New Delhi [India], May 12 : The growing Artificial Intelligence (AI) is continuously reshaping industries, economies, and daily life across the globe.
While it has only been a little more than two years since the launch of ChatGPT, a report by Morgan Stanley believes we are still in the early stages of AI's spread across various sectors and regions.
The report mentioned that year 2024 was largely driven by AI enablers and infrastructure companies. However, in 2025, the focus is expected to move toward downstream AI use cases that drive efficiency and help companies gain market share.
It said "while 2024 was driven by AI enablers and infrastructure companies, in 2025 we expect the market to focus on AI downstream use cases that drive efficiency and market share".
According to the report, Agentic AI will take center stage this year. This form of AI, which gives "agency" to software programs, allows them to not just respond to user queries like a chatbot, but to take action and fulfill tasks on their own.
As companies shift from the reactive "chatbot phase" to the proactive "task-fulfillment phase," they are likely to see major productivity gains.
The report added that companies that adopt Agentic AI tools early and effectively can outperform others.
It suggested that the market has vastly underestimated the scale of benefits that AI adoption can bring. Strong enterprise adoption, better-than-expected model capabilities, a wider range of monetization opportunities, and less debate over return on investment (ROI) are some of the positive trends expected in 2025.
Additionally, the report also believed that embodied AIsuch as robots, autonomous vehicles, drones, and space technologieswill progress faster than market expectations. This adds another layer of growth potential to the AI landscape.
The report adds that AI spend will rise substantially but revenue will start coming by 2028.
"AI spend is set to rise dramatically, but we see a USD 1.1 trillion revenue opportunity as early as 2028, with contribution margins of 34 per cent in 2025, rising to 67 per cent by 2028". said the report
In summary, the report outlined that 2025 is set to be the year of Agentic AI. With its potential to increase productivity and market performance, companies embracing this technology are expected to lead the next phase of AI-driven transformation.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor