In January 2025, the OAuth 2.0 Security Best Current Practice was solidified as RFC 9700, highlighting the evolution of APIs from developer tools to essential infrastructure in regulated industries. A significant gap persists between API adoption and AI readiness, as only 25% of organizations operate fully API-first despite widespread API usage. The API landscape is being reshaped by six key trends: architectural evolution beyond REST, convergence towards machine-readable standards, the shift of security requirements to mandates, increasing regulatory demands, commercialization of network APIs, and the growing integration of AI. Regulations now require healthcare and financial institutions to implement APIs for interoperability and data access, fundamentally altering business approaches to data exchange. Security practices have also evolved, with RFC 9700 mandating secure OAuth 2.0 flows, and the introduction of FAPI 2.0 setting new standards for financial-grade API security. AI agents, which are underused in API design, present unique challenges that necessitate redesigning APIs for machine interaction and introducing new security models. Organizations must adapt rapidly to these shifts or risk obsolescence, as APIs become central to digital infrastructure, requiring comprehensive strategies that integrate multi-protocol support, compliance-first architecture, and AI readiness.