The Next Wave of AI: What’s Coming in 2025

Pete Hanlon, Chief Technology Officer at Moneypenny, shares key insights into the AI trends shaping SMEs in 2025.

By Pete Hanlon

AI is here to stay, and its impact on businesses—big and small—is growing fast. From improving efficiency to overcoming integration challenges and navigating new regulations, AI is changing how SMEs operate. Here’s a look at the key trends that will have the biggest impact.

Accessible AI: A Game-Changer for SMEs

AI is no longer just for big tech companies. Open-source AI, in other words, AI systems that are freely available to use and share, is making powerful tools available to businesses of all sizes at lower costs. This shift means SMEs can access AI solutions that are affordable, customisable, and tailored to their needs. With AI becoming more accessible, small businesses can compete more effectively, improve operations, and innovate without relying on expensive enterprise solutions. The result: More SMEs will use open-source AI to improve customer service, streamline workflows, and boost efficiency.

AI Won't Replace Jobs—It Will Enhance Them

AI won’t take away jobs—it will help employees work smarter. AI is becoming a digital assistant, taking care of repetitive tasks so people can focus on creativity, strategy, and customer relationships.

Companies that combine AI with human expertise will see higher productivity and better customer experiences. AI will also drive investment in training so employees can work effectively alongside these tools.

Integration: The Biggest Hurdle for SMEs

The real challenge isn’t adopting AI—it’s making it work with existing systems. AI must integrate smoothly into daily operations, whether it’s AI-powered customer management systems or automated workflows.

Many SMEs struggle because their current systems aren’t built for AI. To fix this, businesses need solutions that communicate seamlessly with existing software. Those that succeed will gain a competitive edge by improving customer engagement, logistics, and data management.

Industry-Specific AI: More Relevant Solutions

Generic AI tools are being replaced by industry-specific models that understand the unique needs of different sectors. For example, in finance, AI improves compliance and risk analysis. And in legal services, it speeds up contract reviews.

For SMEs, it is a win-win as it means AI solutions that need less customisation and provide more useful insights.

Managing Expectations: AI is Not a Magic Fix

Not all AI investments will deliver immediate results. Some SMEs will face integration challenges or unrealistic expectations. The key is to start with a clear goal—what problem is AI solving for your business?

Instead of chasing AI trends, SMEs should focus on practical applications. By setting clear goals, tracking results, and refining their AI use, businesses can get real value rather than frustration.

Regulation: The Compliance Challenge

AI regulations are becoming stricter, especially for customer-facing applications. SMEs must focus on transparency, ethical AI use, and data protection.

Forward-thinking businesses are already implementing accountability measures to ensure AI decisions are fair and reliable. With new regulations emerging, companies must proactively assess AI for fairness, bias, and transparency to avoid legal and reputational risks.

AI and Customer Experience: A Competitive Edge

AI is revolutionising customer experience, allowing SMEs to compete like never before. AI-driven voice assistants, predictive analytics, and automation tools help businesses personalise interactions, speed up responses, and improve efficiency.

SMEs that blend AI with human support will deliver fast, engaging, and personalised experiences—standing out in an increasingly competitive market.

AI in Decision-Making: Smarter Business Moves

AI is more than automation—it’s about making smarter business decisions. Companies using AI-driven analytics can gain deep insights into customer behaviour, market trends, and operational efficiency.

AI helps optimise marketing, streamline supply chains, and improve financial forecasting giving SMEs a strategic advantage.

What This Means for SMEs

2025 isn’t just about AI advancements—it’s about smart AI adoption. The real winners won’t be the companies chasing the latest AI trends but those that integrate AI strategically to improve efficiency and customer experience.

The best approach is to evaluate where AI can make the most impact, invest in seamless integration, and prepare for regulatory changes. AI isn’t just the future—it’s the present. SMEs that embrace it wisely will thrive in 2025 and beyond.

About the author

Pete Hanlon is the CTO of Moneypenny, the world’s customer conversation experts that fulfil the communication requirements for thousands of SME businesses in the UK and US. Celebrating 25 years, Moneypenny combines brilliant people with AI technology to deliver seamless customer conversations that unlock valuable opportunities for businesses 24/7.