The state of AI in 2025 is characterized by rapid growth, innovation, and increasing adoption across industries. According to McKinsey's Global Survey on AI, over three-quarters of respondents now say their organizations use AI in at least one business function, with generative AI (gen AI) use rapidly increasing.
The adoption of gen AI is becoming more widespread, with 71% of respondents saying their organizations regularly use it in at least one business function. Companies are redesigning workflows, elevating governance, and mitigating risks to capture value from gen AI.
CEO oversight of AI governance is correlated with higher bottom-line impact from gen AI use, particularly in larger companies. Organizations are also hiring for new AI-related roles and reskilling existing employees to keep up with the demand for AI expertise.
The applications of AI are diverse, ranging from document parsing and analysis to customer service and content generation. Text remains the dominant modality, but images, audio, and video are gaining traction.
As AI continues to evolve, organizations are addressing gen-AI-related risks, including inaccuracy, cybersecurity, and intellectual property infringement. While gen AI use is increasing, most organizations haven't yet seen tangible bottom-line impacts.
Looking ahead, agentic AI is expected to be a key frontier for AI innovation. As the technology continues to advance, it's likely to have a significant impact on businesses and society as a whole.
