"The best AI isn’t the main event", what we learned about AI from SXSW

We've just been to SXSW 2025 in Austin Texas, which had one undeniable headliner: AI. But for once, the conversation wasn’t about AI as some looming existential threat.

The dystopian hand-wringing took somewhat of a backseat (although there were still plenty of talks positioning AI as the “disrupter” and driver of job losses). Instead, the best action focused on AI in practice and how we make it work for us, how we take control, and how we shape it to suit our needs.

AI that bends to us, not the other way around

Forget the cold, automated AI that marks many experiences. The shift at SXSW was clear: the smart money is on AI going human-first. The most exciting conversations weren’t about replacing people but giving them agency – a clear reminder that AI works best when it’s in the background, not the spotlight.

Across the auditoriums, salons and activations, the sense was clear that we should be moving beyond Large Language Models (text prompt based AI tools like ChatGPT) and passive algorithm-driven experiences toward AI that’s shaped by users – AI that's contextually aware and 'embedded' into the products and spaces we live with.

But the real evolution isn’t just Embedded AI – it’s Agentic AI. This new wave of AI isn’t just sitting in the background; it’s actively working on people’s behalf, anticipating needs, making decisions, and even taking initiative with minimal human input. Whether its health monitoring systems that proactively recommend treatment or home assistants that automate daily routines, AI is shifting from a reactive tool to a dynamic agent.

Combined with Embedded AI, which integrates AI seamlessly into everyday products and spaces, this shift moves AI beyond passive algorithms into something far more intuitive, responsive, and human-centric.

This is AI that adapts to people.

This shift brought a refreshing dose of optimism in Austin. AI isn’t here to consume us, to denigrate us; it’s here to amplify us.

The death of the AI monopoly?

One of the biggest shake-ups? A sense that AI won’t be hoarded by a few, big tech giants. Scott Galloway, prolific podcaster and professor of marketing at NYU’s Stern School of Business reinforced this point in his predictions keynote: AI’s value is as an enabler, much like GPS, the internet, in short … a utility.

Another major shift I saw was the rise in positive sentiment towards AI openness. Under this, transparency and explainability take centre stage. It’s no longer enough for AI to spit out an answer – we want to know how it got there, the sources, the considerations, the lack of any bias.

Explainable AI is, as it should, becoming a new standard, an expectation, one of building trust and transparency where, you might say, black-box algorithms once ruled.

AI in action: SXSW’s best moments

Amy Webb Launches 2025 Emerging Tech Trend Report | SXSW LIVE - YouTube

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Some of the most memorable moments at SXSW 2025 proved just how far AI has come:

● Amy Webb’s Emerging Tech Trends Report - Amy's talks are always a firehose of insight, and this was no different. Packed to the brim with the real-world examples that we need demonstrating where AI is transforming industries. From AI cultivated food to how 'meta materials' could change the environments we live in. You can, and should, watch above.

● John Maeda on UX and AI - A legendary designer and technologist, John explored some of his favourite examples (from mostly independent designers) of how AI is currently being experimented with to develop exciting new forms of digital experience - new paradigms that break with today's conventions.

● Scott Galloway’s Predictions - A marmite kind of speaker, Scott’s takes are always worth hearing. His biggest point? AI’s economic benefits won’t be monopolised and you better expect it to seep into every industry at every level, while current players, like OpenAI, are considerably over valued.

● Rene Haas on Edge AI - ARM CEO Rene laid out a future where AI lives on devices, not just the cloud. Edge AI will make real-time, intelligent interactions seamless, without waiting for a data centre to process your every move.

What does this mean for design?

How is AI going to affect graphic design? Human-centred experiences should be the bedrock of design, and SXSW 2025 only reinforced that AI should be built around people, not processes. We should remember that the best AI isn’t the main event – it’s the tool that empowers people to lead.

We all know that AI isn’t just another tool, it is clearly, unequivocally becoming a core layer of the human experience. The designers that figure out how to make it intuitive, empowering, and explainable? They’re the ones shaping the future. The rest will be just playing catch-up.