Michelle ThompsonAlthough AI can’t foresee the future just yet, two of our tech editors have shared their insights on what they believe will dominate in 2025.
Crypto’s friend in the White House?
As 2022 came to an end, the cryptocurrency industry faced a grim outlook.
One of its most prominent companies, FTX, had collapsed, leaving $8 billion (£6.3 billion) in customer funds unaccounted for. By March 2024, FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison for defrauding customers and investors.
The scandal shook trust across the entire sector, and cryptocurrencies seemed destined to remain a niche product with a passionate but limited user base.
What is cryptocurrency?
However, the narrative shifted dramatically within months, fueled by Donald Trump’s success in the 5 November presidential election. Optimism surged as many believed his administration would take a friendlier stance toward the cryptocurrency industry.
In December, Trump announced plans to nominate former SEC commissioner Paul Atkins as the new chairman of the Wall Street regulator. Atkins, seen as more pro-cryptocurrency than his predecessor Gary Gensler, sparked renewed excitement in the sector.
Following the announcement, the value of Bitcoin, the largest cryptocurrency, broke past $100,000.
“With Trump’s victory, we could see proactive regulation in 2025, including the removal of restrictive policies that could pave the way for banks and institutions to enter the market,” said Geoffrey Kendrick, global head of digital assets research at Standard Chartered.
Kendrick highlighted the potential rollback of SEC guidance known as SAB 121, which since 2022 has made it challenging for financial firms to offer cryptocurrency services.
This shift might help Trump deliver on his July pledge to position the US as the global leader in cryptocurrency—a stark contrast to his 2021 remarks labeling Bitcoin a “scam.”
How much do you want AI to know about you?
AI gets personal
As AI tools become integrated into our phones—offered by Apple, Google, and Samsung with features like photo editing, language translation, and web searches—we are entering an era where AI becomes a key part of our digital lives, offering increasingly personalized assistance.
However, this progress requires a significant leap of trust.
Take diary management as an example: an AI tool could efficiently handle your schedule, but only if you grant it access. How far should this access extend?
Would it need to know which meetings you’d prefer to avoid, or any private relationships you’d rather keep hidden? Could it even summarize counselling sessions or medical appointments?
Such deeply personal information raises concerns about privacy and potential embarrassment if a technical glitch were to expose it. Trusting big tech firms with such sensitive data is a critical question.
Microsoft has already ventured into this space. In 2024, it faced backlash for a tool called Recall, which captured periodic snapshots of laptop desktops to help users rediscover lost content. Although the product never launched, Microsoft defended its potential and has since made adjustments.
“I believe we’re entering a new age of ever-present, capable co-pilot companions in daily life,” said Mustafa Suleyman, Microsoft’s head of AI.
Despite these challenges, Ben Wood, chief analyst at CCS Insight, predicts more tailored AI services will emerge in 2025.
“These tools will constantly update by analyzing evolving data sources like emails, messages, documents, and social media, allowing them to adapt to individual communication styles and preferences,” he explains.
Still, Mr. Wood acknowledges that granting AI such access to personal data is a significant step.
“Trust will be crucial,” he emphasizes.
Significant investment is expected to flow into data centers in the coming year.
Information in motion
The growing investment in AI is driving a surge in demand for new data centers.
AI development and operation require substantial computing power, relying heavily on advanced chips and servers. Over the next five years, major data users like Google, Microsoft, and Meta could collectively invest up to $1 trillion in data center infrastructure, according to CCS Insight.
In Europe, data center capacity is projected to grow by an average of 9% annually between 2024 and 2028, as noted by property services firm Savills.
However, new data centers are unlikely to emerge in traditional hubs such as London, Frankfurt, or Amsterdam. High land costs—reaching up to £17 million per acre in London—and limited electricity supplies are prompting developers to explore alternative locations.
In the UK, cities like Cambridge, Manchester, and Birmingham are likely candidates for the next wave of data center construction. Meanwhile, European cities such as Prague, Genoa, Munich, Dusseldorf, and Milan are also expected to attract interest.
Hot property – tech firms will be scrambling to get Nvidia’s new computer chip
Central to many of these new data centers will be Nvidia’s cutting-edge computer chip, the Blackwell, which dominates the AI chip market.
Revealed in March 2024, the Blackwell chip is set to begin large-scale shipping in 2025. According to Vivek Arya, senior semiconductors analyst at Bank of America Securities, the chip promises to accelerate AI training by four times and improve AI performance by up to 30 times compared to current chips.
Tech giants like Microsoft, Amazon, Meta, and Coreweave are expected to receive early access to the technology. However, other customers may face challenges securing the Blackwell chip, as Mr. Arya notes that supply will likely remain constrained throughout 2025.
Emily Martinez
