Predictions 2025

Here are my 4 predictions of how 2025 will play out

1. Shutdown - Thousands of "me too" AI application companies will shutdown.

2. Acquisitions Surge - AI companies with valuable IP, but struggling to scale will get acquired

3. Vertical AI Takes Off -  Industry-specific AI companies will gain significant traction as customers increasingly recognize their tailored value propositions.

4. Beginning of Consumer AI - We will see initial use cases of Consumer AI in the content space.

Details

1. Shutdown - Thousands of "me too" AI application companies will shutdown.

   1. Some of them started in 2023 and many in 2024.

   2. But without product differentiation, such companies will struggle fail.

   3. Moreover, LLMs are building some of these applications as their in-built features

2. Acquisitions Surge - AI companies with valuable IP, but struggling to scale will get acquired

   1. Companies that have great tech, but failed to grow in 2024/Q1 2025 will look for acquisition opportunities

   2. Founders have great tech background

   3. SaaS companies will mostly acquire such companies

3. Vertical AI Takes Off -  Industry-specific AI companies will gain significant traction as customers increasingly recognize their tailored value propositions.

   1. 2025 will seen a huge surge of vertical AI companies

   2. Traditional / Antiquated industries will see tens of companies building unique products across value chain

   3. No single company will build a complete Vertical AI stack for an industry

4. Beginning of Consumer AI - We will see initial use cases of Consumer AI in the content space.

   1. Starting with Content/Entertainment, consumer AI will see some unique use cases

   2. Users spend majority of their time on audio/video. We will see next TikTok / Insta seeing in 2025

   3. Browser Agents is the only other area where I expect a few success stories