Top 6 AI & Machine Learning Trends to look out for in 2025

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AI and Machine Learning have been the hottest buzzwords in the decade that has gone by. According to a study, 77% of devices that we use in our day-to-day lives are now powered by AI and ML. From platforms like Netflix and Facebook to products like Amazon’s Alexa and Google Home, AI has become the core of nearly every product and service that we come across.

In 2025, the enterprise world has also added to the capabilities of AI Agents, as they help build strong customer relationships and smooth business operations. No wonder Conversational AI has become a fascination of global businesses and SMEs alike.

The AI-ML Industry is growing rapidly and unlocking new avenues for enterprises aiming to bring vital changes to the ecosystem. According to a Gartner study, around 37% of all companies reviewed were found utilizing some type of ML in their business.

The Global Artificial Intelligence Hardware Market was valued at approximately USD 9.8 billion in 2019 and is pegged to grow with a healthy CAGR of more than 37.5% over the forecast period 2020-2027.

So, as we begin a promising decade in the New Normal, it becomes important to know about the trends of AI-ML that might follow.

Robotic Process Automation + Artificial Intelligence = Hyper-Automation

Hyper-automation was identified by Gartner, as one of the best technology trends to be used in an organization for automation.

The pandemic has stepped up the adoption of the concept that all the company’s operations should be automated including legacy business processes. AI and ML are the significant drivers of hyper-automation. If Robotic Process Automation (RPA), Machine Learning (ML), and Artificial Intelligence (AI) work in harmony to automate complex business processes, then hyper-automation is a means for real digital transformation.

Power of Machine Learning (ML) + Internet of Things (IoT)

Kevin Ashton is considered the father of IoT, which comprises a smart infrastructure connected via the internet to the cloud. The Internet of Things became a rapidly emerging segment in the last decade.

Economic analyst Transforma Insights has forecasted that the worldwide IoT market will comprise 24.1 billion devices by 2030, producing $1.5 trillion in income.

Arthur Samuel is the inventor of Machine Learning who defined this term in 1959. The utilization of Machine Learning is progressively interlaced with IoT. Machine Learning, Artificial Intelligence, and Deep Learning, for instance, are now being used to make IoT devices and services smarter and more secure.

Augmented Reality in Chatbots

Artificial Intelligence together with Augmented Reality (AR) is considered one of the main enablers of the Internet of Senses (IoS), a megatrend from 2021 toward 2030.

Augmented Reality is quite a unique technology that actually takes customer engagement to a whole new level. AR and chatbots are two of the most promising e-commerce opportunities. Both solutions offer a wide range of applications that could help organizations become more successful while also keeping customers happy.

Customers are already accustomed to conversing with chatbots about their questions whether in a store or on a website, so adding augmented reality would take things to the next level. When these two technologies are coupled, they open up a world of previously unexplored possibilities.

Innovation in this regard is an app or website for the users where a smart cognitive chatbot leverages augmented reality to facilitate the purchase decision, prompting customers with relevant recommendations and new experiences.

Uniqueness, personalized content, better and memorable customer experience are a few ways that chatbots and augmented reality can be used to make the customer’s purchasing experience more enjoyable and satisfying. For example, if you want to see how trousers would fit you, you can use AR technology to determine the correct size for you by simply uploading a picture of yourself.

Reinforcement Learning

Reinforcement Learning is the area of machine learning that can be used by companies in the future for deep learning, thereby improving the effectiveness of gathered data.

An ideal illustration of reinforcement learning is a cognitive virtual assistant that addresses simple user queries like greetings, order bookings, and consultation calls and through reinforcement learning builds and improves on these interactions giving it the ability to address more complex user queries such as product demos and human-like conversations.

Use of AI & ML in Business Forecasting & Analysis

This technology is already being used by experts to screen a set of data over a period of time which then is examined and utilized for making smart decisions. With changing strategies, the ML networks can give conjectures with accuracy as high as 95%.

We will soon see organizations blending recurrent neural networks for high fidelity forecasting.

We are already witnessing the use of AI and ML to make smarter marketing and product decisions by capturing real-time insights into customer conversations.

Increased adoption of hyper-personalized and contextual communication.

We have all heard of the saying that Content is King. However, 2025 will bring in a change where we hear “Context is King”.

With the adoption of AI & ML tools and methods – we will see brands and organizations increasingly adopt a more personalized and context-driven approach to communication.

Augmented reality and chatbots, when correctly merged and deployed, might be extremely beneficial to many organizations, particularly in the retail industry. Proper implementation will result in a positive client experience on your online store, resulting in increased income for the company.

Schedule a demo with our experts to know more about how you can achieve the same for your retail business.

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