New Delhi
The adoption of Artificial Intelligence (AI) is on a notable ascent, marked by an increase in acceptance from 9.2 percent in the United States during the second quarter of 2025 to 9.7 percent in the subsequent quarter, according to a recent report by UBS, an investment banking and financial services powerhouse.
This trend indicates the industry is poised to achieve a significant milestone—an AI adoption rate surpassing 10 percent by year-end. Such a threshold is often regarded as a pivotal point, heralding the onset of rapid, exponential growth in technological advancements.
Remarkably, the journey to this initial 10 percent adoption has only spanned three years, a stark contrast to the five years it took for smartphones and a staggering 24 years for e-commerce, the report further elaborated.
“Generative AI is projected to hit the first 10 percent adoption mark in the U.S. within three years, compared to five years for smartphones and 24 years for e-commerce,” the report asserts.
This accelerated trajectory hints at the imminent arrival of what analysts describe as the “exponential adoption phase” within the AI sector.
Drawing comparisons to the smartphone explosion, the report highlights that once smartphones breached the 10 percent adoption threshold, their penetration skyrocketed from 10 percent to 68 percent within the following five years.
This was fueled by a rapidly evolving ecosystem consisting of app stores, larger device formats, and budget-friendly platforms like Android.
Likewise, the AI ecosystem is exhibiting signs of readiness for a swift scale-up. Critical catalysts include advancements in reasoning models, substantial commitments from enterprises—both large and small—and robust funding trends that bolster innovation while curbing costs.
The UBS findings align with the latest quarterly insights from the U.S. Census Bureau, derived from its Business Trends and Outlook Survey, which monitors AI adoption across over a million American firms and indicates steady sequential growth in acceptance rates.
“We anticipate the AI industry to cross the crucial milestone of a 10 percent adoption rate by the end of 2025. In this analysis, we juxtapose the generative AI adoption cycle against the historical arcs of e-commerce and smartphone technology,” the report noted.
“We conclude that the likelihood of the AI industry entering an exponential adoption phase soon is high, a phase that will disproportionately benefit companies engaged in the intelligence and application layers,” the report added.
In comparing the current AI adoption curve with previous technological revolutions—namely smartphones and e-commerce—the report positions generative AI as one of the fastest-adopting technologies in the annals of U.S. history.
Given these trends, UBS opines that companies navigating the intelligence and application layers of the AI landscape are best situated to capitalize on the forthcoming wave of expansion.
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