Artificial Intelligence has dominated tech conversations over the last couple of years, and our 2025 Silicon Forest Tech Trends Report reflects both excitement and a shift toward pragmatic AI adoption. Here are a few interesting insights from the report that set the stage for our recent Virtual Tech Roundtable on AI in 2025:
- AI is a priority, but leaders are cautious. While AI remains a top focus area for investment, many companies have moved past the hype cycle—they’re no longer just experimenting with generative AI but focusing on practical, high-value applications.
- AI’s role in workforce efficiency is evolving. 48% of leaders say their teams are overworked, and some are strategically leveraging AI to reduce workloads and skill shortages. The big question is whether AI is truly helping productivity or just shifting workloads elsewhere.
- AI is becoming more invisible and embedded. Instead of flashy AI tools, companies are integrating AI seamlessly into operations—enhancing workflows, customer interactions, and decision-making without people even realizing AI is at play.
- Budgeting for AI is more strategic than ever. 39% of companies plan to increase tech budgets, but leaders are under pressure to justify AI’s return on investment (ROI). The challenge is separating meaningful AI solutions from gimmicky ones.
In our recent Virtual Tech roundtable on AI in 2025, led by ProFocus Technology President James Lund, tech leaders discussed separating hype from reality and unlocking business value. Here are some of the key insights from the roundtable. Let’s dive in!
AI Beyond the Hype: What’s Real and What’s Just Buzz?
AI is everywhere, but how are businesses separating real value from overhyped tools and trends?
Many companies use packaged software that rapidly integrates AI. Adoption varies depending on the use case, such as retail price optimization, which is being implemented both knowingly and unknowingly. Some organizations are testing different AI models while governance councils set guardrails. The level of AI reasoning maturity varies significantly from pilot programs to full deployment.
A key challenge is distinguishing between AI, Large Language Models (LLMs), and Business Intelligence (BI). Many executives express a desire for AI without fully understanding what that means. One CIO noted the challenge of using their company’s AI technology internally and balancing rapid prototyping with IT self-service.
Governance remains a major focus, as companies work to ensure AI tools are reliable and effective rather than just “yet another tool.”
AI in Action: Where Is It Delivering Real Value?
Which areas are seeing the most measurable ROI from AI?
AI is enhancing software development through pair programming, accelerating tasks that previously took hours or days. However, companies are being cautious about how they integrate AI into their workflows—for example, avoiding putting proprietary data into external AI tools.
Organizations are working closely with vendors like Microsoft to establish AI guardrails. Some companies have released AI policies allowing employees to use approved tools like Copilot while blocking OpenAI for security reasons. Others have implemented a more flexible approach, initially restricting AI usage and later opening it up selectively.
Transparency is critical. Some organizations find vendors are not as transparent as expected, which slows down AI adoption. Leaders are focused on “right-sizing” transparency to ensure AI implementation aligns with business needs without unnecessary roadblocks.
AI is also improving customer assessments, helping companies identify and prioritize key clients. However, some executives argue that poorly designed AI tools contribute to what they call “Artificial Stupid” rather than true intelligence.
Budgeting for AI: How Do You Justify the Investment?
With AI budgets increasing, proving ROI remains a major challenge. How are businesses evaluating whether an AI initiative is worth the investment?
Reducing operational expenses (OPEX) is a key consideration. AI speeds up processes, but many leaders are cautious about how much unplanned work AI adoption might introduce. OpenAI tools have helped teams work more efficiently, but the challenge is balancing cost with value.
When selecting AI vendors, companies prioritize:
- NotebookLM
- OpenAI
- ERP Vendors
- Natural Reader
- Salesforce (which is catching up with AI integration)
ERP systems are increasingly incorporating AI, particularly in areas like accounts payable (AP) and accounts receivable (AR) to enhance efficiency. However, implementing AI in these areas requires strong guardrails to protect sensitive data.
One approach is tailoring AI policies based on the sensitivity of the developers and engineers may have different AI restrictions than other teams. Logging and monitoring AI use is crucial, as most issues stem from ignorance rather than malicious intent.
Addressing AI Bias and Data Challenges
Bias and data integrity remain major concerns. One company conducting an RFP for talent management software discovered significant biases in the vendor’s AI matching algorithms. What vendors claim and what actually happens often differ, highlighting the need for thorough evaluations.
Open-source AI models are an alternative, but building and training a custom model can take a year or more, with potential delays and budget overruns. Additionally, corporate data is rarely well-structured for AI, necessitating improved metadata tagging and data organization.
Balancing Innovation with Practicality
No one is 100% proficient at AI implementation yet, but companies are learning how to navigate its challenges. From governance and transparency to vendor selection and ROI justification, AI adoption in 2025 is about balancing innovation with practicality. Organizations that focus on strategic AI investments, thoughtful governance, and continuous education will be best positioned to unlock AI’s full business value.
ProFocus Technology is dedicated to fostering connections among industry leaders and driving meaningful discussions that shape the future of our tech ecosystem and workplaces. If you’re interested in joining fellow tech leaders at future roundtables, reach out to [email protected].
