Vijay Raghavan

Sustained interest and experimentation in AI will support learning and steady progress in 2025. Generative AI (genAI) and edge intelligence will drive robotics projects that will combine cognitive and physical automation, for example. Citizen developers will start to build genAI-infused automation apps, leveraging their domain expertise. All promising, but challenges remain that will hinder progress in 2025.

Our 2025 predictions for software development come on the heels of a year that saw nearly every software tooling vendor incorporate (or plan to incorporate) a generative (genAI) “copilot” capability into their tools. And there’s good reason for them to do so, as Forrester’s most recent Developer Survey indicates that 49% of developers are expecting to use or are already using a genAI assistant in the coding phase of software development.

A year ago, we predicted a more stable, if not stellar, performance for insurers in 2024 after a couple of years of higher-than-expected claims costs. In 2025, we predict that insurers will continue to pass on higher costs of rising claims expenses to customers. This improving profitability will translate into increased tech spending as insurers prioritize innovation, data, AI, and automation, but most insurers won’t see immediate, material, and direct benefits from AI.