AI in 2025: AI Milestones in 2025 and what to expect in 2026

As we wrap up 2025, we should also stop and think about how much Artificial Intelligence has changed. Most importantly we should think about how much more it has become a part of our daily lives and the business world. This year has been a year for Artificial Intelligence it has gone from being something that people thought was not possible to actually happening, with many major AI milestones in 2025. Because of these developments, Artificial Intelligence has grown beyond experimentation, it now stands as the center of innovation, creativity and strategy. AI can also be thanked for the increased productivity and efficiency of not only businesses but also in personal affairs.

The conversations people had about AI were largely speculative. Then, as if by the wave of a magic wand, AI is in our pockets, and reliance on it is increasing every day. But no, it’s not magic. This is only proof that in the years to come, the use of AI will be way more than today.
Before we look at what AI has for us in 2026, let us take a ride into the not-so-distant past to revisit the major AI milestones in 2025. We will also see how these developments have contributed to the industry as a whole.

Specific AI milestones in 2025: an AI recap

Developments in AI in 2025 have not being focused on just smarter systems, these developments have also focused on safety, accessibility and the integration of AI systems in the real-world. Here are some of the major moments in AI in 2025;

Widespread of multimodal AI

The use of multimodal AI did not begin in 2025. However, multimodal AI say a widespread adoption in 2025 than ever before. Unlike traditional AI systems that are limited to a single modality, multimodal AI systems can interpret multiple types of input data simultaneously even if it’s a mix of these data. This advancement has been enabled by developments in architectures, better training data and more powerful computing infrastructure. In 2025, the industry became more powerful, in terms of hardware and algorithm to support these complex multimodal systems

Personalization of AI

AI personalization has come a long way, but all the efforts prior to 2025 only gave room for more personalization as we have seen this year. AI systems did not just mature this year they become closer to the end users. For example, context aware AI assistants learned user routines and fine-tuned their responses and actions to align with these routines. In addition, search behavior shifted from plain generic response towards conversational answering.

The rise of AI agents

In a survey by McKinsey, a larger percentage of the respondents reported using AI in their organizations. Out of these respondents, 62% say their organizations are at least experimenting with AI agents. 23% report their organizations are scaling an agentic AI system somewhere in their enterprise. Another 39% say they have begun experimenting with AI agents but its use is not yet widespread. This indicates the rise in the adoption of AI agents this year. However, this widespread use is mostly seen in industries like technology, media and telecommunications, and healthcare.

Thinking AI models

In 2025, we saw a new innovation where AI systems begun to think, almost like humans. Thinking AI models use an internal thinking process that improves their reasoning and multi-step planning abilities. This has made AI models are highly efficient and are effective for complex tasks such as coding, advanced mathematics, and data analysis. In addition to the intricate nature of their reasoning, they also process information with speed.

Government regulation about AI

Globally, governments and regulatory bodies are beginning to implement and adopt artificial intelligence. Investments and incentives from government to encourage the growth of artificial intelligence in 2025 has also greatly improved. Saudi Arabia easily comes to mind when thinking about government involvement in artificial intelligence. The government’s Project Transcendence, a $100 billion initiative has set the stage for the country to become one of the world’s leading forces in artificial intelligence. Several countries like the U.S and China are also quickly becoming global leaders in artificial intelligence.

What is the impact of all these developments on the industry?

The changes in the industry has also led to, many changes in AI and the use of AI. Firstly, the relationship between humans and AI has improved greatly in that AI has become a household tool. Rather than viewing AI as a competition, AI milestones in 2025 have strengthened the narrative of augmentation. Therefore, professionals and creatives around the world have embraced AI in their workflows which has reportedly improved their efficiency. Also, AI has become a priority in strategies implemented by organizations and boardrooms globally.
Furthermore, the reliability in AI systems have improved which has resulted in more government policies being implemented in favor of AI systems. In addition, ethics, transparency, and accountability in AI is now an important consideration when developing AI systems. The industry is now building AI systems that are explainable, and responsible.

What to expect in 2026?

All the AI milestones in 2025 lead somewhere. It begs the question, “what is next for AI in 2026?” Here is what we expect to see in the AI industry in 2026.

• Even more advanced multimodal AI
  AI systems will become better at understanding more contexts across multiple formats. The interactions will feel more natural, intuitive and continuous even across devices.
• Growth in AI workforce integration
  In the coming year, AI is set to be built more around workforce roles. AI collaboration in the work place will increase, and AI-enhanced productivity will also increase driving stronger emphasis on reskilling and upskilling.
• Improved safety and regulation
  Regulations around AI systems are still new, and there are loopholes yet to be fixed. In 2026, more regulatory frameworks will be put in place. Therefore, we should expect clearer global standards and compliance. Governments around the world will also be more open to dialogues with AI developers to create policies that encourage AI adoption.
• Smaller, smarter, and more efficient AI
  Some of the first AI tools were as large as a standard room. Almost, a century down the line, we carry AI in our pockets. But it could get smaller!
• Even more personalization!
  Personalization will keep going. However, even with personalization, privacy must be maintained. Therefore, as personalization increases, privacy protection also increases.

Conclusion

2025 will definitely be remembered as a year of AI. We have seen thinking models, we have seen multimodal AI, we have also seen more government compliance to AI. But is there more? What else should we expect from AI?
2026 is set to be another great year for AI. Already, investors are looking at transforming the economy using Artificial Intelligence. Paired with the ongoing creativity and discovery in AI, 2026 promises to be an interesting year in this industry.
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