2024 was a year marked by intense AI-driven innovation. While the hype surrounding AI may have reached a fever pitch, the technology’s transformative potential is undeniable.
The growing interest in AI can be attributed to several factors: the democratisation of AI, with tools and platforms now accessible to businesses of all sizes; AI’s appeal to business leaders, offering actionable insights and process automation; and aggressive marketing by major tech companies, which has amplified the excitement and hype surrounding AI.
2025 will be a year defined by AI, with its transformative impact rippling across industries. However, other geopolitical and social factors will also significantly shape the tech landscape.
Ecosystm analysts Achim Granzen, Alan Hesketh, Audrey William, Clay Miller, Darian Bird, Manish Goenka, Richard Wilkins, Sash Mukherjee, Simona Dimovski, and Tim Sheedy present the key trends and disruptors shaping the tech market in 2025.
Click here to download ‘Key Tech Trends & Disruptors in 2025’ as a PDF
1. Quantum Computing Will Drive Major Transformation in the Tech Industry
Advancements in qubit technology, quantum error correction, and hybrid quantum-classical systems will accelerate breakthroughs in complex problem-solving and machine learning. Quantum communications will revolutionise data security with quantum key distribution, providing nearly unbreakable communication channels. As quantum encryption becomes more widespread, it will replace current cryptographic methods, protecting sensitive data from future quantum-enabled attacks.
With quantum computing threatening encryption standards like RSA and ECC, post-quantum encryption will be critical for data security.
While the full impact of quantum computers is expected within the next few years, 2025 will be pivotal in the transition toward quantum-resistant security measures and infrastructure.
2. Many Will Try, But Few Will Succeed as Platform Companies
Hypergrowth occurs when companies shift from selling products to becoming platform providers. Unlike traditional businesses, platforms don’t own inventory; their value lies in proprietary data and software that connect buyers, sellers, and consumers. Platforms disrupt industries and often outperform legacy businesses, with examples like Uber, Amazon, and Meta, and disruptors like Lemonade in insurance and Wise in international funds transfer.
In 2025, many companies will aim to become platform businesses, with AI seen as a key driver.
They will begin creating platforms and building ecosystems around them – some within existing brands, others launching new ones or even new subsidiaries to seize this opportunity.
3. A Trans-Atlantic Divide Will Emerge in AI Regulation
The EU is poised to continue its rigorous approach to AI regulation, emphasisng ethical considerations and robust governance. This is evident in the recent AI Act, which imposes stringent guidelines and penalties for violations. The EU’s commitment to responsible AI development is likely to lead to a more cautious and controlled innovation landscape.
In contrast, the US, under a new administration, may adopt a more lenient regulatory stance towards AI. This shift could accelerate innovation and foster a more permissive environment for AI development. However, it may also raise concerns about potential risks and unintended consequences.
This divergence in regulatory frameworks could create significant challenges for multinational companies operating in both regions.
4. The Rise of AI-Driven Ecosystem Platforms Will Shape Tech Investments
By 2025, AI-driven ecosystem platforms will dominate tech investments, fueled by technological convergence, market efficiency demands, and evolving regulations. These platforms will integrate AI, IoT, cloud, and data analytics to create seamless, predictive ecosystems that transcend traditional industry boundaries.
Key drivers include advancements in AI, global supply chain disruptions, and rising ESG expectations. Regulatory shifts, such as the EU’s AI Act, will further push for compliant, ethical platforms emphasising transparency and accountability.
For businesses, this shift redefines technology as interconnected ecosystems driving efficiency, innovation, and customer value.
5. AI-Powered Data Fabrics Will be the Foundation for Data-Driven Success
In 2025, AI-powered data fabrics will become a core technology for large organisations.
They will transition from basic data management tools to intelligent systems that deliver value across the entire data lifecycle. Organisations will finally be able to get control of their data governance.
AI’s enhanced role will automate essential data functions, including intelligent data integration and autonomous connection to diverse data sources. AI will also enable proactive data quality management, predicting and preventing errors for improved reliability. AI-driven data fabrics will also offer automated data discovery and mapping, dynamic data quality and governance, intelligent data integration, and enhanced data access and delivery.
6. Focus Will Shift From AI Models to Intelligence Gaps & Performance
While many organisations are investing in AI, only those that started their transformation in 2024 are truly AI-led. Most have become AI-driven through embedded AI in enterprise systems as tech providers continue to evolve their offerings. However, these multi-vendor environments often lack synergy, creating gaps and blind spots.
In 2025, organisations will pause their investments to assess AI capabilities and identify these gaps.
Once they pinpoint the blind spots, investments will refocus not on new AI models, but on areas like model orchestration to manage workflows and ensure peak performance; vendor management to establish unified governance frameworks for flexibility and compliance; and eventually automated AI lifecycle management, with centralised inventories and monitoring to track performance and detect issues like model drift.
7. Specialised Small Language Models Will Gain Traction
GenAI, driven by LLMs, has dominated the spotlight, fueling both excitement and concerns about AI. However, LLM-based GenAI is entering a phase of diminishing returns, both in terms of individual model capabilities and the number of available models. Only a few providers will have the resources to develop LLMs, focusing on a limited number of models.
This will see the increased popularity of small language models (SLMs), that are tailored for a specific purpose, use case, or environment. These models will be developed by startups, organisations, and enterprises with deep domain knowledge and data. They will be fully commercialised driving narrow but distinct ROI.
There will be an increased demand for GPU-as-a-service and SLM-as-a-service, and the platforms which can support these.
8. Multi-agent AI Systems Will Help Manage Complexity and Collaboration
Isolated AI tools that can perform narrow tasks lack the adaptability and coordination required for real-time decision-making. Multi-agent systems, in contrast, consist of decentralised agents that collaborate, share information, and make independent decisions while working toward a common goal. This approach not only improves efficiency but also enhances resilience in rapidly changing conditions.
Early use cases will be in complex environments that require cooperation between multiple stakeholders.
Multi-agent systems will optimise logistics by continuously analysing disruptions and dynamically balancing supply and demand in energy grids. These multi-agent systems will also operate in competitive modes, such as algorithmic trading, ad auctions, and ecommerce recommender systems.
9. Super Apps Will Expand into Rural & Underserved Markets in Asia Pacific
Super apps are set to reshape rural economies, fueled by increased internet access, affordable tech, and heavy government investment in digital infrastructure. Their localised, all-in-one services unlock untapped potential in underserved regions, fostering inclusivity and innovation.
By 2025, super apps will deepen their reach across Asia, integrating communication, payments, and logistics into seamless platforms.
Leveraging affordable mobile devices, cloud-native technologies, and localised services, they will penetrate rural and underserved areas with tailored solutions like agricultural marketplaces, local logistics, and expanded government services. Enterprises investing in agile cloud infrastructure will drive this evolution, bridging the digital divide, boosting economic growth, and enhancing user experiences for millions.
10. Intense Debates Over Remote vs. In-Office Work Will Persist in Asia Pacific
Employers in Asia Pacific will enforce stricter return-to-office policies, linking them to performance metrics and benefits to justify investments in physical spaces and enhance workforce productivity.
However, remote collaboration will remain integral, even for in-office teams.
The push for human-centred tech will grow, focusing on employee well-being and flexibility through AI-powered tools and hybrid platforms. Companies will prioritise enhancing employee experiences with personalised, adaptable workspaces, while office designs will increasingly incorporate biophilic elements, blending nature and technology to support seamless collaboration and remote integration.
India’s digital journey has been nothing short of remarkable, driven by a robust Digital Public Infrastructure (DPI) framework known as the India Stack. Over the past decade, the government, in collaboration with public and private entities, has built this digital ecosystem to empower citizens, improve governance, and foster economic growth.
The India Stack is a set of open APIs and platforms that provide a foundation for large-scale public service delivery and innovation. It enables governments, businesses, startups, and developers to leverage technology to offer services to millions of Indians, especially those in underserved areas.
The India Stack is viewed as a layered infrastructure, addressing identity, payments, data, and services.
Click here to download The India Stack: A Foundation for Digital India as a PDF
Four Pillars of the Digital Stack
The four layers of India Stack include:
- Presenceless Layer. Aadhaar enables remote authentication, providing a digital ID that requires only a 12-digit number and a fingerprint or iris scan, eliminating the need for physical documents. It prevents duplicate and fake identities.
- Paperless Layer. Reliance on digital records, using Aadhaar eKYC, eSign, and Digital Locker. It enables secure digital storage and retrieval, creating a paperless system for verifying and accessing documents anytime, on any device.
- Cashless Layer. Led by NPCI, this aims to universalise digital payments. UPI enables instant, secure money transfers between bank accounts using a simple Virtual Payment Address (VPA), moving transactions into the digital age for transparency and ease of use.
- Consent Layer. Enables secure, user-controlled data sharing through electronic consent, allowing data to flow freely. The Account Aggregator ecosystem benefits most, with AA acting as a thin data aggregation layer between Financial Information Providers (FIPs) and Financial Information Users (FIUs).
The Impact of the India Stack
The India Stack has played a pivotal role in the country’s rapid digitalisation:
Financial Inclusion. Aadhaar-enabled payment systems (AePS) and UPI have significantly expanded financial access, increasing inclusion from 25% in 2008 to 80% in 2024, particularly benefiting rural and underserved communities.
Boost to Digital Payments. The India Stack has fuelled exponential growth in digital payments, with UPI processing 10 billion monthly transactions. This has driven the rise of digital wallets, fintech platforms, and digitisation of small businesses.
Better Government Services. Aadhaar authentication has improved the delivery of government schemes like Direct Benefit Transfers (DBTs), Public Distribution System (PDS), and pensions, ensuring transparency and reducing leakages.
The India Stack: A Catalyst for Startup Success
The India Stack is fuelling startup innovation by providing a robust digital infrastructure. It enables entrepreneurs to build services like digital payments, eCommerce, and financial solutions for underserved populations. Platforms such as Aadhaar and UPI have paved the way for businesses to offer secure, seamless transactions, allowing startups like Paytm and BharatPe to thrive. These innovations are driving financial inclusion, empowering rural entrepreneurs, and creating opportunities in sectors like lending and healthtech, supported by global and domestic investments.
From Local Success to Global Inspiration
The impact of the India Stack’s success is being felt worldwide. Global giants such as Google Pay, WhatsApp, and Amazon Pay are drawing inspiration from it to enhance their global payment systems. Alphabet CEO Sundar Pichai plans to apply lessons from Google Pay’s Indian experience to other markets.
While India Stack has achieved significant success, there is still room for improvement. Strengthening data privacy and security is crucial as personal data collection continues to expand. The Digital Personal Data Protection Act aims to address these issues, but balancing innovation with privacy protection remains a challenge.
Bridging the digital divide by expanding Internet access and improving digital literacy, especially for rural and older populations, is key to ensuring that everyone can benefit from the India Stack’s advantages.
With over 70% of the world’s population predicted to live in cities by 2050, smart cities that use data, technology, and AI to streamline services are key to ensuring a healthy and safe environment for all who live, work, or visit them.
Fueled by rapid urbanisation, Southeast Asia is experiencing a smart city boom with an estimated 100 million people expected to move from rural areas to cities by 2030.
Despite their diverse populations and varying economic stages, ASEAN member countries are increasingly on the same page: they are all united by the belief that smart cities offer a solution to the complex urban and socio-economic challenges they face.
Read on to discover how Southeast Asian countries are using new tools to manage growth and deliver a better quality of life to hundreds of millions of people.
ASCN: A Network for Smarter Cities
The ASEAN Smart Cities Network (ASCN) is a collaborative platform where cities in the region exchange insights on adopting smart technology, finding solutions, and involving industry and global partners. They work towards the shared objective of fostering sustainable urban development and enhancing livability in their cities.
As of 2024, the ASCN includes 30 members, with new additions from Thailand and Indonesia.
“The ASEAN Smart Cities Network provides the sort of open platform needed to drive the smart city agenda. Different cities are at different levels of developments and “smartness” and ASEAN’s diversity is well suited for such a network that allows for cities to learn from one another.”
Taimur Khilji
UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP)
Singapore’s Tech-Driven Future
The Smart Nation Initiative harnesses technology and data to improve citizens’ lives, boost economic competitiveness, and tackle urban challenges.
Smart mobility solutions, including sensor networks, real-time traffic management, and integrated public transportation with smart cards and mobile apps, have reduced congestion and travel times.
Ranked 5th globally and Asia’s smartest city, Singapore is developing a national digital twin to for better urban management. The 3D maps and subsurface model, created by the Singapore Land Authority, will help in managing infrastructure and assets.
The Smart City Initiative promotes sustainability with innovative systems like automated pneumatic waste collection and investments in water management and energy-efficient solutions.
Malaysia’s Holistic Smart City Approach
With aspirations to become a Smart Nation by 2040 (outlined in their Fourth National Physical Plan – NPP4), Malaysia is making strides.
Five pilot cities, including Kuala Lumpur and Johor Bahru, are testing the waters by integrating advanced technologies to modernise infrastructure.
Pilots embrace sustainability, with projects like Gamuda Cove showcasing smart technologies for intelligent traffic management and centralised security within eco-friendly developments.
Malaysia’s Smart Cities go beyond infrastructure, adopting international standards like the WELL Building Standard to enhance resident health, well-being, and productivity. The Ministry of Housing and Local Government, collaborating with PLANMalaysia and the Department of Standards Malaysia, has established clear indicators for Smart City development.
Indonesia’s Green Smart City Ambitions
Eyeing carbon neutrality by 2060, Indonesia is pushing its Smart City initiatives.
Their National Long-Term Development Plan prioritises economic growth and improved quality of life through digital infrastructure and innovative public services.
The goal is 100 smart cities that integrate green technology and sustainable infrastructure, reflecting their climate commitment.
Leaving behind congested Jakarta, Indonesia is building Nusantara, the world’s first “smart forest city“. Spanning 250,000 hectares, Nusantara will boast high-capacity infrastructure, high-speed internet, and cutting-edge technology to support the archipelago’s activities.
Thailand’s Smart City Boom
Thailand’s national agenda goes big on smart cities.
They aim for 105 smart cities by 2027, with a focus on transportation, environment, and safety.
Key projects include:
- USD 37 billion smart city in Huai Yai with business centres and housing for 350,000.
- A 5G-powered smart city in Ban Chang for enhanced environmental and traffic management.
- USD $40 billion investment to create a smart regional financial centre across Chonburi, Rayong, and Chachoengsao.
Philippines Fights Urban Challenges with Smart Solutions
By 2050, population in cities is expected to soar to nearly 102 million – twice the current figure.
A glimmer of optimism emerges with the rise of smart city solutions championed by local governments (LGUs).
Rapid urbanisation burdens the Philippines with escalating waste. By 2025, daily waste production could reach a staggering 28,000 tonnes. Smart waste management solutions are being implemented to optimise collection and reduce fuel consumption.
Smart city developer Iveda is injecting innovation. Their ambitious USD 5 million project brings AI-powered technology to cities like Cebu, Bacolod, Iloilo, and Davao. The focus: leverage technology to modernise airports, roads, and sidewalks, paving the way for a more sustainable and efficient urban future.
Southeast Asia’s massive workforce – 3rd largest globally – faces a critical upskilling gap, especially with the rise of AI. While AI adoption promises a USD 1 trillion GDP boost by 2030, unlocking this potential requires a future-proof workforce equipped with AI expertise.
Governments and technology providers are joining forces to build strong AI ecosystems, accelerating R&D and nurturing homegrown talent. It’s a tight race, but with focused investments, Southeast Asia can bridge the digital gap and turn its AI aspirations into reality.
Read on to find out how countries like Singapore, Thailand, Vietnam, and The Philippines are implementing comprehensive strategies to build AI literacy and expertise among their populations.
Download ‘Upskilling for the Future: Building AI Capabilities in Southeast Asia’ as a PDF
Big Tech Invests in AI Workforce
Southeast Asia’s tech scene heats up as Big Tech giants scramble for dominance in emerging tech adoption.
Microsoft is partnering with governments, nonprofits, and corporations across Indonesia, Malaysia, the Philippines, Thailand, and Vietnam to equip 2.5M people with AI skills by 2025. Additionally, the organisation will also train 100,000 Filipino women in AI and cybersecurity.
Singapore sets ambitious goal to triple its AI workforce by 2028. To achieve this, AWS will train 5,000 individuals annually in AI skills over the next three years.
NVIDIA has partnered with FPT Software to build an AI factory, while also championing AI education through Vietnamese schools and universities. In Malaysia, they have launched an AI sandbox to nurture 100 AI companies targeting USD 209M by 2030.
Singapore Aims to be a Global AI Hub
Singapore is doubling down on upskilling, global leadership, and building an AI-ready nation.
Singapore has launched its second National AI Strategy (NAIS 2.0) to solidify its global AI leadership. The aim is to triple the AI talent pool to 15,000, establish AI Centres of Excellence, and accelerate public sector AI adoption. The strategy focuses on developing AI “peaks of excellence” and empowering people and businesses to use AI confidently.
In keeping with this vision, the country’s 2024 budget is set to train workers who are over 40 on in-demand skills to prepare the workforce for AI. The country will also invest USD 27M to build AI expertise, by offering 100 AI scholarships for students and attracting experts from all over the globe to collaborate with the country.
Thailand Aims for AI Independence
Thailand’s ‘Ignite Thailand’ 2030 vision focuses on boosting innovation, R&D, and the tech workforce.
Thailand is launching the second phase of its National AI Strategy, with a USD 42M budget to develop an AI workforce and create a Thai Large Language Model (ThaiLLM). The plan aims to train 30,000 workers in sectors like tourism and finance, reducing reliance on foreign AI.
The Thai government is partnering with Microsoft to build a new data centre in Thailand, offering AI training for over 100,000 individuals and supporting the growing developer community.
Building a Digital Vietnam
Vietnam focuses on AI education, policy, and empowering women in tech.
Vietnam’s National Digital Transformation Programme aims to create a digital society by 2030, focusing on integrating AI into education and workforce training. It supports AI research through universities and looks to address challenges like addressing skill gaps, building digital infrastructure, and establishing comprehensive policies.
The Vietnamese government and UNDP launched Empower Her Tech, a digital skills initiative for female entrepreneurs, offering 10 online sessions on GenAI and no-code website creation tools.
The Philippines Gears Up for AI
The country focuses on investment, public-private partnerships, and building a tech-ready workforce.
With its strong STEM education and programming skills, the Philippines is well-positioned for an AI-driven market, allocating USD 30M for AI research and development.
The Philippine government is partnering with entities like IBPAP, Google, AWS, and Microsoft to train thousands in AI skills by 2025, offering both training and hands-on experience with cutting-edge technologies.
The strategy also funds AI research projects and partners with universities to expand AI education. Companies like KMC Teams will help establish and manage offshore AI teams, providing infrastructure and support.