EY report highlights AI trends & challenges for 2025
EY Consulting has unveiled its latest edition of Transformation Insider, which explores the evolving trends and pressing issues surrounding artificial intelligence (AI) in 2025. The publication aims to provide tech-centric media with curated insights into the dynamic arena of digital transformation, focusing on AI's impact on various industries and the challenges it poses.
Jeremy Pizzala, the Asia-Pacific Cybersecurity Consulting Leader at EY, highlighted the importance of safeguarding generative AI (GenAI) against risks such as data breaches, model manipulation, and compliance failures. "Early integration of security is non-negotiable to prevent criminal exploits, especially in high-stakes areas like trading algorithms," Pizzala stated. He also noted GenAI's dual role in revolutionising cyber defence with real-time threat analysis while simultaneously providing cybercriminals with sophisticated tools for phishing, deep fakes, and malware. "The race to harness GenAI's potential while countering its threats has never been more urgent," he added.
Dr Sooyeon Kim, who leads the Asia-Pacific Technology Consulting Artificial Intelligence division, addressed AI's capability to convert vast datasets into actionable insights, thus streamlining complex tasks and facilitating strategic decision-making. "However, its power hinges on continuous model monitoring, retraining, and human intervention to overcome inherent limitations and adapt to evolving data dynamics," Dr Kim explained. She emphasised the necessity of AI literacy for business leaders to comprehend the strengths and constraints of AI, allowing them to identify precise use cases and guide its implementation effectively.
Neil Cherry, the Asia-Pacific Consulting Technology Field of Play Leader, drew attention to the escalating energy demands of AI and the vital challenge this presents. "AI's growing energy demands present a critical challenge, yet its transformative potential in sustainability is undeniable," Cherry commented. AI has the potential to revolutionise renewable energy, waste management, and supply chain efficiency, driving innovation in addressing environmental and societal challenges. He advocated for prioritising energy-efficient AI systems and cross-sector collaboration to harness AI's potential responsibly.
The report also laid out ten strategic opportunities for technology companies in 2025 to leverage AI potential into measurable business transformation. These include adopting agentic AI to enhance customer experiences, modernising legacy systems, and training workforces to integrate AI into cybersecurity strategies. Streamlining portfolios to free up capital and shaping regulatory frameworks are seen as critical steps for sustaining growth and achieving market leadership.
The finance function within businesses is also undergoing transformation, evolving from a traditional scorekeeping role to a strategic partner, driven by the demand for financial precision and actionable insights. Effective cost allocation is stressed as a means to improve cost visibility and strategic decision-making, although challenges such as data silos and outdated processes must be tackled to achieve this transition.
The report concludes with a focus on GenAI's "black box" and the cybersecurity risks it introduces. The opaque nature of GenAI processes necessitates strategic oversight, with business leaders urged to focus not only on platform selection but also on data security and governance. Reframing questions to address these core issues could enable businesses to harness the full potential of GenAI while maintaining security and ethical standards.
