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New Year, New Tech: What is Agentic AI and how could it transform business in 2025?
The biggest tech trend prediction for 2025 (as predicted by Gartner and Forbes) is something called agentic AI. At the moment AI Chatbots use...
3 min read
Harriet Oliver : Dec 2, 2025 1:37:42 PM
From the rapid rise of agentic artificial intelligence to a record number of cyber incidents, IT teams found themselves navigating a brand new landscape that demanded more resilience, more automation and more strategic planning than ever before. As we look ahead, 2026 is shaping up to be a year defined by regulation and a shift towards smarter, more autonomous systems.
Below is a detailed look back at the major IT trends that defined 2025 and the key developments we expect to see in 2026.
Perhaps the most transformative development of 2025 was the emergence of agentic AI. These are AI systems that can take multi-step actions on behalf of a user, rather than simply responding to prompts. Microsoft drove much of this shift with its Copilot agents, which allowed organisations to automate routine tasks such as data classification, reporting, user support workflows and document preparation.
Agentic AI went far beyond chat-based assistance. Businesses began using agents to connect systems, trigger workflows and continuously monitor internal processes for improvement. The result was a significant increase in operational efficiency. Many organisations reported that agentic AI handled the equivalent workload of several full-time employees, allowing teams to redirect their time to higher-value strategic work. The trend also raised important questions about governance, oversight and trust, which will continue into 2026.
If 2025 was the year of agentic AI, it was also the year of unprecedented cyber threats. The UK saw a significant rise in high-profile attacks, with major organisations such as Marks and Spencer, Co op, Jaguar Land Rover, and City Councils experiencing severe disruptions. These incidents highlighted the growing sophistication of ransomware groups and the increasing likelihood of supply chain infiltration.
Many organisations discovered that traditional perimeter security was no longer enough. Attackers leveraged automation, AI-driven phishing and vulnerabilities in third-party systems. Businesses were forced to accelerate investments in detection technologies, cyber insurance and staff training. The events of 2025 served as a clear warning that cyber resilience is no longer optional and that existing strategies must evolve.
While general-purpose AI captured most of the headlines, 2025 saw a strong rise in sector-specific AI tools. Industries such as healthcare, retail, manufacturing and legal services began adopting AI platforms designed specifically for their regulatory and operational environments.
For example, manufacturers embraced predictive maintenance systems that could monitor machinery health in real time. The legal sector adopted AI tools to analyse case law and streamline document drafting. Retailers used AI to personalise promotions and optimise supply chain logistics. This marked a shift from experimental AI adoption to practical, measurable business outcomes.
As cyber threats grew, so did the adoption of zero-trust security models. Organisations increasingly moved away from traditional trust-based networks and towards environments where every user, device and application must continuously prove its identity.
Zero trust was no longer viewed as an aspirational goal but rather a required security baseline. Cloud identity platforms, multifactor authentication, micro segmentation and conditional access became core parts of everyday security architecture. The migration was not always simple, but the rise in cyber incidents forced organisations to take decisive action.
Finally, 2025 was the year that many businesses fully committed to modernising their applications. Cloud native technologies such as containers, Kubernetes, serverless computing and managed databases saw widespread adoption. Organisations realised that simply lifting and shifting legacy systems into the cloud was not delivering the performance, resilience or cost savings they expected.
Instead, teams began breaking down applications into smaller services, automating deployments and embracing infrastructure as code. This shift provided faster release cycles and more consistent system performance, but it also required teams to invest in new skills and governance frameworks.
In 2026, we expect to see AI becoming not just a tool but a core part of operational strategy. Companies will design processes with AI involvement from the ground up, rather than adding AI after the fact. AI will assist with decision-making, forecasting and resource allocation. Organisations will begin embedding AI into policies, workflows and customer engagement in a more structured and governed way.
Given the rise in cyberattacks, 2026 will see the expansion of autonomous security systems. Security Operations Centres will increasingly rely on AI to analyse threats, identify anomalies and automate first-level responses. This will help teams handle the rising volume of alerts and reduce the time between breach and detection.
With AI more widely used in day-to-day operations, governments are expected to strengthen the regulatory environment. Regulations around transparency, data usage, auditability and ethical deployment will likely become stricter. Organisations will need to maintain clearer documentation of AI decisions and ensure their models meet compliance standards.
As quantum computing edges closer to practical use, 2026 will see more organisations adopting quantum-safe encryption. This shift will not happen overnight, but early adopters will begin updating their cryptographic frameworks to prepare for future threats.
Finally, 2026 will see substantial growth in edge computing. AI will increasingly run on devices themselves rather than relying on the cloud. This will improve speed, reduce costs and allow organisations to process sensitive data locally. Retail, manufacturing and logistics will benefit the most from this shift.
2025 set the stage for one of the most transformative periods in IT history. As we move into 2026, the focus will shift from experimentation to strategic integration. Organisations that plan now will be best placed to take advantage of what comes next.
Stay ahead of evolving technology and regulations by contacting the experts at Fitzrovia IT today.
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