A common thread appears to be laced throughout each article anticipating the new year. When looking forward to 2025, the Santa Cruz Works team and I predict an unprecedented rise in technological advancement, greener solutions, and transformative shifts in the business landscape. We have mainly highlighted AI’s prominent role in our evolving future. Gradual AI integration into our professional, academic, and daily lives in 2024 will only continue to grow, shaping how we work, learn, and connect. From streamlining workplace operations to enhancing decision-making, AI’s impact will be both profound and far-reaching.

Indeed, I am preaching to the choir when I say that all eyes are on AI come 2025. But what do the AI systems we rely on predict will happen in the new year? Informed by their sophisticated algorithms, this technology is uniquely positioned to offer glimpses into our exciting future—no time machine required. When I prompted ChatGPT to share its insights on what the future might hold, here are some highlights of what it shared.

1. Artificial Intelligence (AI)

Generative AI:
- AI tools like ChatGPT and others will become more specialized, catering to specific industries such as legal, healthcare, and education.
- Real-time AI language translation and voice synthesis will revolutionize international communication.
- Ethical AI frameworks will gain prominence, with more governments introducing legislation to ensure transparency and fairness in AI algorithms.
AI in Creativity:
- AI-generated content (art, music, writing) will become indistinguishable from human-created work, sparking debates around copyright and originality.
- Collaboration between human creators and AI tools will define the next wave of innovation in creative industries.

2. Quantum Computing

Companies like IBM, Google, and startups in the quantum space will make strides in applying quantum computing to solve real-world problems, including optimization, drug discovery, and complex simulations.
More accessible cloud-based quantum platforms may allow businesses and researchers to leverage quantum tools without owning quantum hardware.

3. Augmented Reality (AR) & Virtual Reality (VR)

Consumer AR/VR will become more accessible, fueled by devices like Apple Vision Pro and other competitors.
Immersive work environments using AR/VR will redefine remote work, creating “digital offices” and new ways to collaborate.

4. Financial Technology (FinTech)

Decentralized finance (DeFi) will grow as blockchain technology becomes mainstream, supported by regulated digital currencies (CBDCs).
AI-powered robo-advisors will become more sophisticated, offering personalized investment strategies for individuals.
Cross-border payments will become faster and cheaper due to blockchain integration.

5. Startups & Venture Capital

AI and green tech startups will dominate funding rounds.
Health tech (focused on telemedicine, wearable health devices, and personalized medicine) will attract significant investment.
Agri-tech startups will focus on vertical farming, precision agriculture, and sustainable food production.

Photo by: Emiliano Vittoriosi (Unsplash)

If you have kept up to date with the latest articles in the Santa Cruz Works newsletters, these items come as no surprise. We’ve explored the ongoing dialogue surrounding AI’s role in ethical dilemmas, including concerns about copyright infringement, plagiarism, and reference hallucinations. Specifically, Perplexity and Chat GPT have come under fire for breaching ethical morality standards, which will likely be remedied in the coming months. Similarly, as AI continues to expand its influence into creative fields such as art, graphic design, and game development, it’s reasonable to expect that developers will emphasize embedding morality and ethics into their frameworks. Beyond these concerns, this technology also has plenty of implications for the world of virtual reality, as World Labs has readily proven in 2024! We can only begin to imagine the remarkable strides AI-driven world-building will achieve in the coming year.

Quantum computing is another fascinating field we have only brushed the surface of. Google’s latest quantum chip, Willow, represents a groundbreaking step forward in this rapidly evolving technology—a leap that is certain to inspire even more advancements in 2025.

Financial Technology (FinTech) has also claimed a special spotlight in 2024, and will continue to command national attention in the new year. Santa Cruz’s own Paystand is a leader in Business-to-Business (B2B) blockchain payments, eliminating transaction fees and streamlining the process for businesses to receive payments automatically. This year, the company made significant strides in innovating its systems, enhancing accessibility for marginalized groups, and solidifying its position as a top player in the financial technology (fintech) industry. This trend will likely continue into 2025, as FinTech companies like Paystand push the boundaries of innovation.

Likewise, 2024 was a big year for lucrative funding rounds for local startups, including Santa Cruz’s Zero Motorcycles, who lead the market on electric motorcycle alternatives, and Capstan Medical, a developer of robotic-enabled minimally invasive solutions to address heart valve disease. Having secured millions in funding for their transformative innovations, these startups are tackling critical issues such as sustainable transportation and advanced healthcare solutions. Companies within these realms will likely continue to dominate funding rounds as investors seek to foster a more equitable world.

What do you predict 2025 will bring? Do you think these AI predictions will hold true, or will unforeseen challenges and innovations reshape the trajectory of these advancements? Let’s find out as we warmly welcome 2025!

AI’s Vision for 2025