Smart manufacturing – the rise of robotics
In 2025, smart manufacturing will be dominated by the integration of advanced robotics and AI. The transition to Industry 5.0 will see human-centric manufacturing where robots and humans work collaboratively to enhance productivity and innovation. These robots will not only perform repetitive tasks but will also be equipped with AI to make real-time decisions, leading to optimised production processes, enhanced quality control and a reduction in machine failures. The integration of robotics with IoT (Internet of Things) will enable seamless communication between machines, leading to more efficient and flexible manufacturing systems. Naturally, the protection of intellectual property – particularly patents, trade marks, designs and confidential information will be of significant importance in this development. With a move towards the IoT, expect to see an increase in the use of standard essential patents, leading to greater discussion over FRAND terms.
Healthtech - AI-driven diagnostics and personalised medicine
The health tech sector is poised for significant advancements in 2025, particularly in AI-driven diagnostics and personalised medicine. AI algorithms will enhance diagnostic accuracy and speed, enabling early detection of diseases and more effective treatment plans. Wearable health tech devices will become more sophisticated, providing continuous health monitoring and personalised health insights, which may be able to detect illness at earlier stages. Personalised medicine, tailored to an individual's genetic makeup, will begin to revolutionise treatment approaches, improving patient outcomes. The rise of AI in health tech brings several legal challenges. Ensuring the accuracy and reliability of AI-driven diagnostics will be paramount, raising questions about liability for errors. The use of personal health data for AI training and personalised medicine will require stringent data privacy and consent protocols.
Blockchain, crypto, DeFi, GO!
2025 may be the year that alignment between the UK government and the FCA actually facilitates innovation and exploitation of crypto assets and the underlying distributed ledger technology (DLT). The FCA recently launched the Digital Securities Sandbox. In 2025, expect to see firms proving viable DLT models for financial market infrastructure, to improve efficiency and reduce the costs of trading and settlement of various financial instruments ranging from equities and bonds to emission allowances.
The government has indicated that it will proceed with proposals to bring certain activities relating to crypto assets and stablecoins within the regulatory perimeter. However, it will not yet be bringing stablecoins in scope of UK payments regulation. This should encourage innovation in this area, particularly as the FCA has committed to an ambitious roadmap for the development and implementation of the regime. Whilst true decentralised finance may still be some way off, DLT is likely to be key in the development of central payments infrastructure and it will be interesting to see how this develops in 2025 to support the integration of new products and services. Meanwhile, the design phase of the Digital Pound will continue throughout 2025.
Cybersecurity – best practice lies ahead
In 2025, the focus on cybersecurity will intensify due to the rising threat of supply chain attacks. The UK's proposed Cyber Security and Resilience Bill aims to enhance cyber defences and protect essential services by improving reporting requirements and empowering regulators. The EU's Digital Operational Resilience Act (DORA) has set unified standards for cybersecurity in the financial services sector indirectly covering all ICT providers (if you are an ICT provider and sell to the financial services community, take note of what is expected of you!). See further here. The EU's NIS2 Directive will enhance the security of critical infrastructure and essential services, extending to entities supplying these services. Businesses must update information strategies, audit third-party supply chains, conduct cybersecurity audits, arrange cyber insurance, and update incident response strategies. Implementing NIS2 and DORA requirements is essential for businesses in critical sectors, and those supplying them should, in turn, understand what is required of them and have adapted. These changes offer an opportunity to adopt best practices, improve cybersecurity resilience and turn them into a marketing (security) USP.
Professional services to further embrace AI
Professional service firms, including lawyers, accountants, consultants and fund managers, are adopting AI tools to drive efficiencies and enhance service delivery, and we’ve seen this first-hand here at Lewis Silkin. In 2025, AI will play an increasingly important role in automating routine tasks, such as document review, data analysis, and compliance checks, allowing professionals to dedicate their time to higher-value, complex work. AI-powered analytics may also provide deeper insights, enabling more informed decision-making and strategic planning. However, firms will of course need to be aware of the limitations of AI, and the risks associated with AI hallucination which will be improved, but not solved in 2025 – importantly, what problem are you seeking to solve with the deployment of any particular AI tool?
2025: a transformative year for sustainable tech?
In 2024, the tech sector faced significant challenges, including the escalating US-China chip war and the UK’s status as a leading contributor to e-waste, contrasted by the EU’s proactive measures like incentivising device recycling through Digital Product Passports. AI adoption surged, driving advances in green AI and urban sustainability, but also raising concerns over its heavy energy consumption, particularly in data centres. For 2025, AI is set to lead sustainability efforts by optimising energy use in data centres and enabling smart grids to integrate renewable energy sources efficiently. The EU’s Eco-design for Sustainable Products Regulation, with stricter recycling quotas and transparency mandates, will push circular economy practices forward, while the UK’s Environment Act 2021 lays the groundwork for resource efficiency through producer responsibility schemes. These developments, coupled with innovations like energy-efficient AI systems and ClimateTech startups, signal a transformative year for aligning technology with environmental goals.
The golden age of online safety?
Keeping internet users safe will be a key priority for user-to-user platforms and search engines – especially where those users are children. While we await further guidance from Ofcom on children’s access assessments (due in January) and children’s risk assessments (due in April), as well as its Protection of Children Codes of Practice (also due in April), platforms should be thinking about how they can harness emerging technologies to implement secure, reliable age assurance mechanisms that prevent children from encountering illegal harmful content. Expect to see leaps and bounds in the availability of technologies that drive efficient ‘notice and takedowns’, likely by harnessing LLMs for volume-focussed content moderation capabilities.
Navigating the new EU General Product Safety Regulation
As the EU’s new General Product Safety Regulation (GPSR) came into effect in December 2024, businesses operating in the European market must comply with sweeping changes to product safety compliance. This Regulation modernises the EU's approach to product safety, addressing challenges posed by online commerce and advanced technologies. Among its key updates are stricter accountability requirements for manufacturers, distributors and, importantly, online marketplaces, which must now establish internal safety processes and respond swiftly to regulatory orders.
Driving into the future: autonomous vehicles take the wheel
2025 could start to see autonomous vehicles (AV) moving from sci-fi dreams to roadside reality, thanks to the groundwork laid by initiatives like the UK's Automated Vehicles Act (AVA). The legislation not only sets stringent safety standards through its "self-driving test" but clarifies who's on the hook if things go wrong - hint: it’s not the driver if the car is in full control. This clarity, coupled with advancing AI and vehicle-to-infrastructure technology, will accelerate commercial adoption in logistics and public transport. However, challenges remain in balancing innovation with the cost of implementation and public trust. While the promise of seamless commutes and efficient deliveries is exciting, 2025 may still have us asking: are we ready to hand over the wheel?
Conclusion
Curious about how these tech trends could impact your business? Reach out to us for a deeper dive into the future of tech and how we can help you stay ahead of the curve. And feel free to share your own tech predictions