AI trends 2025: these are the most important embedded AI trends in 2025

Artificial intelligence (AI) has made enormous strides in recent years. It has become an integral part of many areas of daily life. Exciting developments are on the horizon for 2025, particularly in the field of embedded AI, which involves integrating AI directly into sensors. Embedded AI enables intelligent decisions to be made directly at the source of the data without having to be transferred to central processing units or even the cloud. This is particularly important in times of IoT (Internet of Things), Industry 4.0, and increasing automation. The trend from AI on the cloud and edge to pure embedded AI systems was already apparent at “Electronica.”

Viacheslav Gromov, CEO of embedded AI provider AITAD, names the most important trends that will shape the field of embedded AI in 2025.

1. AI sovereignty – “Made in Germany” is gaining importance

The US elections and geopolitical tensions have raised awareness of the need for technological sovereignty in Germany and Europe. In 2025, it will be crucial not only to invest in the development of our own AI technologies, but also to promote and protect them.

AI “Made in Germany” is becoming increasingly important if Germany wants to maintain its independence from foreign suppliers, especially from the US and China, as an industrial and technology location. This applies not only to the development of algorithms, but to the entire infrastructure, from semiconductors and data processing to cloud services. The focus must be on developing sovereign AI solutions that comply with European data protection regulations and guarantee national security.

Since the use of embedded AI does not require the transmission of sensitive information over the network, the risk of data leaks and cyberattacks is significantly reduced. This development will be particularly important for critical applications in areas such as healthcare, the automotive industry, and smart cities, where data protection and security requirements are particularly high.

Initiatives such as the National AI Strategy and investments in research and development are intended to help establish Germany as a global AI hub that not only remains technologically independent but also is considered a pioneer in ethical AI. In an increasingly connected world, it will be essential for Germany to develop its own trustworthy AI systems in order to secure national independence and economic resilience.

2. Predictive maintenance as the key to sustainable business models

In 2025, machine and automotive manufacturers will increasingly focus on predictive maintenance in order to remain competitive with other global manufacturers during the economic crisis. This is because wage and energy costs are putting increasing pressure on piecework competition. Maintenance contracts, subscriptions, and continuous service models are becoming increasingly important, as they not only help optimize operating costs but also provide long-term, recurring sources of revenue.

European companies in particular can gain competitive advantages here, as service orientation and a customer-focused approach are traditionally very strong in Europe, especially in Germany. The idea of offering customers not just a product, but also continuous, customized service is in line with the European approach of long-term partnership and quality.

Predictive or preventive maintenance, supported by embedded AI technologies, makes it possible to predict failures so that maintenance can be carried out flexibly and in a timely manner – a real added value for the customer. This trend toward data-driven business models and services will not only increase efficiency but also promote stronger customer loyalty and differentiation in global competition.

3. Energy efficiency through the use of embedded AI instead of data centers

Climate change and high energy costs in this country are a major challenge: A significant trend in 2025 will be the increasing use of embedded AI instead of energy-hungry central computers and servers for data processing, as this offers considerable advantages in terms of energy efficiency. Traditionally, processing large amounts of data in data centers requires enormous amounts of energy, not only to operate the servers, but also to air-condition and secure (backup systems, firewalls) the infrastructure. In contrast, embedded AI enables data to be processed directly on the devices or sensors, eliminating the need for energy-intensive data transfers and less efficient external computing capacity.

This development will not only reduce energy costs but also promote a more sustainable use of resources. Especially in application areas such as the Internet of Things (IoT), smart homes, and Industry 4.0, embedded AI will become the standard solution as a key technology for energy-efficient systems (control solutions).