Generative AI, at first, felt like a shiny new toy, exciting but not fully understood. Fast forward to the end of 2024, and it was clear that this technology has grown into a transformative force, changing how we create, engage, and solve problems.
But now, businesses are realising that large language models are not always the best fit. In some cases, small language models with fewer parameters prove to be more cost-efficient, adaptable, and better suited for addressing targeted demands. This signals the rise of SLMs alongside LLMs in 2025.
Companies are increasingly adopting Retrieval-Augmented Generation (RAG) to streamline interaction with documentation and generate accurate content quickly. By simplifying access to unstructured data across sources, RAG has significantly boosted efficiency, particularly in customer support.
On the creative front, the spark that Midjourney and Dall-E ignited in 2023, paved the way for Sora (by Open AI), fueling the dream for prompt-based photo-realistic video generation. The tool’s influence is already evident, with the launch of tools like DeepMind’s Veo and Tencent’s Hunyuan AI video generators. As 2024 laid the groundwork for AI-generated video, 2025 promises to elevate this technology further. Fully AI-generated campaign videos are set for mass adoption, democratising creativity and boosting efficiency in video production for smaller companies.
Tools like DeepMind’s Genie 2 are set to disrupt gaming by procedurally generating expansive 3D worlds, accurately rendering unseen areas when revisited. With this, generative AI’s potential extends further to experiential marketing, enabling interactive ads that let users explore virtual stores or unlock rewards. The result? Efficient, accessible gamification that redefines brand engagement.
In 2025, agentic AI is poised to drive autonomous decision-making, with AI agents expected to handle 15% of daily work decisions by 2028, further revolutionising efficiency.
I certainly believe, 2025 isn’t just about the “wow” factor; it’s about balance. Generative AI has reached a point where it’s delivering both creativity and efficiency, but its true value lies in how it helps us work smarter, not harder.
As we unlock new possibilities with this technology, the responsibility to use it ethically and transparently becomes even more critical. Looking ahead, generative AI will continue to surprise us – amplifying creativity and helping us connect in ways we once considered unimaginable.
The author is VP, data science, CleverTap.
