Generative AI at inflection point: From digital sidekick to a transformative force

Since its launch in 2022, generative AI has evolved from a tool for simple tasks to a transformative force reshaping most industries. By 2024, it became integral to automating repetitive tasks, optimizing content creation and enhancing customer engagement. However, businesses realized that real differentiation lies in adopting industry-specific AI solutions. As we move into 2025, generative AI will deliver measurable outcomes, transitioning from a support tool to a critical driver of business growth and differentiation. The rapid advancements in Gen AI to shape 2025

Virtual Assistants Delivering Outcomes, Not Just Responses

AI assistants will evolve from providing information to executing complete tasks. For consumers, they will automate end-to-end tasks like booking appointments, making purchases, or planning trips. In e-commerce, approximately 60-75 per cent of customers abandon their carts, leading to lost sales. Virtual assistants have the potential to reduce this by up to 30 per cent by giving specific product recommendations, clarifying doubts in real time, sending proactive reminders and streamlining check-outs.

 Artificial Intelligence to “Amplification of Intelligence”

Within companies, work companions will be able to improve productivity. Sales teams will rely on AI for real-time insights, route optimization, and negotiation strategies. In manufacturing, AI-driven maintenance assistants will provide instant diagnostics and repair schedules, improving operational efficiency. Across industries, AI assistants will reduce manual intervention, streamline processes, reduce time-to-market for innovations and deliver measurable business outcomes. For e.g. At a leading bank in India, a virtual assistant handles all HR, Finance and IT queries. It also processes leave applications, payroll queries, etc. In another example, a Malaysia-based airline deployed a GenAI-powered chatbot to empower its ground staff. The tool allows staff to instantly access policy information and regulations on their devices, eliminating manual searches and boosting productivity. Since its launch, the chatbot has achieved about 80 percent resolution rate and is widely used across the organization with over 30,000 unique users.

 Hyper-personalized marketing: Mass Creation, Micro Connection

Generative AI will revolutionize marketing by combining scale with personalization. AI will create dynamic, real-time campaigns tailored to individual user behaviour and emerging trends. For instance, a food delivery app enhanced marketing effectiveness by integrating live cricket trends into its promotions.

Content automation will also enable businesses to produce high-quality, SEO-optimized descriptions, emails, and blogs instantly. For companies managing large product catalogues, this eliminates manual effort while enhancing search visibility and customer engagement. For instance, earlier this year, a UK-based electrical distributor used Gen AI to automate descriptions for thousands of SKUs, in an SEO-optimised fashion. In absence of Gen AI, it would have either taken months by a large, dedicated team, or the distributor would have had to opt for standard description across products.

 Product Design and Prototyping at Scale

For Industrial clients, Gen AI will enable significantly faster product design and prototyping. This typically is a critical but time and cost-intensive process, especially for large industrial organizations. A leading German machinery organization is leveraging AI for improving design for enhanced product performance and lower cost. Gen AI is also assisting large industrial clients with energy optimization and predictive maintenance.

 Personalized learning and development

Generative AI will transform employee training with interactive, multilingual programs tailored to individual needs. AI-driven virtual mentors will deliver instant feedback and simulate real-world scenarios, accelerating skill development. The pace and content of learning will be tailored to individuals. For instance, a video telephony company is using GenAI to transform its sales training program. With GenAI, they provide personalized, immersive training for over 1,000 salespeople, featuring real-time virtual coaching via avatars that offer instant feedback.  Online / mobile training platforms have started offering personalized exercises, adaptive quizzes, etc, based on user proficiency, errors, and progress.

 Emerging applications and addressing challenges

Generative AI will continue to disrupt other sectors. In healthcare, AI is expected to analyse medical images with greater precision, detecting patterns and anomalies for earlier diagnosis. In software development, it will generate live prototypes from text prompts, reducing development timelines.

However, businesses must consider issues such as data privacy, ethical AI usage, and regulatory compliance while adopting Gen AI. Eliminating bias in AI outputs and ensuring transparency will be critical, as will upskilling workforces to maximize AI’s potential. Companies that address these challenges proactively will gain a significant edge.

Early adoption is critical to stay competitive

Generative AI is no longer an optional enhancement; it is central to staying competitive. Organizations that adopt this technology early will lead the next wave of growth and innovation. For leaders, the challenge is not whether AI will disrupt their industry or not but how quickly they can harness its potential to drive innovation and stay competitive.

Akhilesh Sahu

---

Akhilesh Sahu is Managing Director of Alvarez and Marsal.