From exponential compute to persistent memory, the cognitive revolution is already crossing borders and industries. At Kylla, we explore the five trends and five themes that are shaping global innovation and investment opportunities beyond borders.
Every economic revolution has its builders. In the past, they were the industrial titans who mastered steel, oil, and electricity. Today, they are the entrepreneurs and startups harnessing artificial intelligence to create entirely new business models. The opportunity is enormous, estimated at €10 trillion, and it is happening at unprecedented speed. For investors, success depends on recognising the forces driving this change now, and identifying the themes that will shape the next generation of industry leaders. At Kylla, we see five investment trends defining the present, and five investment themes that point to the future.
Five Investment Trends Defining AI Today
The first trend is Leverage Over Uncertainty. AI introduces extraordinary productivity gains, enabling one individual to manage hundreds of tasks simultaneously through agents that monitor, analyse, and act in real time. While this creates leverage of 100 or even 1,000 times, it also introduces new uncertainties. Outcomes may not always mirror human judgement, requiring human oversight to correct or refine results. This blend of scale and unpredictability is becoming the new normal in AI-driven work.
The second trend is Real-World Validation. For much of its history, AI was measured against academic benchmarks. Today, the only true measure of success is performance in the real world. Companies must prove their models against live data, competitive environments, and real business outcomes. The gold standard is no longer theoretical accuracy, but demonstrated effectiveness in practice.
The third trend is Reinforcement Learning, a technique that has moved from the periphery of research to the centre of AI’s progress. By allowing models to learn iteratively through trial, error, and feedback, reinforcement learning is driving breakthroughs across fields such as coding, robotics, and open-source AI development. It has become a cornerstone of innovation, enabling models to adapt dynamically to complex environments.
The fourth trend is AI in the Physical World. AI is no longer confined to digital tasks. It is being deployed in manufacturing, quality assurance, logistics, and even the design of new hardware. By embedding intelligence directly into physical processes, AI is collapsing the boundary between software and the material world, creating efficiencies that reshape entire industries.
Finally, the fifth trend is Compute as the New Production Function. If steam powered the industrial revolution, compute power fuels the cognitive revolution. Knowledge workers will increasingly rely on vast computational resources, with companies forecasting tenfold to thousandfold increases in compute consumption per employee. This dramatic escalation underscores how central compute capacity has become to productivity, innovation, and competitive advantage.
Five Investment Themes for the Year Ahead
While these trends describe the present, the future will be defined by five investment themes.
The first is Persistent Memory. For AI to operate effectively in complex organisations, it must not only process information in the moment but also retain long-term context and maintain a consistent identity. Persistent memory will be crucial for AI systems to integrate seamlessly into workflows and deliver real, sustained value.
The second is Communication Protocols. Just as TCP/IP laid the foundation for the internet, new protocols will allow AI systems to communicate autonomously with one another. This breakthrough will enable applications such as autonomous commerce, where AI agents can research, negotiate, and execute transactions without human intervention, fundamentally reshaping how markets operate.
The third theme is AI Voice, which has already achieved the fidelity and speed required for real-world use. Real-time voice interactions are transforming sectors ranging from consumer applications such as AI companions to enterprise fields like logistics and financial trading, where spoken coordination remains essential. Voice is becoming the interface that bridges human and machine in everyday operations.
The fourth theme is AI Security. As AI becomes embedded in every layer of business and society, securing its development, distribution, and use will be critical. This includes protecting foundation models, preventing vulnerabilities in distribution, and safeguarding end users. In the future, we may see not just human security systems, but swarms of AI security agents protecting individuals, organisations, and even other AI agents.
The fifth theme is Open Source AI. The future of AI must not be left solely in the hands of a few dominant corporations. Open source models ensure accessibility, foster innovation, and prevent concentration of power. A thriving open-source ecosystem is essential for building a more competitive and inclusive AI economy, one where entrepreneurs and smaller players can innovate alongside the giants.
The Path Forward
The industrial revolution took centuries to reach maturity. By contrast, the cognitive revolution is compressing decades of progress into just a few years. The “specialisation imperative” that once slowed development has now become an accelerant, as startups and new ventures rapidly build specialised applications on top of general-purpose AI platforms.
At Kylla, we believe the great builders of this era will not be the industrial titans of the past, but the startups of today and the entrepreneurs of tomorrow. These innovators will define how AI transforms industries, expands markets, and creates entirely new business models.
Kylla Perspective: What This Means for Our Clients
For our clients and partners, the message is clear: artificial intelligence is not an optional trend, it is the defining investment theme of our time. The five investment trends shaping today’s landscape show where the opportunities are emerging right now, while the five themes for the coming 12 to 18 months highlight where capital, innovation, and competitive advantage will flow next.
On September 12th, I attended the graduation ceremony for my Master’s in Artificial Intelligence for Business at the Bologna Business School, held in the historic Piazza Maggiore. That milestone marked the conclusion of an academic journey that deepened my conviction about the transformative power of AI. What I studied in theory, I now see rapidly unfolding in practice across industries and markets. The five trends and five themes we highlight in this article are therefore more than abstract insights; they are the forces actively reshaping business and investment opportunities across borders.
Kylla’s role is to help investors and entrepreneurs position themselves to benefit from this transformation. We bring cross-border experience, deep networks, and an understanding of how disruptive technologies move from promise to scale. Just as we have guided clients through the growth of cloud, fintech, and clean energy, we are committed to ensuring that those we work with are well-placed to seize the immense potential of the cognitive revolution.
Managing Partner
Kylla Corporate Transactions
