Introduction
It’s not surprising that AI tops the list of technologies transforming global businesses as well as the lives of everyday workers. But there are significant shifts occurring across a much broader technological spectrum that will also have a major impact around the world. A recent report from consulting firm McKinsey & Co. highlights 13 areas driving innovation and addressing critical challenges across business sectors. While only the top two are explicitly AI-related, artificial intelligence is also having a major impact behind the scenes in many tech realms.
“AI stands out not only as a powerful technology wave on its own but also as a foundational amplifier of the other trends. AI both accelerates progress within individual domains and unlocks new possibilities at the intersections — accelerating the training of robots, advancing scientific discoveries in bioengineering, optimizing energy systems and much more,” the report states.
All of these trends are exponentially increasing demand for computing power, capturing the attention of management teams and the public, and accelerating experimentation. They are unfolding against a backdrop of rising global competition as countries and corporations race to secure leadership in producing and applying these strategic technologies. The findings are based on an analysis of quantitative measures of interest, innovation, equity investment, and talent that underpin each of the 13 trends.
The 13 Frontier Tech Trends
1. Agentic AI
Agentic AI is an artificial intelligence system capable of independently planning and executing complex, multistep tasks. Built on foundation models, these agents can autonomously perform actions, communicate with one another, and adapt to new information. Significant advancements have emerged, from general agent platforms to specialized agents designed for deep research.
- 2024 Equity Investment: $1.1 billion
- Job Postings Difference (2023-24): +985%
2. Artificial Intelligence
Artificial intelligence refers to computer systems designed to perform tasks that typically require human intelligence. These systems leverage algorithms, data, and computational power to recognize patterns, make decisions, and learn from experiences.
- 2024 Equity Investment: $124.3 billion
- Job Postings Difference (2023-24): +35%
3. Application-Specific Semiconductors
Application-specific semiconductors are purpose-built chips optimized to perform specialized tasks. Unlike general-purpose semiconductors, they are engineered to handle specific workloads (such as large-scale AI training and inference tasks) while optimizing performance characteristics, including superior speed, energy efficiency, and performance.
- 2024 Equity Investment: $7.5 billion
- Job Postings Difference (2023-24): +22%
4. Advanced Connectivity
Advanced connectivity covers a suite of evolving technologies that enhance and expand digital communication networks. This includes wireless low-power networks, 5G and emerging 6G cellular systems, Wi-Fi 6 and 7 standards, and low-Earth-orbit satellites.
- 2024 Equity Investment: $44.2 billion
- Job Postings Difference (2023-24): –14%
5. Cloud and Edge Computing
Cloud and edge computing involve distributing workloads across locations, from hyperscale remote data centers to regional hubs and local nodes. This approach optimizes performance by addressing factors such as latency, data transfer costs, data sovereignty, and data security.
- 2024 Equity Investment: $80.8 billion
- Job Postings Difference (2023-24): +2%
6. Immersive-Reality Technologies
Immersive-reality technologies encompass augmented reality (AR) and virtual reality (VR), including AR smart glasses, advanced haptic feedback, and AI-powered enhancements that improve rendering, tracking, and processing capabilities.
- 2024 Equity Investment: $6.0 billion
- Job Postings Difference (2023-24): –11%
7. Digital Trust and Cybersecurity
Digital trust and cybersecurity covers technologies and practices designed to ensure secure, transparent, and trustworthy digital interactions. This includes identity verification, data protection, encryption, threat detection, and blockchain-based trust systems.
- 2024 Equity Investment: $77.8 billion
- Job Postings Difference (2023-24): +7%
8. Quantum Technologies
Quantum-based technologies make use of the unique properties of quantum mechanics to execute certain complex calculations exponentially faster than classical computers, secure communication networks, and produce sensors with higher sensitivity levels than their classical counterparts.
- 2024 Equity Investment: $2.0 billion
- Job Postings Difference (2023-24): –15%
9. Future of Robotics
The future of robotics covers the advancement of robotics capable of performing tasks autonomously or semi-autonomously, adapting to new, real-life inputs with increasing degrees of autonomy and dexterity, including autonomous mobile robots and humanoid robots.
- 2024 Equity Investment: $7.0 billion
- Job Postings Difference (2023-24): –2%
10. Future of Mobility
Mobility technologies include autonomous vehicles; electric vehicles; drones; urban air mobility solutions, such as electric vertical takeoff and landing aircraft; and micromobility, such as e-scooters and e-bikes. These technologies aim to improve the efficiency, safety, and sustainability of transportation systems.
- 2024 Equity Investment: $131.6 billion
- Job Postings Difference (2023-24): +6%
11. Future of Bioengineering
Bioengineering is the application of engineering principles to biology, utilizing technological advancements (for example, gene editing, synthetic biology) to improve health and human performance, transform food value chains, and create innovative offerings.
- 2024 Equity Investment: $57.3 billion
- Job Postings Difference (2023-24): –17%
12. Future of Space Technologies
Space technologies cover satellite systems, launch vehicles, habitation modules, and exploration missions, including low-Earth-orbit satellite constellations, direct-to-device connectivity integrating space assets with terrestrial networks, and Earth observation.
- 2024 Equity Investment: $9.3 billion
- Job Postings Difference (2023-24): –9%
13. Future of Energy and Sustainability Technologies
Energy and sustainability technologies encompass a broad spectrum of innovations aimed at transforming the global energy landscape toward a more sustainable and resilient future. This includes the spectrum of technologies transforming the global energy value chain, particularly focusing on clean electrons, electrification, and clean molecules.
- 2024 Equity Investment: $223.2 billion
- Job Postings Difference (2023-24): –6%
Conclusion
These 13 trends represent the cutting edge of technology in 2025, with AI serving as a key enabler across the board. As businesses and societies adapt, the focus will shift from hype to practical implementation, ensuring these innovations deliver real-world value while navigating challenges like ethical considerations and resource demands.
FAQs
What is Agentic AI, and why is it rising in prominence?
Agentic AI refers to AI systems that can independently plan and execute multistep tasks, acting like autonomous agents. Its rise is driven by advancements in foundation models, enabling applications from virtual coworkers to specialized research tools, with explosive growth in investments and job postings.
How does AI amplify other tech trends?
AI accelerates progress in individual domains (e.g., robotics training) and creates intersections (e.g., bioengineering discoveries), acting as a foundational amplifier that boosts efficiency and innovation across all 13 trends.
Which trend saw the highest equity investment in 2024?
Future of energy and sustainability technologies received the highest investment at $223.2 billion, reflecting global priorities around clean energy and climate resilience.
Are there any declining trends in job postings?
Several trends, such as advanced connectivity (-14%), immersive-reality technologies (-11%), and future of bioengineering (-17%), showed decreases in job postings from 2023 to 2024, possibly indicating maturation or shifts in demand.
How can businesses prepare for these frontier trends?
Businesses should monitor equity investments and talent shifts, invest in AI integration, and focus on interdisciplinary applications to stay competitive in this rapidly evolving landscape.
