AI’s Growing Importance: Projections for What Remains of 2025

By Alex Rutter, Managing Director for AI at Google Cloud.

  • Saturday, 7th June 2025 Posted 3 weeks ago in by Phil Alsop

Increasingly, we are seeing the technological frontier being shaped by those embracing Artificial Intelligence early on. Generative AI, multimodal systems, and AI agents, are rapidly becoming essential tools for content creation, knowledge dissemination, and operational efficiency.

For small and medium-sized businesses (SMBs), AI's capabilities are levelling the playing field, unlocking competitive strategies previously out of reach. There are four key areas in which AI is poised to make a significant impact.

1. Establishing Centralised Knowledge Hubs

A unified knowledge management system is crucial for any organisation planning to scale. Ideally, such systems consolidate customer data, market trends, and internal expertise. However, many companies still rely on outdated systems that can impede access to vital information and detract from the customer experience. Google's research highlights this inefficiency, noting that employees often consult four to six different tools to find a single answer.

Consequently, businesses are increasingly adopting enterprise search platforms and knowledge management tools that provide a single integrated source of truth. AI agents operating within these frameworks enable employees to request information with precision, automate workflows, and generate initial drafts for various content needs.

2. Staying Agile, with Real-Time Information

The ability to quickly access and share real-time information is paramount for sustaining a competitive edge.

Throughout the rest of 2025, AI is expected to profoundly influence business activities. AI's ability to process and react to information instantly, often using technologies like streaming APIs integrated with Large Language Models (LLMs), will optimise numerous internal and external processes. For instance, internal workflows can be streamlined through live document updates and using real-time performance dashboards. Externally, this real-time capability is elevating the customer experience, making interactions more relevant and timely (such as providing instant updates on order status or offering support based on current website activity), thereby strengthening brand allegiance.

3. Enhancing Customer Relationships A significant majority of consumers (61%) now anticipate a personalised experience during brand interactions, desiring recognition and tailored engagement.

Generative AI can help meet this demand by generating customised insights about consumers for human agents. This allows for a deeper understanding and prediction of customer behaviour. By developing detailed customer profiles founded on behavioural data and purchase history, businesses can operate with greater foresight, preparedness, and consistency – capabilities that were often difficult to achieve previously. This enhanced service level naturally fosters increased customer loyalty and engagement.

4. Unlocking Creative Potential through Personalisation

Today's consumers have a strong preference for personalisation. A crowded marketplace demands the capturing of attention. To achieve this, businesses must make an immediate, relevant impression by demonstrating an instant understanding of individual needs and preferences. This necessitates moving beyond traditional approaches.

Generative AI, when utilised with robust customer insights and business data, empowers companies to refine processes, optimise workflows, and produce highly engaging content. Technologies such as Imagen 3 and Google Cloud’s Veo are reshaping targeted marketing, equipping brands to fluidly adjust to evolving consumer trends.

Conclusion

AI is set to significantly reshape the business landscape throughout the remainder of 2025, particularly for SMBs seeking competitive advantages. By centralising knowledge, leveraging real-time data, deepening customer relationships through personalisation, and unlocking new creative potential, AI offers powerful tools for growth and efficiency. While adoption requires strategic planning and investment, the organisations proactively integrating these AI capabilities are positioning themselves for greater agility and success in an increasingly dynamic market.

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