What’s Next for AI, IoT, and Blockchain in 2025

The cumulative market cap of IoT, Blockchain, and AI is estimated to be over $1.362 trillion in 2024. With 2025 just around the corner, what’s next for these cutting-edge technologies?

Intelligent, wireless, decentralized environments – that’s the world we envision in the next two decades. The future of companies across different verticals relies on three key technologies:

• Artificial Intelligence (AI)
• Blockchain
• Internet of Things (IoT)

These technologies automate crucial processes, simplify life, and drive better security and transparency. Globalization is gaining pace, product complexities are increasing, and consumer demands have risen to an all-time high. 

This is why forward-thinking business leaders invest heavily in research to build solutions for a more tech-forward tomorrow.

Read More: How Digital Leaders are Utilizing Gen AI to Perfection

We’ll analyze the overall trajectory of IoT, AI, and blockchain and anticipate what’s next.

Blockchain, IoT, and AI – Simplified!

Before we talk about the future, let’s briefly define these technologies so that you don’t get puzzled later on:

• Blockchain: We can think of a blockchain as a distributed ledger that establishes trust and transparency between parties without needing middlemen. It works by creating permanent tamper-proof records of transactions or data exchanges that are secured cryptographically. This eliminates risks in interactions between people, organizations, and even machines by ensuring integrity.
• Artificial Intelligence (AI): Refers to computer systems that can perform tasks that typically require human cognition and decision-making. By recognizing visual, language, or data patterns, AI can provide recommendations or take actions based on its training. So, while AI is still narrow in scope today, the goal is to make machines more capable of complex reasoning.
• Internet of Things (IoT): As the name suggests, the Internet of Things (IoT) refers to a network of physical objects embedded with sensors, software, and connectivity that enables data exchange. This allows objects, ranging from industrial machines to household appliances, to share real-time insights that can drive automated and intelligent action. So, IoT promises to transform environments into responsive and predictive systems.

What The Future Looks Like For AI

 

73% of US companies have started using AI in some capacity to automate their tasks. 

At Cubix, AI is at the core of our processes and offerings. Here’s how it helps us accelerate delivery:

“AI optimizes every aspect of our delivery for unmatched velocity. By analyzing past data, AI models tighten estimations, automate repetitive tasks, and recommend design upgrades.”

– Zohaib Ali, Senior Project Manager at Cubix

With intelligent automation being the new normal in the tech industry, here are some top trends in AI you should be aware of:

1. Democratizing AI Through Generative Models

Does generative AI even need an introduction at this point?

We all use models like ChatGPT, Gemini, and Claude frequently for different professional and personal tasks. 

The most cutting-edge models use deep learning to analyze billions of data points from the internet and generate shockingly human-like output.

ChatGPT, in particular, has captured the public’s attention thanks to its ability to chat about virtually any topic while sounding uncannily natural. This general-purpose conversational agent can clearly explain complex ideas, admit when unsure, and even refuse inappropriate requests.

The democratization of these once-inaccessible technologies is a central reason generative AI will dominate headlines in 2025. AI was previously only used by tech giants. But now, freelancers, entrepreneurs, artists, and more are integrating game-changing programs like ChatGPT into their workflows.

Read More: Is Google’s New Gemini AI Better than ChatGPT?

2. The Future of Multimodal AI

Another emerging 2025 AI trend is the growth of multimodal algorithms that can process data from different sources like text, images, audio, video, and more. 

AI now makes sense of the world quite like humans do: through sight, sound, and more. That’s where multimodal AI comes into play. Smart assistants like Siri, Alexa, and Google Assistant already utilize different inputs to handle commands. 

As these algorithms ingest more modalities of data, expect the user experience to become more seamless and intuitive across applications you use daily. Just like the human brain fuses sight, sound, touch, and more into a cohesive understanding of the world, multimodal AI aims for the same integrated intelligence.

Read More: IBM Launches New AI Models for Enterprises

3. Supercharging Productivity with AI

We’re already seeing AI transform workflows from QA automation to advanced predictive analytics. Processes that entirely relied on human effort are now streamlined with intelligent algorithms.

Smart data entry tools can extract essential information from PDFs or printed documents and automatically create spreadsheets in seconds. AI-powered meeting assistants like Google’s Multitask Unified Model (MUM) can generate real-time notes, action items, and summaries.

It’s crystal clear that AI adoption will improve efficiency for enterprises and SMBs. However, avoid over-automation or usage of AI. No matter how refined AI gets, it needs human intervention or supervision to deliver accurate outcomes. It still has much ground to cover regarding ethical judgment, emotional intelligence, and creativity. 

Read More: Why Talent Leaders Need To Capitalize on Generative AI

4. Agentic AI Gets Stuff Done with Less Oversight

Proactive “agentic” AI takes the initiative instead of just responding to commands. While most AI models today follow predetermined logic, agents have heightened autonomy to pursue goals.

They can assess changes in their environment, create plans, take action, set goals, and learn on the go. They mimic human thinking and behavior by focusing more on outcomes rather than processes.

For instance, AI environmental monitoring agents could gather climate data, identify early fire warning signs, and take preventative actions independently. Similarly, AI investment advisors might adapt tactics on the fly, reacting to financial market shifts.

By understanding environments and objectives, agentic AI can work towards outcomes with less human supervision compared to more simplistic reactive systems. Just ensure ethical programming before launching agentic models!

Read More: Key Fintech Trends Shaping the Future of Finance

5. Custom Enterprise Models Replace One-Size-Fits-All AI

Pre-trained models like DALL-E 3 wow with general conversational and artistic brilliance. But mass market chatbots serve different needs than, say, inventory management AI. That’s why customizable niche models will gain traction over bulky open-source systems.

Tailoring architecture and training datasets to specific domains allows superior performance on specialized tasks. Tightly honed AI can enhance workflows ranging from engineering simulations to financial forecasting.

Focused models are faster, more accurate, and protect sensitive data that risks exposure when using external services. We’ll see more industry-specific AI embedded directly into business solutions rather than tacked on.

Read More: Top 7 Predictions from Experts at Cubix for Generative AI

Now that we’ve discussed the most hyped AI trends for 2025 let’s talk about the technology that will revolutionize connectivity – the Internet of Things (IoT).

How Will IoT Shape The Future Of Connectivity?

Here are some IoT trends you should look forward to:

1. Evolution of Edge Computing

As IoT ecosystems generate exponentially rising data, analyzing real-time insights at the cloud scale leads to latency, cost, and connectivity challenges. Edge computing is overcoming these by processing data locally on decentralized devices.

Edge AI solutions like NVIDIA’s EGX train models based on data patterns from machinery sensors to quickly detect anomalies and trigger interventions. Such ability to respond instantly also unlocks new revenue models. For instance, retail edges can deliver hyper-personalized promotions to customers onsite.

With the 5G rollout, edge adoption is expected to accelerate. Leading public cloud providers like AWS and Azure now offer integrated edge services, spawning innovative business models.

Read More: Achieving Excellence with Cloud-Native Solutions 

2. Emergence of Metaverse IoT

Metaverse Environments blending physical and virtual worlds promise a paradigm shift across entertainment, retail, education, and collaboration. Although still evolving, IoT integration is fundamental to maximize its experiential potential.

Virtual spaces can simulate interactive IoT infrastructure for prototyping digital twins of assets and processes. Immersive dashboards from Cognite provide 3D visualizations of industrial sensor data for remote monitoring. IoT spatial analytics can optimize in-store customer journeys by understanding shopping behavior.

As Augmented and Virtual reality capabilities advance, Metaverse IoT could witness massive adoption, driving business performance through deeper insights and democratized access.

Read More: Your Gateway to Metaverse Success

3. Blockchain Securing IoT Ecosystems

As IoT adoption increases, security threats pose significant challenges. Blockchain establishes robust decentralized identity verification for devices participating in IoT networks. Integration with hardware roots-of-trust anchors device credentials firmly to their blockchain persona.

With the blockchain IoT market expected to reach $5.6 billion by 2026, decentralized trust mechanisms promise to address vulnerabilities at scale across increasingly interconnected ecosystems.

Read More: Evolution of Smart Cities – IOT Integration for Urban Sustainability

Speaking of blockchain, let’s explore what innovations we can expect in the coming year.

Blockchain Trends You Should Look Out For In 2025

2025 can be the year of blockchain. At Cubix, we offer custom blockchain solutions for your unique use cases. Here’s how we’re working towards a decentralized future:

“By combining deep domain expertise, technical excellence, and an innovation-first culture, our teams purposefully design economic models powered by trustless systems and decentralized intelligence that reshape ecosystems for the better.”

– Umair Ahmed, Senior Program Manager at Cubix

Here are the trends that’ll kickstart the era of decentralization across different verticals:

1. Interoperability for Connected Ecosystems

There is tremendous innovation happening in the blockchain space, leading to new application-specific protocols. However, most blockchain networks today work in silos, unable to interoperate. Bridging this gap is crucial for building a connected economy.

Emerging interoperability solutions allow the transfer of data and value across chains. For example, Polkadot’s parachain model enables interchain composability. Cosmos’ Inter-blockchain Communication (IBC) protocol creates interoperability by forming trusted channels between chains. Such advancements are vital for DeFi apps needing cross-chain accessibility.

As interoperability unlocks new capabilities, it promises to be one of the biggest areas of impact, making blockchains integral to business.

Read More: 5 Key Blockchain Protocols You Need to Know

2. Mainstreaming Asset Tokenization

Representing ownership rights to assets as digital tokens on blockchain promises to expand access and enable fractional ownership. While NFTs have captured attention recently, tokenization of real-world assets is also picking up pace.

For example, several startups are tokenizing high-value assets like art, collectibles, and real estate. This allows investors across geographies to own shares of the asset without complex legal contracts. Such investments facilitated by blockchain are more liquid, can be executed in smaller lot sizes, and may have lower entry barriers than traditional routes.

As tokenization infrastructure matures further with legal recognition and compliance built-in, it has the potential to unlock trillions in capital flow.

Read More: The Impact Of Asset Tokenization On The Finance Industry

3. Immersive Metaverse Environments

Metaverse is an embodiment of next-generation virtual worlds using AR/VR, where users can digitally interact for entertainment, shopping, or work. Although still partly conceptual, blockchain and crypto are poised to form the economic bedrock for such immersive environments.

Decentralized metaverse platforms allow users to create experiences with transparent ownership rights. Blockchains also enable seamless payments using cryptocurrency wallets and facilitate NFT-based ownership of digital assets.

Startups like Decentraland, providing tools to develop virtual worlds, have already seen significant traction. As devices, connectivity, and content evolve further, blockchain-powered metaverse bringing enhanced agency, identity, and trust could leap into mainstream adoption on an unprecedented scale.

Read More: Top 5 Metaverse Development Tools, Technologies & Their Use Cases

4. Evolution of Blockchain-as-a-Service

Platforms like Amazon Managed Blockchain and Microsoft Azure Blockchain simplify running blockchain networks using cloud infrastructure. Such Blockchain-as-a-Service (BaaS) allows enterprises to focus on application logic rather than protocol mechanics.

As blockchain permeates business segments from finance to sustainability, the demand for skill sets is increasing exponentially. BaaS can allow more rapid application development by abstracting underlying technology complexities.

With global giants offering BaaS coupled with trends like multichain interoperability, building blockchain apps is becoming easier than ever before. This promises to accelerate transformation across domains at scale.

Read More: Beginner’s Guide to Blockchain Development

Final Thoughts

AI, Blockchain, and IoT will often combine across different use cases, driving innovation at pace and scale. 

With AI powering intelligent automation, Blockchain securing data and enabling transparency, and IoT making connectivity more scalable and seamless, we may see a different world altogether in the next two decades.

While this sounds exciting, technology leaders need to embrace responsible innovation and ensure environmental sustainability.

If you’re a business leader looking to tap into these technologies, you need a trusted development partner. You need Cubix.

We realize your inventive ambitions, turning them into solutions that drive innovation, boost ROI, and enable you to lead digital transformation in your sector.

Contact our representatives, and we’ll see how we can help you with your ideas and goals.