NEW YORK (AP) — Artificial Intelligence (AI) is not just a buzzword but is increasingly being integrated into core business operations across various industries. As companies transition from experimenting with AI to leveraging it for practical applications, insights from experts underscore a promising future shaped by responsible AI adoption.

Dan Priest, the newly appointed Chief AI Officer at PwC, emphasized that 2024 was primarily about proving AI's potential, while 2025 is expected to focus on scaling AI technologies. According to his observations, nearly half of Fortune 1000 companies are embedding AI fully into their workflows, marking a significant shift in business strategies that now recognize AI's transformative impact. Notably, about 73% of CEOs indicated that AI would alter their business models, particularly as generative AI facilitates tailored consumer experiences.

As Priest mentioned in an interview with the (AP), "To be competitive, companies can’t just predict what consumers want anymore." The paradigm has shifted towards personalization through AI, which can significantly enhance customer satisfaction and business efficiency. For instance, cruise lines can now personalize offerings based on individual preferences instead of relying on broad predictions.

While business leaders are optimistic about AI, 2024 was characterized by a move from merely deploying models to creating viable products. Arvind Narayanan, a computer science professor at Princeton, stated that this year revolved around building AI products that serve actual needs, as opposed to previous years focused on the novelty of AI capabilities.

Despite the surge in interest and investment, with analysts estimating hundreds of billions poured into AI technology, there are prevailing concerns regarding the return on investment and the practical advantages of these tools. Analysts have noted a significant shift in discussions — from existential threats posed by AI to its incorporation into routine technological applications. Unfortunately, many earlier expectations around AI's potential have not materialized to the extent anticipated. Kash Rangan, a Goldman Sachs analyst, pointed out that while AI is incrementally improving productivity across various fields, the cost factor remains a pressing concern.

Among the numerous industries impacted, the entertainment sector is witnessing stirrings of worker discontent, with concerns over job security as AI continues to evolve. The Screen Actors Guild, for example, has expressed apprehension over AI potentially replacing performers, leading to strikes over job protection. In a similar vein, musicians and authors are voicing alarm over AI applications utilizing their works without consent.

Vijoy Pandey from Cisco offered insights into the future trajectory of AI, predicting a shift towards “agentic” AI — autonomous agents capable of collaborating with one another to tackle complex challenges. This evolution could foster a more integrated approach to problem-solving, reminiscent of human teamwork.

Moreover, the medical field has seen noteworthy advancements through AI applications, such as accelerated diagnostics and support in drug discovery processes. As AI technologies streamline the research phases, some collaborations could potentially reduce timelines significantly. However, appropriate caution is warranted to avoid misinformation, as AI tools are not infallible and can sometimes generate inaccurate outputs.

As we look towards 2025, the convergence of AI tools into everyday business functions seems inevitable. Companies that can adeptly navigate the balance between leveraging AI's capabilities and managing its risks will likely emerge successfully in the coming years. The outlook remains optimistic, with responsible integration set to define the landscape of AI across industries.

For more insights, read the full articles on the impact of AI in business from the (AP) and see how AI's role has evolved over time in another report from (AP).