McKinsey Technology Trends Outlook 2025
McKinsey Technology Trends Outlook 2025
https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-top-trends-in-tech
In addition to the growing reach of AI, another new trend we have chosen to highlight in this year’s report is agentic AI, which has rapidly emerged as a major focus of interest and experimentation in enterprise and consumer technology. Agentic AI combines the flexibility and generality of AI foundation models with the ability to act in the world by creating “virtual coworkers” that can autonomously plan and execute multistep workflows. Although quantitative measures of interest and equity investment levels are as yet relatively low compared with more established trends, agentic AI is among the fastest growing of this year’s trends, signaling its potentially revolutionary possibilities.
From the rise of robotics and autonomous systems to the imperative for responsible AI innovations, this year’s technology developments underscore a future where technology is more adaptive, collaborative, and integral to solving global problems. This is illuminated by themes that cut across trends this year:
The rise of autonomous systems. Autonomous systems, including physical robots and digital agents, are moving from pilot projects to practical applications. These systems aren’t just executing tasks; they’re starting to learn, adapt, and collaborate. Autonomy is moving toward broad deployment, whether through coordinating last-mile logistics, navigating dynamic environments, or acting as virtual coworkers, among other skills.
New human–machine collaboration models. Human–machine interaction is entering a new phase defined by more natural interfaces, multimodal inputs, and adaptive intelligence. From immersive training environments and haptic robotics to voice-driven copilots and sensor-enabled wearables, technology is becoming more responsive to human intent and behavior. This evolution is shifting the narrative from human replacement to augmentation—enabling more natural, productive collaboration between people and intelligent systems. As machines get better at interpreting context, the boundary between operator and cocreator continues to dissolve.
Scaling challenges. The surging demand for compute-intensive workloads, especially from gen AI, robotics, and immersive environments, is creating new demands on global infrastructure. Data center power constraints, physical network vulnerabilities, and rising compute demands have exposed cracks in global infrastructure. But the challenge isn’t just technical: Supply chain delays, labor shortages, and regulatory friction around grid access and permitting are slowing deployments. As a result, scaling now means solving not only for technical architecture and efficient design but also for the messy, real-world challenges in talent, policy, and execution.
Regional and national competition. Global competition over critical technologies has intensified. Countries and corporations have doubled down on sovereign infrastructure, localized chip fabrication, and funding technology initiatives such as quantum labs. This push for self-sufficiency isn’t just about security; it’s about reducing exposure to geopolitical risk and owning the next wave of value creation. The result is a new era of tech-driven competition where nations have a stake in critical industries.
Scale and specialization are growing simultaneously. Growth on these vectors is enabled by innovation in cloud services and advanced connectivity. On one hand, we see rapid growth in general-purpose model training infrastructure in vast, power-hungry data centers, while on the other, we observe accelerating innovation “at the edge,” with lower-power technology embedded in phones, cars, home controls, and industrial devices. This is creating ecosystems that deliver massive large language models with staggering parameter counts, as well as a growing range of domain-specific AI tools that can run almost anywhere. Leaders will balance centralized scale with localized control: Think modular microgrids for clean energy or bespoke robotics for niche manufacturing.
Responsible innovation imperatives. As technologies become more powerful and more personal, trust is increasingly the gatekeeper to adoption. Companies face growing pressure to demonstrate transparency, fairness, and accountability, whether in AI models, gene editing pipelines, or immersive platforms. Ethics are no longer just the right thing to do but rather strategic levers in deployment that can accelerate—or stall—scaling, investment, and long-term impact.
The rise of autonomous systems. Autonomous systems, including physical robots and digital agents, are moving from pilot projects to practical applications. These systems aren’t just executing tasks; they’re starting to learn, adapt, and collaborate. Autonomy is moving toward broad deployment, whether through coordinating last-mile logistics, navigating dynamic environments, or acting as virtual coworkers, among other skills.
New human–machine collaboration models. Human–machine interaction is entering a new phase defined by more natural interfaces, multimodal inputs, and adaptive intelligence. From immersive training environments and haptic robotics to voice-driven copilots and sensor-enabled wearables, technology is becoming more responsive to human intent and behavior. This evolution is shifting the narrative from human replacement to augmentation—enabling more natural, productive collaboration between people and intelligent systems. As machines get better at interpreting context, the boundary between operator and cocreator continues to dissolve.
Scaling challenges. The surging demand for compute-intensive workloads, especially from gen AI, robotics, and immersive environments, is creating new demands on global infrastructure. Data center power constraints, physical network vulnerabilities, and rising compute demands have exposed cracks in global infrastructure. But the challenge isn’t just technical: Supply chain delays, labor shortages, and regulatory friction around grid access and permitting are slowing deployments. As a result, scaling now means solving not only for technical architecture and efficient design but also for the messy, real-world challenges in talent, policy, and execution.
Regional and national competition. Global competition over critical technologies has intensified. Countries and corporations have doubled down on sovereign infrastructure, localized chip fabrication, and funding technology initiatives such as quantum labs. This push for self-sufficiency isn’t just about security; it’s about reducing exposure to geopolitical risk and owning the next wave of value creation. The result is a new era of tech-driven competition where nations have a stake in critical industries.
Scale and specialization are growing simultaneously. Growth on these vectors is enabled by innovation in cloud services and advanced connectivity. On one hand, we see rapid growth in general-purpose model training infrastructure in vast, power-hungry data centers, while on the other, we observe accelerating innovation “at the edge,” with lower-power technology embedded in phones, cars, home controls, and industrial devices. This is creating ecosystems that deliver massive large language models with staggering parameter counts, as well as a growing range of domain-specific AI tools that can run almost anywhere. Leaders will balance centralized scale with localized control: Think modular microgrids for clean energy or bespoke robotics for niche manufacturing.
Responsible innovation imperatives. As technologies become more powerful and more personal, trust is increasingly the gatekeeper to adoption. Companies face growing pressure to demonstrate transparency, fairness, and accountability, whether in AI models, gene editing pipelines, or immersive platforms. Ethics are no longer just the right thing to do but rather strategic levers in deployment that can accelerate—or stall—scaling, investment, and long-term impact.
Costa Rica performance looks familiar
https://www.hotelinvestmenttoday.com/Forecasts/Costa-Rica-performance-looks-familiar
INTERNATIONAL REPORT – New research from STR suggests recent hotel performance in Costa Rica resembles other leisure destinations frequented by Americans. Specifically, luxury outperforms.
STR’s Hannah Smith said that pre-2020, Costa Rica closely mirrored hotel performance in the Caribbean, with similar patterns and levels of growth. This continued in the initial post-pandemic recovery, with occupancy in both areas stabilizing in 2023 and showing some softening in 2025.
It is important to remember, though, the Caribbean comprises a higher proportion of high-end hotels than Costa Rica. That is a contributor to the diverging paths, according to Smith.
The influence of inbound international travel in Costa Rica also helps to illustrate the “why” behind the data trends. The number of inbound international travelers remains below 2019 levels.
However, there has been a shift – a greater number of Americans traveling to the country and fewer travelers from other Central American countries. Those more “local” travelers likely represented business travelers in addition to leisure with stays spread across hotels of all price points.
U.S. travelers are mainly traveling for leisure, staying in resort areas and higher-end hotels. Because of this, most of the growth seen in Costa Rica since 2020 has been in the Guanacaste Area—and in Upper Upscale and Luxury hotels. The capital city of San Jose has struggled, with year-to-date RevPAR still below 2019 levels.
Entering 2025, occupancy had started to soften across the country, even in parts of the industry benefitting most from American travelers.
Recent months have shown slight room rate declines as well, the first such decreases since the end of 2023. Though recent months are not historically the highest performance period for the country, June and July have usually outperformed the surrounding months of May and August. So, the recent ADR declines come at a typically stronger time.
Paris Restaurants caught charging American Tourists more than locals
https://www.fodors.com/news/news/paris-restaurants-charge-american-tourists-more-than-locals-says-report
FRENCH RESTAURANTS CHARGE AMERICAN DINERS MORE
The French daily newspaper Le Parisien conducted an experiment this summer to see if Parisian restaurants charge tourists more after complaints on Reddit. Journalist Mathieu Hennequin, wearing an Eiffel Tower T-shirt, sunglasses, and a baseball cap, played an American tourist. His friend Marc Mazière acted as a French diner.
Both ate at two places, and Hennequin was never served tap water—only bottled. In one case, he was told that service was not included and was asked to tip. The French diner was served free tap water and a smaller can of Coke. The experiment showed tourists paid more for the same experience: Hennequin’s bill was €9.50 higher at one restaurant and €10 higher at another.
Keep in mind: Service is included in your bill in France, and you are not expected to tip unless you receive exceptional service. Tap water is free, and restaurants are required to provide it.
CYBERATTACK DISRUPTS EUROPEAN AIRPORTS
Passengers at several European airports faced headaches after a cyberattack paralyzed check-in systems. London Heathrow, Brussels Airport, and Berlin Brandenburg were hit hardest after Collins Aerospace, an American company providing check-in services worldwide, was targeted on Friday.
Through the weekend, flights were delayed or canceled, with many airlines resorting to manual check-in. Passengers faced long lines, and disruptions were reported across several hubs, including minor setbacks in Dublin and Cork, Ireland. Brussels Airport canceled half its flights on Monday with the system still down.
Other recent cyberattacks have also made headlines. The last major aviation incident was in July, when Australia’s Qantas suffered a massive data breach.
AIR TRAFFIC CONTROLLER TELLS PILOT TO GET OFF THE IPAD AND PAY ATTENTION
An air traffic controller reprimanded pilots of a Spirit Airlines flight last week, telling them to pay attention and get off the iPad.
The flight from Fort Lauderdale, Florida, to Boston was landing as Air Force One—carrying President Trump and First Lady Melania Trump—was en route to the U.K. The controller told the pilots to turn 20 degrees left repeatedly. The incident was captured on a recording.
The two planes were eight miles apart and never at an unsafe distance. A spokesperson from the airline said, “Spirit Airlines flight 1300 followed procedures and Air Traffic Control (ATC) instructions while en route to Boston and landed uneventfully (in Boston).” The FAA also confirmed the aircraft maintained the required separation.
The corporate travel outlook is hazy. Here’s why, according to new Deloitte study.
https://hotelsmag.com/news/corporate-travel-outlook-2025
Corporate travel continues to rise, yet the outlook in 2025 is increasingly nuanced. Companies are balancing growing travel budgets with rising costs, sustainability goals, and shifting internal priorities. While many organizations plan to increase spending, larger firms are signaling selective pullbacks, reflecting a cautious approach amid complex conditions.
Deloitte notes in its report, Deloitte: Corporate Travel Forecast a Mixed Bag Amid Complex Conditions, that “After a period of normalization, new headwinds including rising costs, shifting company priorities and sustainability considerations present potential turbulence.”
Three in four travel managers surveyed (74%) report plans to expand budgets this year, similar to 2024, but fewer (68%) expect to do so in 2026. At the same time, the share of managers anticipating cuts has risen to 10%, up from 6%. Larger companies with annual travel budgets over US$7.5 million are more likely to reduce spending, with only 59% expecting increases, compared with 80% of smaller companies.
“Corporate travel continues to be important to business and employee growth, but companies are facing potential turbulence as they adapt to conditions like rising costs and shifting internal priorities,” said Kate Ferrara, vice chair and U.S. transportation, hospitality and services sector leader, Deloitte. “This moment calls for agility and partnership between companies and their travel providers, as well as companies and their traveling employees. Understanding the goals of each trip and helping ensure the trip provides a strong return on investment is key. Meanwhile, providers who consider organizations’ travel priorities and are ready to adapt their offerings to offer the most value can be positioned to succeed long term.”
Costs are among the top travel constraints, cited by 54% of managers. To control spending, organizations focus on lodging more than airfare. International trips account for about half of spend, but destination choices continue to shift as pandemic-era restrictions ease. Corporate booking compliance remains strong, with 49% of frequent travelers always using corporate channels. Off-platform bookings through online travel agencies have declined, reflecting improved corporate booking experiences.
Why USDA program can be attractive option
https://www.hotelinvestmenttoday.com/Financials/Financing/Why-USDA-program-can-be-attractive-optionDavid Better, partner at Castle Peak Holdings, said the plan was an attractive option when the company realized the location qualified for USDA financing.
“Those were previously markets that were serviced by local or regional banks, and over the past few years that financing source has become less and less readily available,” he said. “Then you pair that with renovation or construction risk, there are fewer and fewer traditional debt capital sources active in the market right now for heavy renovation projects in these non-core MSA markets.”
Zach Chandler, vice president of Thomas Financial Group, said the program has been around since the 1980s and is a focus for the company. He estimates Thomas has closed around $5 billion in government-guaranteed lending (mostly through the USDA B&I program), with about $1.5 billion of that for hospitality (assisted-living facilities are the company’s other top niche).
The program can be used for a lot of different types of construction for smaller towns (population 50,000 and under, and usually away from major metro areas — the USDA has mapping software that determines whether an area is eligible or not). Last January, LaGrange, Georgia-based Community Bankshares acquired Thomas Financial Group (another of Community Bankshares’ verticals, Phoenix Lender Services, services the USDA loans as well).
Chandler said the USDA is a balance sheet program and has a $25 million limit per project. So, some borrowers are able to have multiple USDA loans at the same time.
“We have some borrowers that have $100-plus million in outstanding loans with USDA because of the project basis,” he said. “As long as the projects are in a different parcel and a different LLC, and standalone revenue for debt service, then you can get another $25 million.”
The loans are 30-year, fully amortized with no balloon payments. Chandler said the loan program also includes the ability for unique capital structures, which can allow borrowers to add C-PACE, historic or new market tax credits or even EB-5 as part of the capital stack. (Better said Castle Peak’s deal in Mendocino included C-PACE, for example.)
“It’s not going to be as quick as conventional lending, and there are a couple of additions we have to do with USDA that you don’t have to do with SBA,” he said.
Chandler said in a more normalized interest-rate environment, borrowers have to get creative, and USDA can reward that thinking.
“What we’ve seen is a lot of sponsors that have creative minds and creative capital stacks have been able to get a lot done and ultimately will be able to put themselves in a good spot for the future,” he said. “Because it’s not getting any cheaper to build. Interest rates are where they’re at. So, we have to figure out a way to get it done now and you’re putting yourself in a really good spot for the future.”
“It’s important to have a good intermediary guiding you through that process,” he said. “So, as you level set with your investors and your project teams, everyone’s rowing in the same direction.”
Better said since Castle Peak already owned the two properties in Mendocino, it gave the company the flexibility and time needed to get the process done.
“Depending on the duration and the prepayment flexibility you want, there’s a rate trade-off,” he said. “The USDA is not a magic bullet or cheaper than everybody else as a financing solution, but it’s a triangulation of economics, duration and structure that we ultimately found very attractive.”
But the program isn’t for all types of hospitality investors, Better said.
“We are value-add hospitality investors. So, we are coming in and spending real money to upgrade the quality of the physical plant... which allows us to qualify for something like this,” he said. “But for the avoidance of doubt, the USDA is not an attractive solution, or frankly, really a feasible one for someone who’s looking to buy a property, operate it and flip out of it in three years.”
Airbnb wants its mojo back
https://hotelsmag.com/news/airbnb-wants-its-mojo-back
by David Eisen
NEW YORK — Brian Chesky, the CEO of Airbnb, appeared on-screen, as if summoned to wring out every ounce of his company’s toil in front of an assemblage at the Skift Global Forum. It was a near facsimile to last year when the anything-but-diffident Chesky also piped in via video feed rather than in person; the only physical change was his now hirsute countenance.
But a lot has changed for Airbnb other than its CEO’s facial hair—it’s not just about Homes, anymore.
In May, Airbnb launched Services and (relaunched) Experiences after a pandemic false start—all part of a redesigned app. Why limit yourself to just a place to lay your head when you can hire a professional chef to cook a meal or engage a hair stylist to create the perfect balayage? Chefs and hair stylists are part of Airbnb’s initial 10 categories of services with more promised to come, Chesky said. “A lot of people like massages: If you can get food delivered to your door, why can’t you get a massage delivered to your door?” he said.
“I’m not happy about where the growth rate is,” Chesky said. When he launched Airbnb in 2008 with his two roommates it became, he said, a hyper-growth company. “We grew the company like a rocket ship.” It’s lost a little propulsion. “We should be growing significantly faster—at least in the teens. I aspire to run the kind of company that is growing at more than 20% one day. To be able to do that, we need to layer on many businesses. We need to essentially accelerate our business, then we need to be layering on other businesses, and that is essentially the growth algorithm that we must get to.”
The reconfigured and relaunched Experiences rises from the ashes of the pandemic, as Chesky explained. COVID cut Experiences short after its 2016 launch; thereafter, Airbnb stopped investing in it and instead pared the company down by roughly half. Chesky is matter of fact about it. “We basically said we’re not experiences. We stopped investing in it. We did a massive layoff. Then we went public [in 2020] and we have essentially spent the last five years rebuilding the company from the ground up.”
“We are now serious about hotels,” Chesky said, adding that the groundwork it laid building Services will be applied to hotels. Chesky said the focus initially will be more on boutique and independent hotels rather than globally branded properties. “What we found is that the vast majority of people that come to Airbnb, if they don’t find a home they like, they go to another website and book a hotel. If we have hotels there, they’re going to get a significant amount of bookings.” (Airbnb, Chesky said, is accessed by 1.6 billion devices a year.)
Chesky said that hotels, especially independents, also like its 15.5% commission structure, which he called the lowest in the industry. “There’s an entire market segment of people that aren’t really being served or not being served properly, and we think we can serve them through collecting the very best boutiques, the very best independents and building a first-class Airbnb interface to be able to see these hotels and give them a very compelling commission rate.”
Other shifts include a new commission structure that abandons the prior split-tier structure. Now, hosts bear the entire cost, which mimics other OTAs. Starting in late 2025, many hosts using property management systems (PMS) or those on existing single-fee plans will pay a flat 15.5% (16% in Brazil) commission deducted from their payout. In addition, Airbnb users now see the full price of a stay, inclusive of fees and taxes. “A lot of guests complain about the taxes, the cleaning fees, the service fees—there’s a lot of drip pricing. Let’s just have one price,” Chesky said.
Airbnb is making itself over as not just a purveyor of home-share accommodations but a superstore, a Walmart, an Amazon— open an app and everything travel related, and more, is at your fingertips. Will Chesky’s blueprint succeed? “Investors buy into results, not just ideas,” he said.
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