Will 2025 Be the Year of AI Agents?

Dear Tech Friends,

Welcome to the latest edition of BCG X Files, where we explore the ideas and innovations shaping the future of technology and AI.

This year, Davos highlighted something that’s becoming increasingly clear: AI is no longer just a promising technology—it’s a central focus for businesses across the globe. Our latest research shows that 75% of executives rank AI among their top three strategic priorities, with budgets set to grow by 60% by 2027. Yet only 25% of leaders say their investments in AI are delivering the value they expect.

That’s where AI agents come in. These systems—designed to observe, plan, act, and learn with minimal human input—are helping businesses take AI to the next level. They’re not just automating processes; they’re rethinking how companies work, from revitalizing R&D to improving customer engagement and beyond.

What sets the leaders apart, though, is how they’re using AI. Instead of focusing on generic, off-the-shelf solutions, they’re dedicating 80% of their AI budgets to transforming core business functions. This pragmatic and tailored approach is unlocking real impact—beyond efficiency, it’s helping businesses innovate and stay competitive.

That said, making AI work isn’t without challenges. To succeed, businesses need to address some key questions:

• Are workflows set up to make the most of AI agents?
• Do teams have the right skills and tools to collaborate effectively with these systems?
• Are clear goals and metrics in place to track AI’s impact on the business?

These questions may not always have simple answers, but they’re essential to ensuring AI delivers meaningful results.

Our latest report dives into these challenges and opportunities, with insights from 1,800 executives across 19 markets and 12 industries. It’s an inspiring look at how companies are navigating this rapidly evolving landscape. Dive deeper to explore what’s next here.

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Enjoy!

-Sylvain Duranton, Global Leader of BCG X

Goldilocks and the AI Revolution: Why Mid-Sized Companies May be ‘Just Right’ for GenAI Adoption | Fortune - 8 min read

Generative AI has been a playground for tech giants, but mid-sized companies are emerging as GenAI frontrunners, leveraging agility, lean operations, and accessible AI tools to outpace larger, slower competitors. With AI-as-a-service and private equity backing, they’re driving innovation, upskilling teams, and transforming operations—unlocking a golden opportunity for growth.

Introducing Operator | OpenAI - 6 min read

OpenAI has introduced Operator, an AI agent capable of navigating the web to complete tasks like filling out forms, ordering groceries, and personalizing workflows. It interacts with websites by clicking, typing, and scrolling, mimicking human behavior. Currently available to Pro users in the U.S., it marks a significant step toward AI-driven efficiency in everyday digital tasks.

The Next Great Leap in AI Is Behind Schedule and Crazy Expensive | WSJ - 12 min read

OpenAI’s GPT-5 project, codenamed Orion, faces delays, skyrocketing costs, and data limitations, casting doubt on its ambitious goals. Despite high expectations for it to surpass GPT-4 and drive AI innovation, technical setbacks and internal struggles have slowed progress. OpenAI is pivoting from scaling data to focusing on reasoning-based AI to enhance performance. However, questions remain about whether GPT-5 can meet its lofty promises—or when it will even be ready.

How Digital and AI Will Reshape Health Care in 2025 | BCG - 5 min read

AI is set to transform health care in 2025, advancing personalized care, real-time monitoring, and automated workflows. Smart wearables will enable remote health tracking, while generative AI delivers faster, more accurate diagnoses and tailored treatments. Women’s health tech will address long-standing care gaps, and AI-driven systems will improve collaboration and outcomes across the health care ecosystem.

How AI Agents Are Opening the Golden Era of Customer Experience | BCG - 12 min read

The convergence of generative AI, advanced hardware, and autonomous agents is transforming customer experience (CX) and productivity. Companies are moving from traditional customer journeys to AI-driven "customer missions," where agents handle tasks seamlessly. This shift offers personalized interactions, efficiency gains, and financial growth, marking a new era in CX innovation.

Meta's New Translation AI Is Nearly a Babel Fish | IEEE Spectrum - 3 min read

Meta’s SeamlessM4T AI system brings the dream of a universal translator closer to reality, enabling instant speech and text translation in up to 101 languages. It delivers improved accuracy, noise resilience, and the ability to handle mixed-language utterances, surpassing previous systems. Despite its advancements, challenges remain, including limited language coverage (100+ out of 6,500 globally) and unresolved gender bias in translations. Meta is using the technology for auto-dubbing and smart glasses while sharing tools to spur further innovation.

Why “Living Intelligence” Is the Next Big Thing | Harvard Business Review - 9 min read

"Living intelligence" is a transformative force arising from the convergence of AI, advanced sensors, and biotechnology. These interconnected technologies enable systems to sense, learn, adapt, and evolve, driving exponential innovation. While AI often takes the spotlight, the quiet advances in sensors and biotech are equally vital in reshaping industries and creating new markets. Leaders who focus solely on AI risk missing the broader disruption these integrated technologies will bring.

Climate Adaptation: Unlocking Value Chains with the Power of Technology | BCG - 5 min read

Research from BCG and the World Economic Forum emphasizes the role of technology in addressing climate risks. By leveraging collaborative platforms, businesses can share data, foster innovation, and strengthen value chains. These tech-driven approaches offer a pathway to build resilience and adapt to a rapidly changing climate.

How Watch Duty’s Wildfire Tracking App Became a Crucial Lifeline for LA | The Verge - 6 min read

Watch Duty, a nonprofit app, has become essential during Southern California’s wildfires, offering real-time updates on fires, evacuations, and air quality without ads or data tracking. Built by volunteers for speed and accuracy, the app sends push notifications within a minute, helping over 1.5 million users stay safe. As it plans to expand nationwide, Watch Duty is reshaping how emergency alerts are delivered, prioritizing lives over profits.

Mistral Signs AFP Deal for Fact-Based Chatbot in Riposte to ‘Free Speech’ Rivals | Financial Times - 4 min read

Mistral, a leading AI company in Europe, has partnered with Agence France-Presse (AFP) to bring thousands of its news articles into Mistral’s chatbot, Le Chat. This unique collaboration is seen as a way to promote fact-based journalism and challenge the influence of big Silicon Valley tech companies. As AFP looks to replace revenue from ending contracts with Meta, this partnership marks a fresh approach to combining AI with trusted news sources.

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