From Tokyo, Japan and Changsha, China – this is Down to Business English. With your hosts Skip Montreux and Dez Morgan. Hi Dez! How are things with you over there in China? Hey Skip, I'm doing very well. Things are going smoothly at the university where I work in Changsha. Students are making progress, we've got exam season coming up on the horizon, and then before I know it, I'll be enjoying my summer break. Wow, that sounds like you are all set!
I wouldn't say all set, there’s still a lot to do. But things are going good — no big surprises so far, anyway. What about you? How's everything going with you in the corporate language teaching world in Tokyo? Oh, it's busy! Unlike you, I don’t follow the academic, or the school calendar. Yes. I’m aware of that. Well for me, once the business year kicks off in April, it's just full speed ahead. No long breaks like school teachers have. Well, look at it this way.
You may not get long vacations, but your job is … is definitely more exciting. The people you work with are on the front lines of global business trends. Putting their language skills into practice on a daily basis. Okay, yeah that's very true for many of them. And my clients are constantly adapting to new business realities, which keeps me on my toes, which I like. Well there you go. And speaking of new global business trends, there's one in particular that is impossible to ignore right now.
And what would that be? The growth of Artificial Intelligence and its impact — not only on business, but on all of our lives. Ah yes. AI is having a major impact on my university. It’s getting more and more difficult to discern if a student’s work is actually theirs, or done by AI. Well, from the classroom to the meeting room — AI is everywhere, and today on Down to Business English, I want to report on what this means for the future. Then let’s do it. Yes. Let’s do it.
Let’s get D2B … Down to Business with The State of AI in 2025. I don’t know about you, Skip but to me it feels like AI technology is moving so fast, it’s hard to keep up. I know how you feel Dez. There is no doubt that the development of AI can feel overwhelming. But I think we need to get used to the idea that there's going to be a constant learning curve when it comes to AI. So, what is the State of AI in 2025? It’s much different now than say just a few months ago.
Let’s start by understanding what kind of AI is most common today. There are different types of AI? Yes! Generative AI is the biggest driver of the current AI boom. These are the large language models — think OpenAi’s ChatGPT-4 and Google’s Gemini 2.5. These LLMs have the ability to create new content, such as text, images, computer code, even music.
You're saying the AI uses these large language models to essentially generate things from scratch — by predicting and putting together words and data patterns they find in their model, correct? That is my understanding of what happens, yes. That is a hard concept for me to wrap my head around. I wouldn’t worry about understanding exactly how it works. Well that’s a good idea. I don’t really know how Microsoft Word or PowerPoint work either.
I just know how to use them — and they do make my life easier. That’s a great way to think about it. Just trust that AI does work, and it is getting better and better very quickly. But regardless of what’s under the hood, AI is transforming how businesses approach creativity and productivity. It really is. AI is being used in all kinds of business functions — from marketing and finance to customer service and HR. It's helping people get their work done faster and often with better results.
What kind of changes are we really talking about here? I mean, how exactly is AI transforming day-to-day work in businesses? One of the biggest changes that AI is helping professionals do more quickly is routine, time-consuming tasks. For instance, AI can write reports, draft emails, create presentation slides, and even analyze large spreadsheets. That means employees can spend less time on repetitive tasks and more time thinking strategically or indeed being creative.
And that is why AI adoption rates in companies has skyrocketed. It has? According to a report from McKinsey, in 2024 over 78% of organizations around the world were using AI in at least one business function. And in the US, that number is even higher. Which means there are a lot of companies out there who are more productive than say just a few short years ago. But this rapid adoption is coming with a real human cost — especially in the tech sector. I’ve read about layoffs in that sector.
They are related to AI? Absolutely, and the numbers are staggering. Since the start of this year alone, it is estimated that the tech industry has seen between 60,000 and 90,000 layoffs, internationally. Wow! And U.S. companies account for nearly three-quarters of those cuts. Major firms like Microsoft, Google, Meta, Intel, CrowdStrike, and even IBM have all announced significant job reductions. And are all of these layoffs just because of AI? For the most part, yes.
AI is becoming a central part of how tech companies operate, and that shift is leading to widespread job losses across certain roles. Who exactly is getting the axe? Jobs are being cut in traditional areas like coding, data analysis, and even roles in AI development itself. As AI becomes more advanced, it can develop itself. That’s a bit of a paradox, isn’t it? Investing in AI, but also cutting AI jobs? It is. And it just shows how disruptive this technology can be.
Are there any particular jobs that are safe from AI? Whether it be in tech or in other industries? Good question. According to the World Economic Forum, jobs that involve repetitive tasks — like data entry, or scheduling, and even customer service — they are most at risk. But on the other hand, roles that require creativity or problem-solving, or decision making, are more resilient. For now, perhaps. As AI improves, even those jobs will be at risk. So, no one is safe?
Well the reality is nobody, even the experts, knows for certain. But if you look at the exponential development of what AI is capable of, just in the last 18 months, it is hard not to be worried. But it’s not just job losses and disruption, is it? There are some exciting benefits on the horizon too. Oh yes, there are definitely benefits. To me, what is most exciting is how AI can expand what professionals can do and the amount of time it takes them. What do you mean?
For example, I have a student who works in the marketing department of her company. She uses AI to analyze huge amounts of customer data and then uses that data to design marketing campaigns. Okay. And in the past, that kind of work would have taken her and her team weeks to do. She can now complete it on her own in just a few days — or perhaps even several hours, using AI. Well, that does sound like a big upgrade from A/B testing and guesswork. Exactly.
And in client-facing industries — like consulting, finance, even legal services — professionals are using AI tools to prepare for meetings, summarize contracts, or practice high stake negotiation scenarios. And AI isn’t replacing anyone in these examples? In all of these examples, a human decision maker, or a human-in-the-loop, is needed to guide the whole process. Using AI is like having a junior assistant on call 24/7. So we’re not talking about replacing humans with robots.
We’re talking about giving people tools that help them work more efficiently and produce better results. Right. Fundamentally, AI can reduce your workload, sharpen your insights, and help you make better decisions. That, in my opinion, is where the real advantage is. And I guess AI also levels the playing field for the little guy. Smaller companies with limited resources can use these tools to compete with larger competitors. AI is a democratizing force.
Just imagine, a freelance consultant can now potentially offer the same services as a major consultancy firm, thanks to AI tools. But that consultant still needs to know how to ask the right questions and interpret the answers. AI doesn’t replace judgment or experience. Very true. The business professionals who will thrive in this new AI landscape are the ones who treat AI as a collaborator, not a replacement. Well, I am glad to hear it's not all doom and gloom.
But do you know who I am most worried about? No, who? New university graduates who are just now trying to enter the workforce. AI poses the most risk to them in terms of job displacement. Of course. AI can easily do the tasks they are usually assigned, and they don’t yet have the necessary experience to be a value to the company.
In fact, just the other day Anthropic CEO Dario Amodei, in an interview with Axios, said AI could eliminate up to 50% of all entry-level white-collar jobs within the next five years in the areas of finance, tech, law, and consulting. 50%!?? That’s unfathomable! It could push unemployment rates in the United States to between 10% to 20%.
I don’t know Skip. One minute I’m all excited by these advancements in technology, the next minute I’m shaking in my boots — convinced that AI is going to be the end for all of us. Well, don’t panic there Dez. We are definitely in the middle of a major change, perhaps on the scale of the industrial revolution. But I am certain humankind will adapt. We have before. I hope you are right. Now, having said that — I do think it is in everyone’s interest to start developing AI skills.
Knowing how to use and make the most of all of these AI tools is going to be essential in the workplace within the next two years. That’s a good piece of advice. I suppose the same goes for the world of education. Absolutely. WelI it sounds like I need to take a course or two on prompt engineering basics. Well, I would at least watch some YouTube videos on the topic. That’s a good place to start. And on that note, I think it is time for us to get D2V … Down to Vocabulary.
I want to start D2V off with the phrase ‘the state of something’. Like the state of Texas? Or the state of California in the United States? Same spelling, same sound, but different meaning. When you’re talking about the state of something, you are referring to its current condition, situation, or status. Especially when that ‘something’ is complex — like a business or an industry, or a technology. And that is why we used it in the title of today’s episode — The State of AI in 2025.
We were talking about the condition or status of artificial intelligence in 2025. So not the future of AI, not the past — just a clear look at where AI stands today, and the impact it’s having. You often hear this phrase used in business situations. For example, you might hear your manager say something like, “Before we move forward with designing a new product, we need to fully understand the state of the market.”
In other words, we need a clear picture of the market conditions, prices, supply chains, competition — before making any big decision. What’s our next word on the D2V list. Next up is the verb ‘to discern’. This means to recognize or identify something clearly, especially when it’s not easy to see or understand right away. When it is not obvious.
In the introduction to today’s episode, I said that it was getting more and more difficult to discern if a student’s work is actually theirs, or done by AI. Dez was saying that it was hard for him to tell whether his students were doing their own assignments, or using artificial intelligence tools to do them for them. Exactly. You often hear this verb in business or academic settings, especially when people have to make careful decisions or judgments. Can you give us an example of that?
Sure. When the stock market drops, financial analysts need to discern whether it’s a short-term dip or a serious long-term trend. Alright, our next and final item on today’s D2V list is the informal expression ‘to wrap your head around something’. When you wrap your head around something, it means you understand something difficult or confusing. And when you cannot wrap your head around it — it means you just can’t understand it.
It’s a very visual idiom — almost like you’re trying to stretch your brain around an idea so you can make sense of it. That’s a very good visual image to help you remember that expression. In today’s episode, Dez said that the way large language models work was a hard concept for him to wrap his head around. In other words, I was saying it was difficult for me to fully understand. Skip — can you give us an example of this expression in a business context?
Do you remember back in 2022 when Elon Musk bought Twitter for $44 billion? Who can forget that? Well, I can understand why he bought Twitter — but to this day, I still cannot wrap my head around why he changed the name from Twitter to X. What in the world was he thinking? Would you like to help Down to Business English reach more people wanting to improve their Business English skills? Follow Down to Business English on Apple Podcasts, YouTube Music, Spotify, or any place podcasts are found.
Leave a rating and a review and tell everyone how much you enjoy the show. And that brings us to the end of today’s report on the state of AI. Skip — thanks for that report and for sharing your insights. My pleasure, Dez. It’s clear that AI is reshaping more than just business — it’s going to change how we all live and the way we do things. There is no doubt about that.
D2B members and Apple Podcast subscribers, be sure to check out the Bonus Down to Vocabulary episode which will be released sometime in the next few days. In that bonus D2V, we’ll be taking a closer look at five more words and expressions that came up in today’s report — all of them especially useful for talking about technological change, and decision-making. Those words and expressions are: to keep someone on their toes, to be under the hood, disruptive, democratizing, and displacement.
D2B Members, to access the bonus D2V episode be sure to copy your private podcast feed URL from your account page on the D2B website and paste it into your preferred podcast application. And Apple Podcast Subscribers — there is no need to do anything. The bonus D2V episode will show up in your feed just like magic.
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