DZ TR Genai 2025
DZ TR Genai 2025
37 Supercharged LLMs
COMBINING RETRIEVAL AUGMENTED
GENERATION AND AI AGENTS TO TRANSFORM
BUSINESS OPERATIONS
Pratik Prakash | Principal Solutions Architect
at Capital One
Let's remember a time when candles or oil lamps DZone's 2025 Generative AI Trend Report takes us to
were the primary source of artificial light. While they the heart of this transformation. Together, let's explore
allowed illumination, their use remained restricted technologies such as the famous large language
and limited to a small space. models (LLMs), retrieval-augmented generation (RAG),
autonomous agents (AI agents), vector databases,
Then, in the 1800s, electricity started to change the as well as the ethical and security implications that
world. At first seen as a luxury, it gradually became come with this technological revolution.
a necessity that went far beyond just the ability to
provide light — electricity revolutionized industry, Throughout the articles, you'll find in-depth analyses,
communications, and ways of living. As history would concrete use cases, and strategic recommendations
later show, this invention enabled a whole world of to effectively integrate generative AI into your projects.
innovations that had previously been unimaginable.
Far more than just a technological status report, this
What if I told you that generative AI (GenAI) is following publication aims to be a source of ideas for those who
a similar path? want to understand, who are ready to experiment,
and who aspire to be active players in this ongoing
See, GenAI first emerged in research laboratories revolution.
before quickly conquering both industry and the
general public through fascinating applications — Before letting you dive into these articles, let me
though let's not mention the AI that once insisted share something I deeply believe:
that 2 + 2 = 5.
If we commit to using AI with discernment and
Things moved so quickly that within just a few years, ethics, then, far from replacing us, generative AI
GenAI now stands ready to revolutionize the way we will reveal its full potential to amplify our ability
create, automate, and innovate. Who would have to create, innovate, and produce.
imagined that it could pass medical licensing exams,
managing to achieve a 60% accuracy rate without Enjoy your reading, and welcome to this dazzling
prior training? revolution.
AI technology is now more accessible, more intelligent, and easier to use than ever before. Generative AI (GenAI)
has transformed nearly every industry, offering cost savings, reducing manual tasks, and adding a slew of other
benefits that improve overall productivity and efficiency. The applications of GenAI are expansive, and thanks to the
democratization of large language models (LLMs), AI is reaching organizations worldwide.
Our goal for these findings is to provide a detailed analysis and insights on the trends surrounding GenAI models,
algorithms, and implementation, paying special attention to GenAI's impacts on code generation and software
development as a whole. In DZone's 2025 Generative AI Trend Report, we focus specifically on the role of LLMs over
the last year, organizations' adoption maturity, intelligent search capabilities, and much more. We hope to guide
practitioners around the globe as they assess their own organization's AI capabilities and how they can better
leverage those in 2025 and beyond.
In February and March, DZone surveyed software developers, architects, and other IT professionals in order to gain
insight on the current state of generative AI in the software development space.
Methods
We created a survey and distributed it to a global audience of software professionals. Question formats included
mainly single and multiple choice, with options for write-in responses in some instances. The survey was
disseminated via email to DZone and TechnologyAdvice opt-in subscriber lists as well as promoted on dzone.com,
in the DZone Core Slack workspace, and across various DZone social media channels. The data for this report were
gathered from responses submitted between February 13, 2025, and March 2, 2025; we collected 408 complete and
partial responses. Our margin of error for the results of this survey is 5%, and this report treats comparative results of
5% or less as insignificant.
Demographics
We've noted certain key audience details below in order to establish a more solid impression of the sample from
which results have been derived:
• 14% of respondents described their primary role in their organization as "Business manager," 13% described
"C-level executive," and 10% described "Developer/Engineer." Furthermore, 18% of respondents selected the
"Other, write in" option with regard to their primary role. No other role that we provided was selected by more
than 10% of respondents.*
• 65% of respondents said they are currently developing "Web applications/Services (SaaS)," 41% said "Enterprise
business applications," and 23% said "Native mobile apps."
• "Python" (71%) was the most popular language ecosystem used at respondents' companies, followed by "Java"
(45%), "JavaScript (client-side)" (42%), "Node.js (server-side JavaScript)" (30%), and "C/C++" (27%).
• Regarding responses on the primary language respondents use at work, the most popular was "Python" (43%),
followed by "Java" (14%), and "JavaScript (client-side)" (7%). 13% of respondents selected the "Other, write in" option
for their primary language at work. No other language was selected by more than 5% of respondents.
• On average, respondents said they have 12.97 years of experience as an IT professional, with a median of 10 years.
• 45% of respondents work at organizations with < 100 employees or reported being self-employed, 18% of
respondents work at organizations with 100-999 employees, and 35% of respondents work at organizations with
1,000+ employees.*
*Note: For brevity, throughout the rest of these findings, we will use the term "developer" or "dev" to refer to anyone actively involved
in the creation and release of software, regardless of role or title. Additionally, we will define "small" organizations as having < 100
employees, "mid-sized" organizations as having 100-999 employees, and "large" organizations as having 1,000+ employees.
In this report, we review some of our key research findings. Many secondary findings of interest are not included here.
Results:
ML engineer 30%
BI developer 28%
None 20%
0 10 20 30 40
5%
6%
Exploratory
29%
Pilot
27% Operational
Enterprise-integrated
33% Transformational
OBSERVATIONS
80% of respondents indicated that their organization has some kind of AI-/ML-related role at their organization (i.e.,
did not select "None"). 72% of respondents selected at least one of the 12 roles we provided, over half (53%) selected at
least two, and almost one-third (30%) selected four or more.
Compared to our 2024 Enterprise AI survey, response rates for several AI roles fell significantly, including "Data
scientist," "Data engineer," and "Business intelligence (BI) developer." On the other hand, the number of respondents
who selected "None" increased significantly (+10%). Additional details can be found in Table 1 (see Appendix).
Respondents at small organizations were significantly more likely to claim their organization does not have any AI-
related roles, while respondents at large organizations were significantly less likely to report the same. The following
are additional observations when segmenting results by organization size:
• Respondents at large organizations were more likely than others to report their organization having most of the
12 roles we suggested, including "Data analyst," "Data scientist," "AI product manager," and "Machine learning
(ML) engineer."
• Respondents at small organizations were less likely than others to report their organization having most of
the 12 AI-related roles we suggested, including "Data analyst," "Business intelligence (BI) developer," and "AI
solutions architect."
The majority of respondents (62%) suggested that their organization is in the early stages of generative AI
adoption, describing their organization's GenAI maturity as either "Exploratory" or "Pilot." Most other respondents
described their organization's GenAI maturity as "Operational," and only 11% of respondents described their
organization's GenAI maturity as being in the advanced stages of "Enterprise-integrated" and "Transformational."*
Segmenting results by organization size, Table 3. Organizations' GenAI maturity levels by organization size*
the only significant difference we found was
Organization Size
that respondents at large organizations
were less likely than others to describe their Maturity Level 1-99 100-999 1,000+ Overall
The segmented data can be found in Table 3. Pilot 32% 33% 33% 33%
Most organizations are not very advanced with regard to their generative AI maturity, and for nine out of 10
businesses, "deploying GenAI in specific departments and/or use cases" is the apex of their GenAI adoption. Large
organizations seem to have slightly outpaced others in GenAI maturity levels, but for the most part, organizations of
all sizes are, at best, midway on their GenAI journey.
The potential GenAI has for nearly all enterprises will likely drive maturity levels forward over the next several years,
but we will need further data to see how slowly or quickly those levels improve on average.
Security Considerations
We asked the following:
• What steps does your organization actively employ to secure AI practices and implementations, like LLMs,
vector databases, etc.?
• Describe your organization's ability to defend AI applications built by internal AI teams against security threats
like prompt injections, DoS attacks, and sensitive data leakage.
Results:
AIOps 22%
Alerts 19%
Other, write in 4%
None 28%
0 10 20 30 40
11%
Moderately prepared
30%
Limited preparedness
Unprepared
30%
OBSERVATIONS
70% of respondents selected at least one of the 13 suggested AI security steps actively employed at their
organization, and roughly half (49%) selected three or more. Over a quarter of respondents said their organization
takes no active steps to secure AI practices and implementations, and no response received a response rate over 40%.
Furthermore, a few notable observations when segmenting responses by respondents' organizations' GenAI maturity
are as follows (with additional data available in Table 5):
• There was a negative correlation between organizational GenAI maturity and the absence of AI security steps
— in other words, respondents who described their organization's GenAI maturity as "Exploratory" were most
likely to select "None" regarding their organization's AI security steps, with decreasing response rates for each
subsequent maturity level (i.e., Pilot, Observational, and Advanced).
• Likewise, we found positive correlations between respondents' organizations' GenAI maturity and "Real-time
monitoring," "AIOps," and "Predictive analytics."
• Respondents at organizations with "Advanced" GenAI maturity were more likely than others to report their
organization using "Data protection," "Alerts," "Anomaly detection," "Explainability and transparency," "Ethical AI
and bias mitigation," and "Model security and integrity."
• Respondents at organizations in the "Exploratory" GenAI maturity stage were less likely than others to select
every suggested security step (except for "Alerts," where the difference in response rates fell just within the
margin of error).
GenAI Maturity
Other, write in 4% 2% 4% 7% 4%
*% of columns
Only about one in 10 respondents felt their organizations were fully prepared to defend AI apps built by internal
teams. A majority of respondents reported their organization as either having "Limited preparedness" or as being
completely "Unprepared."
Respondents at large organizations were more likely than others to say their organization is "Moderately prepared"
and "Fully prepared" to defend AI apps against security threats. Likewise, respondents at organizations with an
"Advanced" level of GenAI maturity were more likely than others to say their organization is "Fully prepared" for AI
defense, while respondents at organizations in the "Exploratory" stage of their GenAI maturity were considerably
more likely to say their organization is "Unprepared" to defend AI apps.
CONCLUSIONS
AI security is a critical consideration in the development or implementation of AI technologies, but the explosion of
growth that generative AI has seen in recent years has likely led to some organizations hastily adopting GenAI before
ensuring appropriate security is in place. It seems few organizations actively employ more than a handful of steps
for securing their AI implementations, and even among organizations that could be described as "Advanced" in their
GenAI maturity, fewer than half appear fully prepared to defend their AI applications.
Over the next few years, as organizations improve their GenAI maturity levels and the hype around the technology
ultimately falls, we expect to see increases in response rates for at least a few AI security steps, as well as an overall
shift toward better preparedness for AI defense.
Other, write in 9%
None 1%
0 20 40 60 80
Non-discrimination 21%
Accountability 33%
Transparency 44%
Sustainability 19%
Other, write in 4%
None 7%
I don't know 8%
0 20 40 60 80
Compared to our 2024 Enterprise AI survey results, response rates for "Chatbots/virtual assistants," "Personalized
marketing," "Smart analytics and BI," and "Process automation and robotic process automation (RPA)" increased
significantly, while response rates for "Supply chain optimization" and "Fraud detection and security" decreased (see
details in Table 8).
None 4% 1% -3%
n= 171 384 -
84% of respondents reported that their organization has raised or faced at least one of the nine ethical concerns
provided as answer options, and over half of respondents (55%) selected three or more.
Of the respondents that did not say their organization has raised or faced any ethics concerns, about half (7% of
total respondents) indicated their organization hasn't faced any of these concerns, while the other half (8% of total
respondents) selected "I don't know." "Privacy and data protection" was selected significantly more than other
concerns (23% higher than the second most commonly selected concern).
• Respondents at organizations with Collaboration and inclusivity 15% 16% 21% 17%
CONCLUSIONS
Developers generally believe there are at least some valuable applications of AI and ML, though devs at small
organizations are less likely to see those applications directly. Chatbots and similar conversational AI technologies
are especially growing in popularity as worthwhile AI applications, likely because of the wide range of applicable use
cases they have demonstrated in recent years.
Regarding ethical concerns, data privacy currently seems to be top of mind for most organizations, perhaps at
least partly because of privacy regulations such as GDPR and CCPA. As we suggested in the previous section, we
expect "Safety and security" to become a bigger AI concern over the next few years, and it is likely that organizations
will raise many other ethical concerns as AI technologies become a part of more organizations' systems. Ideally,
organizations will raise these concerns before facing any negative consequences.
TensorFlow 28%
PyTorch 33%
Scikit-learn 18%
Keras 10%
Apache MXNet 6%
Caffe 2%
CUDA 12%
Dask 2%
DL4J 1%
FastAPI 14%
Fast.ai 5%
Genism 2%
H2O.ai 3%
LightGBM 3%
NLTK 9%
OpenCV 10%
PaddlePaddle 1%
Shogun 1%
SpaCy 8%
Theano 1%
Other, write in 7%
None 41%
0 10 20 30 40 50
100
84%
80
60
50% 51%
44%
40
25%
21% 21%
20 15%
10% 8%
2%
0
Amazon ChatGPT DeepSeek Google Google IBM Microsoft Microsoft NVIDIA OpenAI Other,
SageMaker Gemini Cloud AI Watson Azure AI Copilot write in
*Note: We inadvertently listed "OpenAI" instead of "OpenAI API" as our tenth AI platform, which had a response rate of 51%. However, we do
acknowledge possible ambiguity of the selection alongside "ChatGPT," so we plan to better distinguish the two platforms in future surveys.
kind of open-source AI tool. "Hugging Face," Hugging Face 28% 42% 42% 35%
"PyTorch," and "TensorFlow" were the most
PyTorch 24% 34% 43% 33%
commonly selected choices.
TensorFlow 17% 28% 43% 28%
Segmenting responses by organization size, we
Scikit-learn 11% 16% 27% 18%
found the following (see details in Table 12):
FastAPI 13% 8% 18% 14%
• Respondents at large organizations were
more likely than others to say they use CUDA 6% 20% 16% 12%
"PyTorch," "TensorFlow," "Scikit-learn," and Keras 6% 9% 13% 10%
"NLTK." They were less likely than others to
OpenCV 6% 11% 11% 10%
select "None."
• Respondents at small organizations were NLTK 5% 5% 16% 9%
less likely than others to report using SpaCy 5% 6% 11% 8%
"Hugging Face," "PyTorch," "TensorFlow,"
Other, write in 5% 8% 9% 7%
"CUDA," and "Apache MXNet." They were
more likely than others to select "None." Apache MXNet 2% 8% 11% 6%
Fast.ai 2% 3% 8% 5%
Additionally, a few notable findings when
segmenting responses by organizations' GenAI H2O.ai 1% 3% 6% 3%
maturity level are as follows:
LightGBM 1% 2% 7% 3%
• Respondents at organizations in the Caffe 0% 5% 2% 2%
"Advanced" stages of GenAI maturity
were more likely than others to select Dask 1% 3% 1% 2%
Almost all respondents (97%) selected at least one of the 10* AI platforms listed, and nearly half (45%) selected three
or more. "ChatGPT" was the most commonly selected platform by a wide margin, with "OpenAI," "Google Gemini,"
and "Microsoft Copilot" trailing further behind, respectively.
GenAI Maturity
IBM Watson 3% 0% 3% 2% 2%
None 3% 1% 2% 0% 2%
*% of columns
As far as AI platforms are concerned, most developers are utilizing AI technologies like ChatGPT to assist them with
their work. The wide availability of these platforms as well as the range of tasks they can help perform make them
valuable tools for almost all developers, regardless of the specifics of the organizations and applications they are
working with.
Multimodal AI
We asked the following:
• Have you worked on or experimented with multimodal AI models in your projects?
• What modalities do you think are most important in multimodal AI applications?
• In what areas do you see the most value in multimodal AI?
Results:
4%
15%
Yes, in a production environment
100
89%
80 73% 72%
60
49%
40 34%
20
1% 4%
0
Text Images Video Audio/speech Sensor data Other, write in No opinion
75%
75
67%
52%
50
43%
37%
25
7%
2% 3%
0
Content Enhanced AI-powered Medical and Robotics and Other, None No
creation search and assistants healthcare autonomous write in opinion
recomm. systems apps systems
OBSERVATIONS
Table 16. Work with multimodal AI models by GenAI maturity*
Just over half of respondents (51%) said
they have worked with multimodal AI GenAI Maturity
Work With
models in some capacity, and most of the Multimodal AI Exploratory Pilot Operational Adv. Overall
remaining respondents are interested in
Yes, in a prod
using them (46% of all respondents). 6% 13% 18% 36% 15%
environment
Respondents at organizations with Yes, in an
"Advanced" GenAI maturity were most experimental or 20% 44% 44% 33% 36%
likely to say they have worked with research setting
multimodal AI in a prod environment, while No, but I'm
those at organizations in the "Exploratory" interested in 71% 41% 34% 21% 46%
stage of GenAI maturity were most likely using them
to indicate that they have not worked with No, and I don't
multimodal AI (further details in Table 16). see a need for 3% 2% 4% 10% 4%
them
"Text," "Images," and "Audio/speech" were
n= 110 124 102 42 381
the modalities respondents deemed most
important. Respondents at large *% of columns
organizations were slightly more likely to
find "Text," "Images," and "Sensor data"
Table 17. Opinion: Most important modalities in multimodal
important, but otherwise, there were no
AI applications by organization size*
significant differences when segmenting by
organization size (see details in Table 17). Organization Size
CONCLUSIONS
While most organizations are not using multimodal models in their production applications, developers are generally
interested in their potential, especially for AI assistants with multisensory inputs/outputs and for multimodal content
creation. Text, image, and speech modalities are likely to be organizations' main focus over the next several years, but
we expect models incorporating video and sensor data modalities to be highly beneficial for more niche use cases.
4%
9%
Not sure
91% of respondents indicated that their Table 21. LLM use cases: 2024-2025
organization uses LLMs for multiple use cases
LLM Use Case 2024 2025 % Change
(i.e., they selected two or more of the use cases
provided), and more than half of respondents Content generation 64% 72% +8%
(54%) selected at least four LLM use cases. Prompt design and engineering 60% 57% -3%
"Content generation" was the most commonly
Code generation 55% 57% +2%
selected LLM use case, but "Prompt design and
engineering," "Code generation," and "Data Data extraction/analysis 38% 50% +12%
extraction/analysis" all had response rates over Vector databases 53% 40% -13%
50% as well. Market research 23% 32% +9%
Compared to last year's results, response rates for Sentiment analysis 34% 29% -5%
"Data extraction/analysis," "Market research," and Data labeling and annotation 21% 23% +2%
"Content generation" all increased significantly,
Automated customer support 28% 22% -6%
while rates for "Automated customer support"
and "Vector databases" decreased (details can be Model distillation 15% 10% -5%
found in Table 21). Other, write in 2% 5% +3%
and "Prompt design and engineering" Vector databases 29% 38% 54% 40%
as LLM use cases. Market research 42% 26% 23% 32%
• Respondents at small organizations
Sentiment analysis 25% 31% 33% 29%
were more likely than others to say their
organization uses LLMs for "Market Data labeling and annotation 19% 18% 32% 23%
research." Additionally, they were Automated customer support 16% 15% 32% 22%
less likely than others to select "Data
Model distillation 9% 8% 14% 10%
extraction/analysis," "Vector databases,"
Other, write in 4% 8% 4% 5%
and "Sentiment analysis."
n= 99 39 81 222
CONCLUSIONS
*% of columns
LLM use is widespread at this point, and
considering the popularity of text as an
AI modality, it is no surprise. Text-based communication is still the primary method of user interaction for most
applications, so the number of organizations utilizing LLMs to leverage app data for AI/ML will most likely continue to
rise. Generating content is the primary LLM use case at the moment, and there is potentially some room for growth
in that area, but we also expect to see LLMs being used for a wider variety of applications in the future.
Results:
50 46%
40
31% 32%
30
22%
20 17%
10
2%
0
AI-powered Vector Semantic Hybrid Other, None
search search search search write in
Figure 15. Opinion: Intelligent search's ability to find relevant information [n=245]*
2%
Significantly improved
12%
Somewhat improved
33%
No noticeable difference
Figure 16. Opinion: Most impactful areas for intelligent search [n=250]
Other, write in 4%
None 4%
0 10 20 30 40 50 60
GenAI Maturity
Vector search (e.g., Pinecone, Weaviate, FAISS) 8% 26% 19% 51% 22%
Semantic search (e.g., BERT-based retrieval models) 12% 16% 17% 37% 17%
Other, write in 1% 2% 4% 2% 2%
*% of columns
Most respondents (86%) said they thought intelligent search has at least somewhat improved their ability to find
relevant information. Very few respondents (2%) said they thought intelligent search made their ability to find info
"Somewhat worse," and no respondents said they thought it "Made it significantly worse."
Respondents at small organizations were most likely to say that intelligent search "Significantly improved"
their ability to find information, and respondents at mid-sized organizations were most likely to say intelligent
search "Somewhat improved" it. Segmenting by GenAI maturity, respondents at organizations with "Advanced"
GenAI maturity were more likely than others to say intelligent search "Significantly improved" their ability to find
information but were less likely than others to say they thought it "Somewhat improved" it. Additional details can be
found in Tables 24 and 25 (see Appendix).
Table 26. Most impactful areas for intelligent search by organization size*
"Data analysis and research" and Organization Size
"Knowledge management and internal
documentation" were the most commonly Area of Impact 1-99 100-999 1,000+ Overall
When segmenting by respondents' organizations' GenAI maturity, we noted the following (further details in Table 27):
• Respondents at organizations with "Advanced" GenAI maturity were more likely than others to say intelligent
search has a noticeable impact on "Code search and development tools" and "Customer support and self-service."
• Respondents at organizations in the "Exploratory" stage of GenAI maturity were more likely than others to find
that intelligent search impacts "Data analysis and research." They were less likely than others to select "Code
search and development tools" and "Customer support and self-service."
Table 27. Most impactful areas for intelligent search by GenAI maturity*
GenAI Maturity
Knowledge management and internal documentation 23% 36% 48% 63% 40%
Code search and development tools 17% 13% 15% 19% 15%
Other, write in 2% 5% 3% 3% 4%
None 8% 1% 4% 3% 4%
n= 60 86 71 32 250
*% of columns
CONCLUSIONS
The majority of organizations are actively using intelligent search, with AI-powered search like Elasticsearch with
ML being the predominant type of intelligent search used. It is probable that even more rely on intelligent search
technologies that they don't realize they are using, but we expect to see active usage of intelligent search increase
as AI/ML technology improves. Developers overwhelmingly find that intelligent search helps them and their
organizations find relevant information more easily and quickly, though currently the areas where it has the most
noticeable impact varies from business to business.
Future Research
Our analysis here only touched the surface of the available data, and we will look to refine and expand our Generative
AI research as we produce future Trend Reports. Please contact [email protected] if you would like to discuss
any of our findings or supplementary data.
G. Ryan Spain
G. Ryan Spain lives on a beautiful two-acre farm in McCalla, Alabama with his lovely
@grspain wife. He is a polyglot software engineer with an MFA in poetry, a die-hard Emacs
@grspain fan and Linux user, a lover of The Legend of Zelda, a journeyman data scientist, and
@grspain a home cooking enthusiast. When he isn't programming, he can often be found
watching Um, Actually on Dropout with a glass of red wine or a cold beer.
gryanspain.com
n= 191 399 -
Organization Size
*% of columns
Organization Size
Security standards (e.g., OWASP Top 10, NIST) 11% 25% 34% 22%
Other, write in 2% 1% 5% 4%
*% of columns
Organization Size
*% of columns
GenAI Maturity
*% of columns
Organization Size
None 1% 1% 1% 1%
*% of columns
GenAI Maturity
None 11% 6% 6% 2% 7%
Other, write in 3% 6% 2% 2% 4%
*% of columns
GenAI Maturity
Fast.ai 3% 5% 4% 8% 5%
H2O.ai 1% 3% 4% 8% 3%
LightGBM 4% 2% 4% 8% 3%
Caffe 2% 2% 1% 3% 2%
Dask 3% 0% 0% 3% 2%
Genism 2% 1% 1% 3% 2%
DL4J 1% 2% 0% 3% 1%
PaddlePaddle 1% 1% 1% 0% 1%
Shogun 1% 0% 1% 3% 1%
Theano 1% 1% 1% 0% 1%
*% of columns
Organization Size
AI-powered assistants (e.g., voice, text, and vision integration) 69% 75% 83% 75%
Content creation (e.g., generating text, images, or videos) 72% 64% 63% 67%
Medical and healthcare applications (e.g., medical imaging, patient data) 40% 36% 51% 43%
Robotics and autonomous systems (e.g., combining vision and control signals) 35% 33% 42% 37%
Other, write in 8% 4% 8% 7%
No opinion 3% 3% 3% 3%
None 2% 0% 2% 2%
*% of columns
GenAI Maturity
*% of columns
n= 163 380
**Note: In 2024, we mistakenly included "Yes, we are considering it" and "No, but we are considering it" as separate answer options for
this question. These received response rates of 28% and 18%, respectively. We have combined those results here, but it is possible that this
error affected last year's results, which in turn would affect these findings' YOY comparison.
Organization Size
n= 111 36 95 245
*% of columns
Table 25. Opinion: Intelligent search's ability to find relevant information by GenAI maturity*
GenAI Maturity
n= 59 84 71 31 245
*% of columns
Generative AI (GenAI) has become a transformative force, redefining how machines generate, retrieve, and process
information across industries. This article explores its rapid evolution, highlighting key breakthroughs, industry
applications, and emerging trends. From the rise of large language models (LLMs) and retrieval-augmented
generation (RAG) to the growing role of agentic AI, the analysis delves into innovations driving AI's transformation
and the challenges shaping its responsible adoption. Early breakthroughs like GPT-3 and DALL-E paved the way
for GPT-4o, Claude 3.5, and Gemini Ultra, enabling real-time memory-augmented reasoning and cross-modal
capabilities. Figure 1 shares the key developments across the timeline.
Trend Description
Scaling LLMs • Sparse models and MoE: Models like Google's Switch Transformer use MoE techniques to activate only relevant
efficiently model components per query, significantly reducing consumption costs.
• Memory-enhanced LLMs: DeepSeek R1, GPT-4o, and Claude 3.5 Sonnet have longer context windows, enabling
AI to retain historical interactions without excessive compute overhead.
• Low-rank adaptation (LoRA) and parameter-efficient fine tuning: These techniques allow fine-tuning of specific
model layers, making custom LLM deployment feasible for enterprises without requiring full model training.
The rise of • Improved contextual awareness: Models like OpenAI's Sora, Gemini Ultra, and DeepSeek Vision process and
multimodal generate text, images, videos, and audio simultaneously.
models • Hybrid AI: This type of AI involves combining LLMs, RAG, and structured databases to enhance factual
correctness while maintaining generative creativity.
Latency and cost • Quantization/pruning techniques: These techniques reduce model sizes without compromising accuracy for
optimization in edge deployments.
AI deployments • Efficient inference techniques: Innovations in FlashAttention and speculative decoding improve generation
speed, which reduces costs for real-time applications.
• Serverless AI and on-device AI: New deployment paradigms allow lightweight AI models to run directly on
consumer devices, reducing dependency on cloud-based infrastructure.
These developments collectively contribute to more intelligent, context-aware, and versatile AI systems, poised to
transform various industry sectors.
LangGraph Framework for creating multi-agent workflows with integrated language models
The following Python code summarizes legal documents using GPT-4 and LangChain:
This command extracts key points from a legal contract or compliance document and saves hours of manual review
time for legal professionals.
This code uses unsupervised learning (Isolation Forests) to detect fraudulent transactions, thereby identifying
anomalous spending behavior for real-time fraud prevention.
Healthcare • Medical imaging: assist in reconstructing high-quality images from low-resolution scans, improving
diagnostic accuracy
• Drug discovery: generate potential molecular structures, accelerating the identification of new drug candidates
Finance • Fraud detection: analyze transaction patterns to identify anomalies indicative of fraudulent activities
• Risk assessment: simulate various financial scenarios, aiding in comprehensive risk evaluation and management
Manufacturing • Product design: create optimized design prototypes, enhancing product development efficiency
• Predictive maintenance: predict equipment failures, allowing for proactive maintenance scheduling
Entertainment • Content creation: produce music, art, and scripts, offering new tools for creators and reducing production time
• Game development: generate realistic environments and characters, enriching the gaming experience
Customer • Chatbots: provide personalized responses, improving customer engagement and support efficiency
service • Sentiment analysis: assess customer feedback to inform service improvements
These global regulatory efforts reflect an ongoing shift toward ensuring AI safety, transparency, and fairness while
fostering technological advancement.
Ethical AI Development
Developing ethical AI necessitates adherence to core principles that ensure technology serves humanity responsibly:
• AI systems should operate transparently, allowing users to understand how decisions are made.
• Ensuring AI applications are free from biases that could lead to unjust outcomes is crucial.
• Safeguarding personal information throughout the AI lifecycle is essential.
• Clear guidelines must define who is accountable for AI-driven decisions and their societal impacts.
Implementing these principles fosters trust and aligns AI innovations with human values.
As we step into the future, the focus must remain on harnessing AI's potential responsibly, ensuring it serves as a
catalyst for positive transformation across industries and societies.
References:
• Getting Started With Large Language Models by Dr. Tuhin Chattopadhyay, DZone Refcard
• AI Automation Essentials by Dr. Tuhin Chattopadhyay, DZone Refcard
• AI Act, European Commission
• Getting Started With Agentic AI by Lahiru Fernando, DZone Refcard
• "AI Regulation in the U.S.: Navigating Post-EO 14110" by Frederic Jacquet
• Model Artificial Intelligence Governance Framework, Second Edition, Info-communications Media Development
Authority (IMDA) and Personal Data Protection Commission (PDPC)
• "Baidu to release next-generation AI model this year, source says" by Reuters
• "China's Interim Measures on generative AI: Origin, content and significance" by Sara Migliorini
Dr. Tuhin Chattopadhyay is a highly esteemed and celebrated figure in the fields of AI
Dr. Tuhin
and data science, commanding immense respect from both the academic and
Chattopadhyay
corporate fraternities. Dr. Tuhin has been recognized as one of India's Top 10 Data
@tuhinc Scientists by Analytics India Magazine, showcasing his exceptional skills and profound
@tuhinai knowledge in the field. Dr. Tuhin is a visionary entrepreneur, spearheading his own AI
consultancy organization that operates globally, besides being the professor of AI and
tuhin.ai
analytics at JAGSoM, Bengaluru.
Challenges
A leading global shipping company faced significant challenges in manually
processing hundreds of thousands of invoices annually across multiple
countries. The complexity stemmed from:
• Managing diverse invoice formats from different vendors and countries
Global Logistics Company* • Ensuring compliance with varying country-specific regulations and tariffs
Logistics and Transportation • Processing documents in multiple languages
15,000+ employees • Validating data against complex corporate regulations
Solutions Used The existing process was error-prone and time consuming, creating
bottlenecks in their operations and increasing the risk of compliance issues
Vertesia Platform
due to human error in data entry and validation.
The platform's advanced AI algorithms are trained to recognize and adapt to new invoice formats, eliminating the
need for template-based approaches.
Results
The company's intelligent document processing solution built with Vertesia's low-code platform delivered significant
operational improvements:
• Gained over 80% efficiency in extraction, translation, and validation
• Successfully supported unique operational processes across 15+ countries
• Addressed hundreds of different invoice format variations without manual intervention
• Reduced processing time from hours to seconds
• Ensured 100% invoice validation across corporate and regulatory compliance
• Scaled to process hundreds of thousands of invoices annually
• Saved more than 30% in operational costs
• Significantly reduced regulatory risk through improved auditability and compliance checks
The automation solution transformed the logistics and transportation company's invoice processing from a manual,
error-prone operation to an automated, efficient, and fully compliant process that supports their global operations.
Supercharged LLMs
Combining Retrieval Augmented Generation and AI Agents to
Transform Business Operations
By Pratik Prakash, Principal Solutions Architect at Capital One
Enterprise AI is rapidly evolving and transforming. With the recent hype around large language models (LLMs), which
promise intelligent automation and seamless workflows, we are moving beyond mere data synthesis toward a more
immersive experience. Despite the initial enthusiasm surrounding LLM adoption, practical limitations soon became
apparent. These limitations included the generation of "hallucinations" (incorrect or contextually flawed information),
reliance on stale data, difficulties integrating proprietary knowledge, and a lack of transparency and auditability.
Managing these models within existing governance frameworks also proved challenging, revealing the need for a
more robust solution. The promise of LLMs must be tempered by their real-world limitations, creating a gap that calls
for a more sophisticated approach to AI integration.
The solution lies in the combination of LLMs with retrieval augmented generation (RAG) and intelligent AI agents. By
grounding AI outputs in relevant real-time data and leveraging intelligent agents to execute complex tasks, we move
beyond hype-driven solutions and FOMO. RAG + agents together focus on practical, ROI-driven implementations
that deliver measurable business value. This powerful approach is unlocking new levels of enterprise value and
paving the way for a more reliable, impactful, and contextually aware AI-driven future.
Several key trends are shaping the evolution and effectiveness of RAG systems to make real-world, production-grade,
and business-critical scenarios a reality:
• Vector databases: The heart of semantic search – Specialized vector databases (there many commercial
products available in the market to unlock this) enable efficient semantic search by capturing relationships
between data points. This helps RAG quickly retrieve relevant information from massive datasets using
conceptual similarity rather than just keywords.
• Hybrid search: Best of both worlds – Combining semantic search with traditional keyword search maximizes
accuracy. While keyword search identifies relevant terms, semantic search refines results by understanding
meaning, therefore ensuring no crucial information is overlooked.
• Context window expansion: Handling larger texts – LLMs are limited by context windows, which can hinder
processing large documents. Techniques like summarization condense content for easier processing, while
memory management helps retain key information across longer texts, ensuring coherent understanding.
• Evaluation metrics for RAG: Beyond LLM output quality – Evaluating RAG systems requires a more holistic
approach than simply assessing the quality of the LLM's output. While the LLM's generated text is important,
the accuracy, relevance, and efficiency of the retrieval process are equally crucial. Key metrics for evaluating RAG
systems include:
∘ Retrieval accuracy – How well does the system retrieve the most relevant documents for a given query?
∘ Retrieval relevance – How closely does the retrieved information align with the user's information needs?
∘ Retrieval efficiency – How quickly can the system retrieve the necessary information?
By focusing on these metrics, developers can optimize RAG systems to ensure they are not only generating high-
quality text but also retrieving the right information in a timely manner.
These examples illustrate the potential of RAG to transform enterprise workflows and drive significant business value.
Autonomous Agents
Autonomous agents are evolving to plan and execute tasks independently, reducing the need for human
intervention. These agents can process real-time data, make decisions, and complete processes on their own,
therefore streamlining operations.
Agent Frameworks
Frameworks like LangChain and LlamaIndex are simplifying the development and deployment of agent-based
systems. These tools offer pre-built capabilities to create, manage, and scale intelligent agents, making it easier for
enterprises to integrate automation.
Essentially, the system must not only be technically sound but also reliably perform its intended function as the
volume of inputs and requests increases, preserving both its intelligent output and operational speed.
Table 1 details the emerging trends in RAG and agent AI, covering technological advancements like efficient systems
and multi-modality, as well as crucial aspects like AI governance, personalization, and human-AI collaboration.
Category Details
Efficient RAG Optimization of RAG for faster retrieval, greater indexing, and accuracy to improve performance
systems and adaptability to growing data needs
AI lifecycle Comprehensive frameworks are needed for the governance, compliance, and traceability of AI
governance systems within enterprises
Legacy system Integrating RAG + agents with legacy systems allows businesses to leverage existing infrastructure
integration while adopting new AI capabilities, though this integration may not always be seamless
Multi-modality Combining data types like text, images, audio, and video to enable richer, more informed decision
making across various industries
Personalization AI systems will tailor interactions and recommendations based on user preferences, increasing
user engagement and satisfaction
Human-AI Creating much needed interactions between humans and AI agents, allowing AI to assist with
collaboration tasks while maintaining human oversight and decision making
Embodiment AI agents will interact with the physical world, leading to applications like robotics and
autonomous systems that perform tasks in real-world environments
Explainability and Increased transparency in AI decision-making processes to ensure trust, accountability, and
transparency understanding of how AI arrives at conclusions
Crucially, it heralds an era of human-AI collaboration, where seamless interaction empowers human expertise by
automating data-heavy and repetitive processes, allowing staff or human workforce to focus on higher-order tasks.
Looking forward, the future of enterprise AI hinges on continuous innovation, evolving toward scalable, transparent,
and ethical systems. While the next generation promises advancements like multimodality, autonomous decision
making, and personalized interactions, it is essential to have a balanced approach that acknowledges practical
limitations and prioritizes governance, security, and ethical considerations.
Success lies not in chasing hype, but in thoughtfully integrating AI to deliver lasting value. RAG + agents are at the
forefront of this pragmatic evolution, guiding businesses toward a more intelligent, efficient, and collaborative future
where AI adapts to organizational needs and fuels the next wave of innovation.
Pratik Prakash Pratik, an experienced solutions architect and open source advocate, expertly
blends hands-on engineering and architecture with multi-cloud and data
@scanpratik
science expertise. Driving tech simplification and modernization, he specializes
@pratik-prakash in scalable, serverless, and event-driven applications and AI solutions for digital
@scanpratik transformation. He can also be found on X.
Large language model (LLM) embeddings are numerical representations of words, sentences, or other data types
that capture semantic meaning in a high-dimensional space. By converting raw text into vectorized forms, LLMs
can efficiently process, compare, and retrieve information. These embeddings cluster similar meanings together,
enabling deeper contextual understanding, advanced similarity searches, and streamlined knowledge retrieval.
This capability powers a range of AI-driven applications, from natural language understanding to recommendation
systems, enhancing efficiency and accuracy across various tasks.
The complexity of your use case dictates whether a lightweight model will suffice or if a deep transformer-based
approach is necessary. Additionally, computational costs and storage constraints should be carefully evaluated to
ensure that your chosen embedding strategy aligns with your performance and scalability needs.
Tools like OpenAI's embedding API, Hugging Face Transformers, or TensorFlow's embedding layers streamline this
process. Post-processing steps, such as normalization or dimensionality reduction, further optimize embeddings for
applications like clustering and search.
A robust developer data platform can simplify the integration of LLM embeddings, making it easier to build and
scale AI-powered applications. With the right platform and built-in support for popular LLMs, developers can
streamline search, agentic AI, and edge computing workflows while optimizing performance and efficiency.
The rapid advancement of artificial intelligence (AI) creates breakthroughs that span multiple industries. Among
many developments, agentic AI and generative AI stand out as two transformative powers. Although these
systems work differently because they serve distinct functions, they bring substantial benefits when used together.
Generative AI focuses on content creation through deep learning transformer models that learn from extensive
datasets. This technology enables increased human productivity in content creation tasks as well as design,
marketing activities, and software development by delivering text, images, code, and music outputs.
On the other hand, agentic AI extends beyond content generation to cover goal-oriented execution and autonomous
decision-making systems. Agentic AI exists to automate tasks, which helps businesses run more efficiently by
reducing human involvement.
This AI landscape presents businesses, developers, and researchers with essential needs to understand the core
characteristics of AI paradigms, along with their individual strengths and limitations and their synergistic benefits.
This article examines both AI systems, relative benefits and drawbacks, and their implementation challenges
together with ethical risks and how their combined use creates intelligent automation and industry-driven innovation.
Purpose Task execution, decision making, and Content creation (text, image, videos)
workflow automation
Operational mode Autonomous action and iterative learning Predictive modeling and pattern recognition
Domain specialization Best suited for automation in IT, Best for creative applications like writing,
cybersecurity, and finance image generation, and software development
Interaction with users Primarily operates in the background, Direct interaction with users via chatbots,
executing tasks image generation, or coding assistance
Autonomy level Highly autonomous, operates without Requires human prompts and oversight
constant human input
Despite the differences between them, there are some similarities between generative AI and agentic AI.
ML dependency Uses ML to drive decision making and automation Uses ML for generating content and predictions
Data driven Requires structured datasets for decision making Learns from vast amounts of unstructured data
Enhances productivity Automates workflows and reduces human intervention Assists in content creation, accelerating tasks
Let's take an example of an e-commerce platform that uses generative AI to develop product descriptions, and then
agentic AI measures customer interaction data to optimize content strategies in real time. In the same manner,
The organizations that implement this loop of feedback, as shown in Figure 3, will develop intelligent systems that
adapt to changing demands while achieving better outcomes.
Security Concerns
The increasing complexity of AI models leads to major security risks, including data weaknesses and model
vulnerabilities. The foremost risk in AI technology is data security because models often reveal personal information
about users accidentally. AI models are large token sequencers that require broad datasets for training and response
generation, making data breaches possible through poor data management and system defects.
In 2023, OpenAI's ChatGPT faced a major data leak when a bug enabled users to view other users' chat history,
including payment details. This incident revealed major security issues with interactive AI applications that process
personal information. OpenAI took responsibility for the problem and implemented a fix, but the incident showed
how essential it is to strengthen AI interaction with data protection.
Model exploitation represents another major risk, which involves using AI-generated content for harmful activities.
Deepfake technology alongside other generative AI models have been used to spread false information and political
statements as well as fraudulent content. AI-generated videos showing Ukrainian President Volodymyr Zelensky
claiming Ukraine surrendered during the Russia-Ukraine war reached online audiences. The fabricated AI-generated
videos created confusion and panic due to their realistic nature, which tricked viewers into believing and spreading
them through social media and other online platforms.
Organizations need to build strong governance frameworks coupled with transparency and security features to
manage these risks as AI adoption grows. Organizations should practice protected data privacy audits on content
produced by AI systems to avoid potential misuse and monitor the systems as a protective measure.
Ethical Challenges
As AI systems expand their use in decision making across all industries, the issues of bias in AI models and
responsible usage remain prominent ethical concerns. AI systems are trained with huge datasets that frequently
hold historical biases that lead to unfair results in areas like hiring, finance, and law enforcement.
The use of AI also requires responsibility because, without it, we risk unwanted effects that cannot be controlled.
AI models are usually opaque, i.e. black boxes, and one cannot easily understand how and why a decision was
made. This lack of interpretability is even more worrying in industries such as healthcare and finance, where the
recommendations from AI can significantly impact a human's life.
Conclusion
Agentic AI and generative AI cause industrial shifts through their capability to create innovative decision-making
systems and generative content platforms. Agentic AI improves automation through the execution of tasks and
workflow optimization, while generative AI drives innovation through text, image, and code production. The
integration of these products proves dangerous because they produce major ethical problems and serious security
risks, such as data weaknesses and biased AI outputs alongside the exploitation of AI models. The necessary solution
for these concerns demands a sustained commitment to AI innovation's ethical standards.
Businesses, developers, and policymakers should establish a governance system and implement fairness verification
and security measures to support ethical AI usage. A successful strategy in the future requires organizations to
evaluate AI integration opportunities while practicing responsible AI ethics, keeping track of AI technological progress
to gain maximal benefits, and reducing associated risks. Businesses must maintain proper human oversight to
achieve efficient operation with trustworthy AI systems that power technological advancement and social gain.
References:
• "Insight - Amazon scraps secret AI recruiting tool that showed bias against women" by Jeffrey Dastin
• Getting Started With Agentic AI by Lahiru Fernando, DZone Refcard
• "March 20 ChatGPT outage: Here's what happened" by OpenAI
• "Deepfake presidents used in Russia-Ukraine war" by Jane Wakefield
Building AI-Driven
Intelligent Applications
A Hands-On Development Guide for Integrating GenAI Into Your Applications
By Naga Santhosh Reddy Vootukuri, Principal Software Engineering Manager at Microsoft
In today's world of software development, we are seeing a rapid shift in how we design and build applications, mainly
driven by the adoption of generative AI (GenAI) across industries. These intelligent applications can understand and
respond to users' questions in a more dynamic way, which help enhance customer experiences, automate workflows,
and drive innovation. Generative AI — mainly powered by large language models (LLMs) like OpenAI GPT, Meta
Llama, and Anthropic Claude — has changed the game by making it easy to understand natural language text and
respond with new content such as text, images, audio, and even code.
There are different LLMs available from various organizations that can be easily plugged into existing applications
based on project needs. This article explains how to build a GenAI-powered chatbot and provides a step-by-step
guide to build an intelligent application.
It is notably generative AI that is rapidly transforming the Figure 1. Artificial intelligence landscape
business world by fundamentally reshaping how businesses
automate tasks, enhance customer interactions, optimize
operations, and drive innovation. Companies are embracing AI
solutions to have a competitive edge, streamline workflows, and
unlock new business opportunities.
To counter these risks, businesses should invest in AI moderation tools and adopt proactive strategies to detect and
mitigate harmful or misleading content before it reaches users. Through strong governance, ethical frameworks,
and continuous monitoring, organizations can unlock the potential of AI while protecting their operations, trust, and
customer data.
Deciding whether to choose an open-source or enterprise platform to build intelligent AI applications depends on
your project requirements, team capabilities, budget, and technical expertise. In some situations, a combination of
tools from both open-source and enterprise ecosystems can be the most effective approach.
cd c:\Users\nagavo\source\repos\PythonChatApp
virtualenv myenv
One advantage with GitHub Models is that we can easily switch to the GPT o3-mini model by simply updating the
model name variable without changing existing code. This file contains two functions, summarize_text and
ask_question_about-text , both of which are responsible for summarizing the text from the selected PDF and,
later on, to ask questions related to the content. The file contents are shown below:
import os
from openai import OpenAI
def extract_text_from_pdf(pdf_path):
"""Extracts text from a PDF file."""
text = ""
try:
with pdfplumber.open(pdf_path) as pdf:
for page in pdf.pages:
page_text = page.extract_text()
if page_text:
text += page_text + "\n"
except Exception as e:
print(f"Error reading PDF: {e}")
return text
import os
from Pdf_utils import extract_text_from_pdf
from Github_utils import summarize_text, ask_question_about_text
def main():
print("=== PDF Chatbot ===")
if not os.path.isfile(pdf_path):
print(f"Error: The file '{pdf_path}' does not exist.")
return
if not text.strip():
print("No text found in the PDF.")
return
if question.lower() == "exit":
print("Exiting the chatbot. Goodbye!")
break
try:
answer = ask_question_about_text(text, question)
print("\nAnswer:")
print(answer)
except Exception as e:
print(f"Error with GitHub API: {e}")
break
if __name__ == "__main__":
main()
Enter the path to the PDF file in the response. In this example, I uploaded a resume to help me summarize the
candidate's profile and her experience. This file is sent to the GPT-4o model to summarize the file contents as shown
in Figure 3.
Figure 3. Summary of the PDF document in the GPT response
We can host this app on an e-commerce website to upload product and order information. This allows customers
to interact by asking specific questions about products or their orders, thus avoiding customer agents manually
answering these questions. There are multiple ways we can leverage GenAI across industries; this is just one example.
Conclusion
Integrating GenAI into applications is no longer a luxury but a necessity for businesses to stay competitive. The
adoption of GenAI offers numerous advantages, including increased productivity, improved decision making, and
cost savings by avoiding repetitive work. It is also crucial to be aware of the challenges and risks associated with
GenAI, such as hallucination, bias, and regulatory compliance, as it is easy to misuse AI-generated content. It is
essential to adopt responsible AI practices and invent robust governance frameworks to ensure ethical and fair
use of AI technologies and by doing so, organizations can unlock the full potential of GenAI while protecting their
reputation and trust from their customers.
References:
• "AI regulations around the world: Trends, takeaways & what to watch heading into 2025" by Diligent Blog
• "Superagency in the workplace: Empowering people to unlock AI's full potential" by Hannah Mayer, et al.
• "Expanding AI's Impact With Organizational Learning" by Sam Ransbotham, et al., MITSloan
• "Embracing Responsible AI: Principles and Practices" by Naga Santhosh Reddy Vootukuri
As a seasoned professional with 17+ years working at Microsoft and specialized skills
Naga Santhosh in cloud computing and AI. I lead a team of SDEs focused on initiatives in the Azure
Reddy Vootukuri SQL deployment space, where we emphasize high availability for SQL customers
@sunnynagavo during critical feature rollouts. Aside from work, I am a technical book reviewer for
@naga-santhosh- Apress, Packt, Pearson, and Manning publications; judge hackathons; mentor junior
reddy-vootukuri engineers on ADPList and Code Path.org; and write for DZone. I am also a senior
IEEE member working on multiple technical committees.
Artificial intelligence (AI) has emerged as one of the defining technologies of the 21st century. It has transformed
both our personal and professional lives, and its rapid advancement will continue to reshape the ways in which
businesses operate. Business leaders largely recognize the generational opportunity that AI presents and feel
tremendous pressure to harness this potential. Findings from our Cisco 2024 AI Readiness Index show that the
race to integrate AI into increasingly critical functions is impeded by a few practical challenges — and AI security is
among the most prominent.
As AI systems handle increasingly sensitive workloads in vital sectors such as healthcare, finance, and defense,
the need for robust safety and security measures becomes nonnegotiable. The threat landscape for AI is novel,
complex, and not effectively addressed by traditional cybersecurity solutions. Similarly, streamlining the integration
of AI capabilities while adhering to new compliance frameworks and regulations can make AI adoption feel
overwhelming and costly.
Developments in AI Policy
2024 saw a big wave of new AI policy developments. In the United States alone, state lawmakers introduced more
than 700 AI-related bills — 113 of which were enacted into law — across 45 states. The pace of policy activity has not
slowed in 2025. Within the first couple of weeks of the year, 40 AI-related bill proposals were already on the docket
in the US.
Globally, no standard approach has emerged across nation states to regulate AI. Governments have drawn on a
wide-ranging AI policy toolkit, from comprehensive laws, specific regulations for use-case-specific applications, and
national AI strategies to voluntary guidelines and standards.
AI can introduce social and economic risks alongside potential substantial economic growth opportunities,
challenging jurisdictions to balance fostering innovation against managing associated risks. As we have observed, AI
governance often begins with the rollout of a national strategy before moving toward legislative action.
Recent changes, like the new presidential administration in the United States, have already set a new tone for AI
policy in 2025, with the administration focusing on economic and national security implications of AI and creating an
enabling environment for AI innovation.
This shift was further amplified by the AI Action Summit held in Paris, which brought together international Heads of
State, government officials, and leaders of international organizations and demonstrated growing support for a pro-
innovation approach and investments in AI infrastructure, notably by French and British leaders. This support was
shared by European leaders in the wake of the initial roll out of EU AI Act requirements — the first comprehensive AI
law to be enacted.
While the advancement and adoption of AI/ML technology have paved the way for copious new business
opportunities, it also complicates the risk and threat environments: The rapid adoption of AI technology or AI-enabled
technology has led to an expanded attack surface and novel safety and security risks.
In addition to maintaining our taxonomy of security and safety risks, Cisco's AI security team is worried about the
following potential threats in AI for the rest of 2025:
• Security risks to AI models, systems, applications, and infrastructure from both direct compromise of AI assets
as well as vulnerabilities in the AI supply chain
• The emergence of AI-specific attack vectors targeting large language models (LLMs) and AI systems
(e.g., jailbreaking, indirect prompt injection attacks, data poisoning, data extraction attacks)
• Use of AI to automate and professionalize threat actor cyber operations, particularly in social engineering
While these threats might be on the horizon for 2025 and beyond, threats in 2024 mainly featured AI enhancing
existing malicious tactics rather than aiding in creating new ones or significantly automating the kill-chain.
Most AI threats and vulnerabilities are low to medium risk by themselves, but those risks combined with the
increased velocity of AI adoption and the lagging development, implementation, and adherence to accompanying
security practices will ultimately increase organizational risks and magnify potential negative impacts (e.g., financial
loss, reputational damage, violations of laws and regulations).
AI Security Research
Over the last year, Cisco's AI researchers led and contributed to several pieces of groundbreaking research in key
areas of AI security. Key findings and real-world implications of our various AI security research initiatives include:
• Algorithmic jailbreaking attack models with zero human supervision, enabling adversaries to automatically
bypass protections for even the most sophisticated LLMs. This method can be used to exfiltrate sensitive data,
impact services, and harm businesses in other ways.
• Fine-tuning models can break their safety and security alignment, meaning that improved contextual
relevance for AI applications can inadvertently make them riskier for enterprise use.
• Simple methods for poisoning and extracting training data demonstrate just how easily the data used to train
an LLM can be discreetly tampered with or exfiltrated by an adversary.
Conclusion
While AI applications are fundamentally different from traditional web applications, the underlying concepts of AI
security aren't entirely unique; they reflect many familiar principles from traditional cybersecurity practices. As AI
itself and the threats to AI systems continue to evolve rapidly, it's important for organizations to combine findings
from both academic research and third-party threat intelligence to inform AI protections and security policies so that
they are relevant and resilient.
This article is a summarized version of our State of AI Security report. For the full report with recommendations on
implementing AI security, visit www.cisco.com/go/state-of-ai-security.
Generative AI (GenAI) is transforming how organizations operate, enabling automation, content generation, and
intelligent decision making at an unprecedented scale. From AI-powered chatbots to advanced code generation and
creative design, GenAI is revolutionizing industries by increasing efficiency and innovation. However, alongside these
advancements come significant security risks that organizations must address.
The challenge is that as AI systems become more intelligent and sophisticated, they also face evolving threats and
risks. Ensuring AI security throughout development and deployment is crucial.
This article provides practical checklists to help enterprises securely adopt GenAI. By understanding key security
risks, implementing essential technologies, and following best practices, organizations can harness the power of
GenAI while ensuring their data, models, and users remain protected.
Generative AI can expose sensitive data, leading to legal violations under regulations like GDPR and HIPAA.
Organizations face legal, financial, and reputational risks if AI models process confidential information without
safeguards. Ensuring compliance requires strict data handling, access controls, and regular audits.
For example, in 2023, Samsung employees accidentally leaked confidential company data by entering it into
ChatGPT, raising serious concerns about corporate data privacy and AI misuse. Learn more about the accidental data
leak here.
☐ Restrict AI access to sensitive data using role- ☐ Audit AI interactions for compliance with
based controls GDPR, HIPAA, etc.
☐ Implement data anonymization and ☐ Use AI governance tools to enforce data
encryption before AI processing protection policies
AI models can generate false or misleading information, commonly called hallucinations. AI may reinforce
stereotypes and produce unfair outcomes if trained on biased data. Organizations must ensure that AI-generated
content is accurate, ethical, and free from bias. An incident of this nature occurred in 2023 when an AI-powered news
website published misleading and fake articles, causing public misinformation and damaging its credibility. To avoid
misinformation and bias:
☐ Test AI models regularly for bias and accuracy ☐ Establish AI ethics guidelines to ensure
responsible usage
☐ Use diverse, high-quality training data
☐ Implement human review for critical AI outputs
Unauthorized users can access AI models without proper security measures, leading to data theft or manipulation.
Both insiders and external hackers pose a risk, especially if API security is weak or misconfigured. In one case, a
misconfigured AI chatbot publicly exposed user conversations due to API vulnerabilities, compromising privacy. Here
is a checklist to prevent unauthorized access and misuse issues from happening to you:
☐ Enforce multi-factor authentication (MFA) ☐ Monitor AI activity logs for suspicious behavior
for AI access
☐ Conduct regular security audits and
☐ Implement role-based access controls penetration tests
4. Data Poisoning
Attackers can manipulate AI training data by injecting malicious inputs and corrupting model outputs. This can lead
to biased decisions, misinformation, or exploitable vulnerabilities. In one experiment, researchers demonstrated how
poisoning AI datasets could manipulate facial recognition systems, causing them to misidentify people. Here is a
checklist to prevent data poisoning:
☐ Validate and clean training data before ☐ Deploy anomaly detection tools to identify
AI processing poisoned data
☐ Use differential privacy to prevent data ☐ Retrain models with verified and diverse
manipulation datasets
Fraudsters create fake AI tools mimicking ChatGPT or other AI services to trick users into sharing sensitive data or
installing malware. These fake versions often appear as mobile apps, browser extensions, or phishing websites that
look nearly identical to real AI platforms. Some have even been found in official app stores, making them seem more
trustworthy to unsuspecting users. Once installed, they can steal login credentials and financial information or even
spread harmful software across devices.
☐ Use only official AI tools from verified sources ☐ Deploy security tools to detect fraudulent
AI services
☐ Educate employees on fake AI and
phishing scams ☐ Report fake AI platforms to authorities
Attackers can extract proprietary AI models by exploiting APIs and analyzing responses, leading to intellectual
property theft and competitive disadvantage. As found in North Carolina State University's research, "Researchers
have demonstrated the ability to steal an artificial intelligence (AI) model without hacking into the device where
the model was running. The technique is novel in that it works even when the thief has no prior knowledge of the
software or architecture that supports the AI."
The diagram illustrates the model-stealing process, where an attacker sends multiple queries to a target machine
learning model and collects the corresponding responses. Using these inputs and outputs, the attacker then
trains a stolen model that mimics the behavior of the original, potentially leading to intellectual property theft and
unauthorized use.
☐ Limit API access and enforce request ☐ Use watermarking to track unauthorized usage
rate limits
☐ Monitor API activity for suspicious
☐ Encrypt AI models during deployment extraction patterns
Hackers can reverse-engineer AI models to recover sensitive training data, potentially exposing confidential or
personal information. In one instance, researchers reconstructed faces from a facial recognition AI model, revealing
private user data used in training. Andre Zhou gathered a list of resources and research related to model inversion
attacks in his GitHub Repository.
A model inversion attack is similar to a model stealing attack. A model inversion attack extracts sensitive training
data by analyzing model outputs, infers private input data, posing a privacy risk, and grants attackers access to
confidential or personal data. Meanwhile, a model stealing attack replicates a target model’s functionality using
queries and responses, enables intellectual property theft by recreating the model, and allows attackers to obtain a
functional copy of the model’s behavior.
Here are steps you can take to prevent model inversion attacks:
☐ Use differential privacy to protect training data ☐ Apply adversarial defenses to prevent
inversion attacks
☐ Restrict model exposure by limiting API
responses ☐ Assess AI models for vulnerabilities regularly
AI can generate highly realistic phishing emails, deepfake videos, and voice impersonations, making social
engineering attacks more effective. For example, cybercriminals used AI-generated voices to impersonate company
executives at a European company, successfully authorizing fraudulent financial transactions amounting to €220,000.
The following are measures that can be taken to prevent AI-enhanced social engineering:
Data loss prevention (DLP) solutions monitor and control data flow to prevent sensitive information from being
leaked or misused. Here are some ways to incorporate DLP solutions:
☐ Use AI-driven DLP tools to detect and block ☐ Monitor AI-generated outputs to prevent
unauthorized data sharing unintentional data leaks
☐ Apply strict data classification and access ☐ Regularly audit logs for suspicious activity
policies
2. Zero-Trust Architecture
Zero-trust architecture (ZTA) enforces strict access controls, verifying every request based on identity, context, and
least privilege principles. Here is a checklist to implement zero-trust architecture:
Encryption secures AI data at rest and in transit, while confidential computing protects sensitive AI operations in
secure environments. Here is a checklist to implement encryption and confidential computing:
☐ Encrypt data using AES-256 for storage and ☐ Implement homomorphic encryption for
TLS 1.2+ for transmission privacy-preserving AI computations
☐ Use hardware-based secure enclaves for ☐ Regularly update cryptographic protocols to
AI processing prevent vulnerabilities
Conclusion
Securing generative AI means taking the proper steps to protect data, models, and users; therefore, organizations
must continuously improve their security strategies and proactively address key security risks. This can be done in
part by incorporating strong access controls, data protection policies, and regular security tests, and doing the proper
research to ensure organizations are meeting their own needs as well as regulatory requirements. By following the
checklists presented in this article, organizations can safely and innovatively use generative AI.
References:
• "Fake ChatGPT apps spread Windows and Android malware" by Graham Cluley
• "DeepSeek Data Leak Exposes 1 Million Sensitive Records" by Lars Daniel
• "Samsung Bans ChatGPT Among Employees After Sensitive Code Leak" by Siladitya Ray
• "Face Reconstruction from Face Embeddings using Adapter to a Face Foundation Model" by Hatef Otroshi
Shahreza, et al.
• "Researchers Demonstrate New Technique for Stealing AI Models" by Matt Shipman
• "How Cybercriminals Used AI To Mimic CEO's Voice To Steal £220,000" by Think Cloud
• "The rise of AI fake news is creating a 'misinformation superspreader'" by Pranshu Verma
• "A Comprehensive Guide to Access and Secrets Management: From Zero Trust to AI Integration — Innovations in
Safeguarding Sensitive Information" by Boris Zaikin
Leading architect with solid experience designing and developing complex solutions
Boris Zaikin based on the Azure, Google, and AWS clouds. I have expertise in building distributed
@borisza systems and frameworks based on Kubernetes and Azure Service Fabric. My areas of
boriszaikin.com interest include enterprise cloud solutions, edge computing, high-load applications,
multitenant distributed systems, and IoT solutions.
Solutions Directory
This directory contains generative AI, ML, and various AI-powered tools to help you
streamline workflows, increase efficiency, and improve accuracy. It provides pricing data and
product category information gathered from vendor websites and project pages. Solutions
are selected for inclusion based on several impartial criteria, including solution maturity,
technical innovativeness, relevance, and data availability.
[24]7.ai Engagement
AI-powered contact center as a service By request 247.ai/247-engagement-cloud
Cloud
Aisera Agentic AI
Securely deploy agentic AI By request aisera.com/platform
Platform
Amazon SageMaker Build, train, and deploy ML models Free tier aws.amazon.com/sagemaker
Apache MLlib Scalable ML library for Apache Spark Open source spark.apache.org/mllib
Freshworks Freshchat AI-power bots and live chat Trial period freshworks.com/live-chat-software
IBM SPSS Modeler Visual data science and ML tool Trial period ibm.com/products/spss-modeler
intel.com/content/www/us/en/developer/tools/
Intel Geti Build AI models at scale By request
tiber/edge-platform/model-builder.html
KNIME Analytics
Data analytics, reporting, and integration Free knime.com/knime-analytics-platform
Platform
MavenAGI Agent
Multi-surface GenAI for customer support By request mavenagi.com/products
Maven
Microsoft Azure AI
Build, evaluate, and deploy GenAI solutions Free tier ai.azure.com
Studio
Microsoft Azure
Spatial computing developer kit with AI Free tier azure.microsoft.com/en-us/products/kinect-dk
Kinect DK
Milvus Vector database built for GenAI apps Open source milvus.io
nvidia.com/en-us/data-center/products/ai-
NVIDIA AI Enterprise End-to-end production AI Trial period
enterprise
OpenText
AI-powered data analytics By request opentext.com/products/ai-and-analytics
Analytics Cloud
PyTorch 3D Library for deep learning with 3D data Open source pytorch3d.org
Sherpa.ai Federated
Privacy-preserving AI model training By request sherpa.ai/platform
Learning Platform
Stability AI Stable
Image generation tool Trial period stability.ai/stable-assistant
Assistant
Stability AI Stable
High-resolution image synthesis Open source github.com/Stability-AI/stablediffusion
Diffusion
Stability AI Stable
Community interface for GenAI Open source github.com/Stability-AI/StableStudio
Studio
University of Waikato
ML for data stream mining Open source moa.cms.waikato.ac.nz
MOA
University of Waikato
ML algorithms for data mining tasks Open source waikato.github.io/weka-wiki
Weka