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McKinsey analysis homes in on 13 frontier tech trends
Agentic artificial intelligent (AI), application-specific semiconductors, and robotic and bioengineering innovations are emerging as the key technological forces transforming the business landscape in 2025, according to the latest report released by McKinsey and Company.
The "Technology Trends Outlook 2025" report highlights 13 frontier technology trends poised to fundamentally reshape global business.
The report groups these transformative trends into three categories: the AI revolution, compute and connectivity frontiers, and cutting-edge engineering.
AI, in particular, stands out not just as a powerful technology in itself, but as a foundational amplifier that accelerates progress and unlocks new possibilities across all other trends, the report says.
AI Revolution
At the forefront of the AI revolution is agentic AI systems which are capable of independently planning and executing complex, multistep tasks, essentially acting as "virtual co-workers" that can autonomously perform actions and adapt to new information.
While quantitative measures of interest and investment are still relatively low compared to more established trends, agentic AI is among the fastest growing, signalling its potentially revolutionary possibilities.
This technology offers benefits such as handling unpredictable tasks, using digital tools designed for people, receiving natural language instructions, and generating understandable work plans.
Real-world applications are already emerging, from OpenAI Operator for web-based tasks and McKinsey's QuantumBlack Labs automating credit memo drafting for banks, to Darktrace deploying autonomous AI agents for cybersecurity and Salesforce's Agentforce enhancing business functions.
Investment in AI has surged dramatically, with US$124 billion in equity investment in 2024 and a further $52 billion in the first quarter of 2025 alone.
Key advancements include a "small-model explosion" that enables high-quality outputs with less computing power, redoubled efforts in multimodal generative AI (processing and generating text, images, video and audio), and improved multistep reasoning capabilities.
Compute and Connectivity shift
The immense computational demands of AI have driven significant innovation in application-specific semiconductors.
These purpose-built chips are optimised for specialised tasks such as AI training and inference, offering superior speed and energy efficiency.
Major tech companies like Amazon, Google, Meta and Microsoft are investing heavily in custom application-specific integrated circuits to optimise performance for specific AI workloads and reduce reliance on third-party suppliers.
Advanced connectivity technologies, including 5G/6G cellular systems and low-Earth-orbit (LEO) satellites, are becoming even more critical as AI disrupts industries globally.
The explosion of AI data centres has notably increased demand for fibre optics, providing the high-speed, reliable, and scalable infrastructure necessary for AI.
In cloud and edge computing, AI is reshaping the entire infrastructure landscape, leading to projections that hyperscale data centre capacity will triple by 2030.
Immersive-reality technologies encompass augmented reality (AR) and virtual reality. These technologies include AR smart glasses, advanced haptic feedback, and AI-powered enhancements that improve rendering, tracking, and processing capabilities.
They have the potential to transform experiences across many industries, according to McKinsey.
Digital trust and cybersecurity involve technologies and practices designed to ensure secure, transparent, and trustworthy digital interactions. This trend covers cybersecurity, AI trust, and blockchain, aiming to mitigate technology and data risks, innovate, and safeguard assets.
Quantum technologies leverage the unique properties of quantum mechanics to perform complex calculations exponentially faster than classical computers, secure communication networks, and produce highly sensitive sensors. This trend includes quantum computing, quantum communication, and quantum sensing.
Key developments involve breakthroughs in quantum chips and capabilities, with major players like Amazon Web Services, Google, IBM, and Microsoft announcing significant advancements.
Cutting-Edge Engineering
The future of robotics is seeing significant advancements, driven by AI.
Robots are moving beyond traditional manufacturing into services, with the development of foundation models that enable robots to generalise from training data and respond flexibly to unique situations.
The future of mobility is being revolutionised by autonomous vehicles, electric vehicles, drones, and urban air mobility solutions.
The value of drone services is projected to reach $29 billion by 2034, expanding their role in commercial operations, while electric vertical takeoff and landing aircraft advance towards regulatory certification for passenger transport.
When it comes to the future of bioengineering, the convergence of biological sciences and advanced computing is accelerating R and D, particularly in pharmaceuticals and biomaterials.
The future of space technologies is rapidly transforming, driven by significant reductions in launch costs due to reusable rockets and satellite miniaturisation.
LEO satellite constellations such as SpaceX's Starlink are expanding global connectivity, and AI is playing a growing role in supporting space operations, improving mission planning and anomaly detection.
Finally, the future of energy and sustainability technologies will see them tackling surging demand for electricity.
Innovations in advanced solar-photovoltaics systems, hydrogen, biofuels, and nuclear power -- including small modular reactors and fusion research -- are central to decarbonising the global energy landscape.
Provided by SyndiGate Media Inc. (Syndigate.info).Thus the article McKinsey analysis homes in on 13 frontier tech trends
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