What does the tech industry have in store in 2025?
AI, of course, tops the list of technology disruptors, but what else will influence the world of tech this year?
Let's dive into the most exciting developments we think will define the tech scene in 2025.
Increased Adoption of Artificial Intelligence and Machine Learning
It’s no secret the adoption of AI and machine learning is accelerating rapidly across the globe.
Almost a third of all global venture funding went to companies in AI-related fields in 2024, making artificial intelligence the leading sector for funding. We expect that trend to continue into 2025. Michigan Tech is at the forefront of integrating AI into engineering design and sees developers increasingly focused on creating and implementing test cases to assess the quality of AI-written code instead of coding themselves.
Agentic AI, an advanced form of AI characterized by its ability to take autonomous actions to achieve specific goals, is also expected to take hold. For example, a virtual AI assistant goes beyond reactive responses to proactively searching and making recommendations. Netflix already uses agentic AI’s capabilities to provide entertainment options based on past preferences.
Agentic AI will accelerate the transition of AI from a mere tool to a proactive collaborator, capable of continuous learning from user interactions and making decisions with minimal human intervention. By 2028, it's predicted that 15% of day-to-day work decisions will be made autonomously through agentic AI, up from 0% in 2024.
More Use of Robotics and Drone Technology
The Federal Aviation Administration is expected to issue rules that allow drones to operate in national airspace, or beyond visual line of sight, or BVLOS. This new rule would give drone operators a broader area in which they can be flown, unlocking the technology’s potential and paving the way for further innovation.
With that in mind, 2025 could see the expansion of Drone-as-a-Service (DaaS) companies looking to redefine logistics, agriculture, and disaster response, among other industries.
Startups in the Midwest are well-positioned to capitalize on this trend. For example, Airspace Link, a Detroit-based startup part of Newlab’s mobility incubator, secured $37 million in funding for drone tech development late last year. Airspace Link is aggressively preparing for the new federal rules and with the funding, has increased their workforce from 17 to 50 employees.
A Surge in Cybersecurity
As cyber threats become from sophisticated — and impactful — companies will focus more and more on protecting their data. In the U.S., the cost of a data breach hit more than $9 million in 2024.
Driven by the increasing need for robust digital security measures, the Midwest is experiencing a surge in cybersecurity startups, with hubs emerging in Ann Arbor and Detroit. Duo Security, Michigan’s first unicorn company and subsequently bought by Cisco, paved the way for cybersecurity companies in the region. Today, companies like Detroit-based Judy Security, which recently raised $10 million in funding, are making enterprise-grade security accessible to small and medium-sized businesses. And Hush, also located in Detroit, uses AI to find and remove information that opens the door for bad actors.
Advancements in Electric Vehicles
In 2024, 1.3 million electric vehicles (EVs) were sold in the U.S., a 7.3% increase from 2023. More people purchasing EVs is fueling significant advancements in EV technology. In 2025, we can expect to see improvements in battery technology, focusing on increased energy density for longer ranges, faster charging capabilities, and reduced environmental impact of battery production and disposal.
Michigan is a hotbed for mobility startups — like May Mobility and Our Next Energy — and is investing $27 billion into 60 EV manufacturing and battery projects across the state.
As we look towards 2025, the tech landscape in the US, and particularly in the Midwest, is full of opportunity. From AI and robotics to sustainable tech and cybersecurity, there's no shortage of exciting developments on the horizon.
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