Emerging AI technologies such as causal AI, which Gartner defines as “a solution that identifies and utilizes cause-and-effect relationships to go beyond correlation-based predictive models and toward AI systems that can prescribe actions more effectively and act more autonomously,” are set to revolutionize traditional approaches and will have a positive impact across the board this year. From helping to discover untapped revenue and determining appropriate reinvestment strategies to improving overall customer engagement, causal AI enables businesses to make informed, accurate decision-making derived from experimentations and insights across virtually every industry.
As organizations seek to uncover revenue that may be hiding in their data in 2025, expect to see the following trends:
New AI Technologies Will Disrupt Current, Longtail Digital Transformation Strategies
Enterprises have spent decades implementing modern technologies to support digital transformation strategies and drive business value. However, integrating and implementing these bespoke technologies takes considerable time and effort with marginal returns compared to what’s possible with newer AI methods. The promise of GenAI has also been tapered down with growing concerns about data privacy, security, hallucinations, and bloated development and computing costs.
In 2025, CFOs will partner with CMOs and CIOs to implement enterprise-ready tools such as causal AI to impact P&L and immediately drive profits, continuously improving results over time. Stakeholders, including the C-suite, will see an immediate impact on the bottom line due to causal AI’s ability to asynchronously conduct rapid, vast experimentation for every individual customer at a massive scale. As a result, this year will be the year of causation rather than mere correlation.
Causal AI Will Crack the Holy Grail of Pricing – Enabling Businesses to Reach New Levels of Revenue
Predictive analytics and statistical models have historically provided valuable insights into customer behavior and market trends. While illuminating patterns, they leave a critical gap between insight and actionable decisions – particularly for millions of unique customers.
In 2025, causal AI will redefine pricing strategies with continuous learning to uncover true price elasticity and determine the “right” price for each customer. This isn’t just about adjusting prices in response to broad trends; it’s about understanding how individual customers respond to different price points, even in scenarios where incentives and conditions have never been tested.
Unlike traditional methods, which identify correlations, causal AI reveals causation – allowing businesses to experiment and learn continuously at scale. Causal AI enables businesses to move beyond predicting outcomes to prescribing precise actions that optimize customer value and business performance.
Businesses looking to determine causation rather than mere correlation will address critical enterprise challenges in ways traditional analytics cannot. By leveraging causal AI, forward-thinking companies will deliver adaptive, individualized pricing strategies that align with customer needs and drive sustainable revenue growth.
Rapid Consolidation of GenAI Vendors Will Increase as Businesses Focus on Revenue Growth
We will continue to see rapid consolidation in the GenAI sector. Several factors will accelerate this trend, including rising development and computing costs, as well as the risk of hallucinations and biases that can erode trust. In 2025, all AI initiatives, including GenAI projects, will face growing pressure to demonstrate measurable P&L impact. Use cases that deliver revenue gains will outshine early applications like automation and personnel redundancy.
Meanwhile, venture capitalists will reduce their appetite to invest in GenAI companies, riding the wave of mergers and acquisitions that will absorb those with tangible value. This consolidation will shift the narrative from workforce reduction to enabling growth and profitability. Enterprises and VCs will pivot toward more positive AI investments that deliver on the promise to create new P&L opportunities.
This year, causal AI will empower teams to create significant, measurable business value and foster a dynamic where they become integral to the organization’s value. Organizations will shift their attention to scaling month-over-month and year-over-year growth, creating a more sustainable and compelling case for ongoing AI investment. This evolution will establish AI as a critical driver of profitability and long-term organizational success.
Final Thoughts on 2025
To implement these key technological components successfully this year, organizations will rely on experienced AI teams to build out these systems and platforms at other large enterprises, factoring in necessary regulatory and security guardrails and leveraging team members who have “been there, done that.” Enterprises will accelerate development by leveraging their experience and learning so that companies don’t have to start from scratch.
With the right enterprise-ready system and algorithms, companies can generate new profits within a few weeks, not years down the road. By taking these three trends into account, they will finally be able to leverage technology to tackle business problems that were previously not possible.