AI integration & data trends set to shape 2025 industry

The landscape of data and artificial intelligence (AI) continues to evolve, driven by strategic shifts and technological advancements. Experts from Starburst and EncompaaS weigh in on the trends that are expected to shape the industry in 2025.

Justin Borgman, cofounder and CEO of Starburst, highlights the increasing priority businesses place on real-time analytics. He asserts that delivering insights within minutes is crucial to meet customer demands and stay competitive, transforming traditional analytics from a reactive tool to a proactive business driver. This enhancement allows for quicker decision-making, empowering departments ranging from marketing to customer service.

Borgman also anticipates the acceleration and scaling of AI workflows through well-defined data products. The significance of data quality and governance, coupled with business context, becomes increasingly vital to AI applications. In this shifting landscape, the hybrid lakehouse model is predicted to gain traction. It seamlessly merges cloud and on-premises data storage, providing scalability and secure control, thus offering a flexible and robust infrastructure for data management.

Furthermore, the resurgence of SQL in data lakes is noteworthy. As technologies like Apache Iceberg simplify data access, SQL engines are gaining an edge over Spark, enhancing accessibility and democratizing data use across organisations. This resurgence enables broader data literacy and empowers teams to make informed decisions.

The traditional data warehouses are likely to be overshadowed by modern data-driven SaaS applications built on lakes. According to Borgman, the total cost of ownership (TCO) of data lakes, without vendor lock-in, makes them an attractive option for SaaS companies focused on margins. This infrastructure supports open formats and engines, providing an economical and scalable solution.

On the other hand, Jesse Todd, CEO of EncompaaS, reflects on the transformation AI brought about in 2024, evolving from theoretical concepts to practical applications. He notes that organisations, learning from past successes and failures, have shifted focus from document generation to data quality and security.

Todd observes that businesses now understand the transformational potential of AI, emphasising the need for proactive data preparation. As AI tools become more accessible and robust, they are driving productivity and efficiency, empowering organisations to harness AI capabilities effectively.

Looking ahead to 2025, Todd foresees AI disrupting core business processes rather than remaining a peripheral function. AI is set to be integrated into essential operations, enhancing internal business outcomes. This transition from novelty to necessity sees AI becoming a fundamental component of information management.

In the coming year, the availability of AI services is expected to expand, equipping organisations to manage and utilise data more efficiently. As businesses gain deeper insights into their data, they can pose more sophisticated questions, leading to strategic decisions and improved business processes.

The insights shared by Borgman and Todd underscore a pivotal shift towards data-driven business models and AI integration. These developments not only reflect evolving technological trends but also signify profound changes in organisational strategies as companies strive to remain competitive and innovative in a rapidly changing digital landscape.