AI’s potential future 3 AI shows great promise in breakthrough innovations, from scientific discovery to sustainability, healthcare and beyond, shaping a transformative future. The most disruptive changes are often those we cannot yet foresee. Nevertheless, certain market shifts are already apparent, providing valuable insights into potential future directions for AI. It may be said that advances in AI – combined with its convergence with other emerging technologies, such as spatial computing, quantum computing and enhanced computing architectures – are poised to disrupt specific industries and capabilities at varying paces. Most experts also agree that widespread AI integration will drive business transformation across all industries in the coming years. This will be in the form of operational-efficiency enhancements that will catalyse changes spanning analytics, programming, product and strategy development, sales, communications and customer support. Consider the following three promising waves: 1. Full automation of complex, repetitive tasks: AI agents, working collaboratively, can enable the full automation of complex, repetitive tasks across various industries, streamlining operations and allowing humans to focus on more advanced tasks. This automation will allow workers to shift focus to more strategic activities. Implementing agents and multi-agent systems at scale will also facilitate automation in industries such as manufacturing, logistics and customer service, driving operational efficiency and enabling cost savings while enhancing overall productivity.56 By 2028, functions and industries – such as manufacturing and financial services – will see significant gains as AI agents manage production lines, optimize supply-chain operations with minimum human supervision and handle customer support and fraud detection with ease.572. More contextualized and personalized decision-making: Integrating advanced reasoning capabilities into genAI applications will enable AI systems to be more effective at assisting humans in navigating complex environments and making situation-aware decisions. This progress will also deeply impact industries by supporting adaptive solutions – from personalized treatment plans in healthcare to highly personalized consumer experiences. In consumer industries, AI is set to enhance sales capabilities by providing data- driven insights and personalized strategies, enabling sales teams to optimize customer engagement, improve lead generation, and offer tailored solutions and experiences. The education sector will benefit, too, as genAI creates adaptive learning content and real-time assessments. For example, 2024 saw the first commercial experiments with foundation models that had “reasoning” capabilities.58 Advances in natural language processing have improved dialogue and storytelling as well, thereby enhancing the quality of user interactions and personalized experiences. 3. Enhanced individual efficiency and capabilities: The integration of AI-enabled handheld devices, advanced edge AI and compact language models has the potential to revolutionize work by automating tasks, managing schedules and providing real- time information. These innovations enable faster, more informed decision-making, effective communication and more productive behaviours. Instant access to critical insights enhances personal and professional decision- making. This shift will likely reshape how individuals and businesses operate, similar to the transformative impact of the internet. Integrating advanced reasoning capabilities into genAI applications will enable AI systems to be more effective at assisting humans. 21 AI Governance Alliance: Transformation of Industries in the Age of AI

AI in Action Beyond Experimentation to Transform Industry 2025