But Don’t Worry, Douglas Adams Has it Covered…
If you’re on the edge of your seat, looking for as many 2025 predictions stories as you can possibly get your hands on, you’re not alone. This year we have the confluence of politics, trade wars, the threat of inflation and interest rate fluctuations, and the super fast evolution of AI to make predictions just a little more interesting.
The media is covering all of this with a gusto that only adds to anxiety levels. As 2025 approaches, the tech industry is embroiled in a series of changes and shifts unlike anything we’ve seen in the recent past. The chip sector is being re-written, with industry legend Intel allegedly a takeover target; wild swings in stock prices for everything from Microsoft to ARM are confusing to most of us; the promise and disappointment of EVs is baffling; and the fracturing of Eastern and Western spheres of tech continues to be a seismic realignment of worlds.
Depending on your appetite for roller coasters, it is either super exciting or super stressful to think about what might be ahead for tech in 2025.
If you’re on the “stressed” side, it might be a good time to revisit a science fiction classic, “The Hitchhiker’s Guide to the Galaxy” by Douglas Adams. It’s a wild romp through the galaxy with a motley cast of characters who encounter a series of disasters, which they navigate with a sense of humor and the guidance of the omniscient Hitchhiker’s Guide, an ebook (of sorts) of advice for getting around the galaxy on pretty much your wits alone (and a towel… you’ll have to read the book). But I’m not suggesting anyone read this for insight into where technology is headed, but solely because the core lesson of the story is “Don’t Panic.”
I tend to be on the optimistic side, so I’m excited about what’s ahead. 2024 was a year of growth for tech and the communications industry. There has been an overwhelming focus on AI, and everything supporting that – from chips to data management. But much of that growth has been incremental and cautious. Coming out of the summer, momentum started to pick up a bit, and now that the elections are over, it’s possible we’ll see a return to the rapid growth and innovation we all love in this industry.
Here are six things I’ll be watching in 2025:
The change in administration will impact some elements of the chip industry, but not all; watch for a re-articulation of the CHIPS ACT. But, I expect to see continued focus on re-shoring/building up silicon in the U.S.
I anticipate the environment for M&A to increase and the focus on anti-trust to relax. This should increase VC funding as well.
Tariffs, if implemented as promised, could impact availability of hardware in the short term and manufacturing in the longer term.
I expect the divide in East/West spheres of tech to continue to increase, especially between China and the U.S.
Commitment to AI spending is solid; I assume this will last until the back half of 2025; however, expect more scrutiny from the government on AI efficacy.
I’ll be watching for a shake up in the auto sector as the focus on EVs goes through some discussions. Musk’s close ties with President-elect Trump is likely to benefit Tesla, and that may benefit the industry as a whole.
I expect an increased focus on security as the insurance sector gets more involved in how companies respond to threats.
Musk in Washington could mean a boost for the space industry. It would be exciting to see the Artemis or Mars programs move forward in meaningful ways this year.
Let me know your thoughts on these predictions in the comments below. And if you’re stressed about the future, and every time you pick up that newspaper your heart starts to beat a little faster and your blood pressure rises, just think about what Douglas Adams said, imagine the opportunities coming out of the chaos, and “don’t panic.”
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