoring, observability, and incident response tools, where it can pull data and generate summaries that save technicians time. Even more advanced, generative AI is being used to draft responses and predict capacity needs, like forecasting when storage will run low, ensuring smooth operations. However, with these advancements comes a learning curve. Just as past innovations like assembly lines required adaptation, so too will AI. Those who embrace AI, learn to leverage it, and develop skills like prompt engineering will thrive. As AI continues to evolve, the industry will need to focus on improving how data is managed and adapting to new regulations to ensure the technology is used effectively.

In conclusion, the technological landscape of 2025 will require businesses to adapt to emerging trends in AI, cybersecurity, data privacy, and digital infrastructure. By focusing on security, operational efficiency, and responsible use of new technologies, businesses can navigate these changes effectively and remain competitive in an increasingly digital world. The companies that embrace these shifts will be well-positioned to thrive in the next phase of digital transformation.