IDC FutureScape: Worldwide Artificial Intelligence and Automation 2025 Predictions

IDC FutureScape: Worldwide Artificial Intelligence and Automation 2025 Predictions


The IDC study provides IDC's top 10 predictions for artificial intelligence and automation in 2025 and beyond."AI agents are set to revolutionize various industries by enhancing efficiency, improving customer experiences, and enabling new business models," says Ritu Jyoti, GVP/GM, AI and Data Research at IDC. "With technological innovations, responsible technology usage, and workplace transformation, AI adoption barriers will continue to diminish, mitigate barriers, and transform an enterprise operating model."


IDC FutureScape Figure

Executive Summary

IDC FutureScape Predictions

Summary of External Drivers

Predictions: Impact on Technology Buyers

Prediction 1: By 2026, 90% of Enterprise Use Cases for LLMs Will Be Dedicated to Training SLMs Because of Cost, Performance, and Expanded Deployment Options

Associated Drivers

IT Impact

Guidance

Prediction 2: By 2027, AI Adoption Barriers Will Become Indistinct Due to AI Infrastructure Commoditization, Advanced LC/NC Tools, and Security Frameworks, Leading to Reduction of AI Build Costs by Nearly 80%

Associated Drivers

IT Impact

Guidance

Prediction 3: By 2026, 20% of Frustrated Knowledge Workers With No Development Experience Will Take Charge of Transforming How They Work by Building Their Own Agentic Workflows, Improving Cycle Times by 40%

Associated Drivers

IT Impact

Guidance

Prediction 4: By 2025, 50% of Organizations Will Use Enterprise Agents Configured for Specific Business Functions, Instead of Focusing on Individual Copilot Technologies to Achieve Faster Business Value from AI

Associated Drivers

IT Impact

Guidance

Prediction 5: By 2028, 80% of Foundation Models Used for Production-Grade Use Cases Will Include Multimodal AI Capabilities to Deliver Improved Use Case Support, Accuracy, Depth of Insights, and Intermode Context

Associated Drivers

IT Impact

Guidance

Prediction 6: By 2028, 80% of RAG Implementations Will Be Embedded in Generative AI–Based Features and Products, Increasing Standardization and Transparency About the Use of Contextual Data for Such Applications

Associated Drivers

IT Impact

Guidance

Prediction 7: By 2028, 80% of Foundation Models Used by Enterprises Will Be From a Maximum of Three Providers as the Market Will Consolidate Due to Unsustainable Business Models

Associated Drivers

IT Impact

Guidance

Prediction 8: By 2026, 65% of Enterprises Will Adopt Hybrid Edge-Cloud Inferencing as Organizations Fully Integrate Edge into the Cloud Infrastructure and Management Strategy

Associated Drivers

IT Impact

Guidance

Prediction 9: By 2027, a Third of New AI Applications Will Contain a Diversified Set of Chained Traditional and GenAI Models and Business Rules, Outpacing the Development of New Singular AI Model Applications

Associated Drivers

IT Impact

Guidance

Prediction 10: By 2027, 80% of Critical AI Decisions Will Require Human Oversight Supported by Visual Explainability Dashboards, Potentially Slowing Processes but Enhancing Accountability

Associated Drivers

IT Impact

Guidance

Advice for Technology Buyers

External Drivers: Detail

AI-Driven Business Models — Moving from AI Experimentation to Monetization

The Drive to Automate — Toward a Data-Driven Future

Future Proofing Against Environmental Risks — ESG Operationalization and Risk Management

AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today

Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape

Responsible and Human-Centric Technology — Ethics in the Enterprise

Battling Against Technical Debt — Overcoming Hurdles to IT Modernization

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