The Rise of Agentic AI and 12 Other Frontier Tech Trends Transforming Global Businesses
In the rapidly evolving landscape of technology, artificial intelligence (AI) is undeniably at the forefront of transformation. However, a recent report by McKinsey & Co. uncovers a range of emerging technologies that are also reshaping global business. The McKinsey Technology Trends Outlook 2025 highlights 13 key trends that are not only innovating various sectors but also addressing critical global challenges.
1. Agentic AI
Agentic AI represents the cutting edge of artificial intelligence. These systems can independently plan and execute complex, multi-step tasks. With advancements in foundational models, agentic AI can perform actions autonomously, adapt to new information, and even communicate with other agents. The investment in this technology is booming, with $1.1 billion projected for 2024, reflecting a staggering 985% increase in job postings compared to the previous year.
2. Artificial Intelligence
While agentic AI leads the charge, traditional AI is making significant strides as well. This branch of AI focuses on systems that emulate human intelligence, including decision-making and pattern recognition. The forecasted equity investment in AI stands at a whopping $124.3 billion for 2024, alongside a 35% rise in job postings. This indicates a fundamental shift in how businesses operate, leveraging AI for efficiency and innovation.
3. Application-Specific Semiconductors
These chips are specially designed to handle particular tasks, such as AI training and inference, making them crucial in today’s tech ecosystem. Unlike general-purpose semiconductors, application-specific ones offer enhanced speed and energy efficiency. The investment in this space is expected to reach $7.5 billion in 2024, accompanied by a 22% increase in job postings. This trend highlights a growing need for precision and performance in hardware.
4. Advanced Connectivity
The evolving landscape of connectivity is vital for improving digital communications. This includes 5G networks, emerging 6G technologies, and low-Earth-orbit satellites that enhance broadband access. Projected equity investment for advanced connectivity is around $44.2 billion in 2024, though there’s a slight decline of 14% in job postings. This trend is crucial for supporting the bandwidth demands of emerging technologies.
5. Cloud and Edge Computing
Cloud and edge computing are reshaping how data is processed, stored, and utilized. By distributing workloads across various locations, these technologies enhance performance and address data sovereignty issues. With an expected investment of $80.8 billion, this area is showing a modest 2% growth in job postings. As businesses seek increased efficiency and security, cloud and edge solutions become indispensable.
6. Immersive-Reality Technologies
Augmented reality (AR) and virtual reality (VR) technologies are at a pivotal moment. With advancements in smart glasses and AI-powered enhancements, these immersive technologies are being leveraged for training, gaming, and retail. The projected investment stands at $6.0 billion for 2024, yet job postings in this sector declined by 11%, indicating a potentially saturated market.
7. Digital Trust and Cybersecurity
As cyber threats grow more sophisticated, digital trust becomes paramount. Technologies focusing on identity verification, data protection, and threat detection are essential for secure online interactions. With projected investments of $77.8 billion in 2024 and a 7% increase in job postings, this trend underscores the importance of maintaining security in an increasingly digital world.
8. Quantum Technologies
Harnessing the unique properties of quantum mechanics, quantum technologies promise computational power far exceeding that of classical computers. This emerging field is expected to attract $2.0 billion in investments, albeit with a 15% decline in job postings. As companies and governments explore the potential for faster computations and secure communications, quantum technologies are likely to play a transformative role.
9. Future of Robotics
Robotics are becoming increasingly autonomous, capable of adapting to real-world inputs with a degree of dexterity. Recent projections indicate a $7.0 billion investment in this field, with job postings falling slightly by 2%. As robots become integral to manufacturing and logistics, this trend reflects the ongoing integration of robotics into various industries.
10. Future of Mobility
Mobility technologies—including electric vehicles, drones, and urban air mobility solutions—are set to revolutionize transportation. An estimated $131.6 billion in investment underscores the importance of efficiency and sustainability in this sector, with a 6% increase in job postings. As urban areas grow, innovative mobility solutions will be crucial for reducing congestion and enhancing mobility.
11. Future of Bioengineering
Incorporating engineering principles into biological systems, bioengineering is advancing health and nutrition through techniques like gene editing and synthetic biology. The anticipated $57.3 billion investment reflects its importance, though job postings have seen a significant decline of 17%. As the world grapples with health challenges, bioengineering is proving essential for innovation in healthcare.
12. Future of Space Technologies
Space technologies encompass satellite systems, launch vehicles, and exploration initiatives designed for interconnectivity and Earth observation. Investment in this sector is expected to reach $9.3 billion, despite a 9% decline in job postings. As nations prioritize space exploration and satellite-based services, this trend highlights the growing interest in leveraging space for commercial and scientific advancements.
13. Future of Energy and Sustainability Technologies
The final frontier encompasses technologies aimed at reshaping the global energy landscape, focusing on sustainability through clean energy sources. Anticipated investments of $223.2 billion reflect the priority given to energy transformation initiatives, even as job postings decline by 6%. This shift reaffirms the urgent need for solutions to climate challenges that threaten our planet.
As we delve deeper into this transformative era, it’s clear that these 13 tech trends are set to reshape our world significantly. Each trend not only represents an area of investment and growth but also serves as a response to the challenges and opportunities of our time. With AI as a foundational element, the potential for innovation and the promise of a better future are more attainable than ever.