With 2025 just around the corner, it feels like a good time to consider the scale of change facing businesses in the coming years. Technology is moving faster than ever, streamlining existing business processes and, in many cases, forging new ones. Into next year and beyond, organisations are going to need to prioritise change and transformation, or risk being left behind.
Global projections from Statista forecast spending on digital transformation projects worldwide to rise to $3.9 trillion by 2027, so growth in tech is to be expected. But what will this look like? And is it just the digital world we will see changes in?
With the constant influx of new, advanced tech, an increased focus on cybersecurity is inevitable, but there will be other changes to respond to as well. Internal structural changes could see a move away from traditional business approaches, and with a workforce that will quite quickly see a Gen Z majority, fostering an effective way of working with this new workforce is essential. So, let us unpack these predictions a little further.
AI readiness and tighter cybersecurity
If 2024 is anything to go by, we are likely to see an even higher influx of tech making its way onto the market and into our organisations in the coming year. This will manifest itself as AI tools, cloud computing and more, and according to recent research by Grayce, capitalising on tech such as AI is a top three transformation priority for 39% of FTSE350 businesses. And whilst introducing emerging tech offers businesses added capabilities and improvements in productivity, it also poses massive cyber risks to businesses. So, while yes, we will see more tech in 2025, we will also see an increase in cybersecurity protocols and software as a preventative measure.
For instance, for AI chat services such as Microsoft’s Copilot – which can help organisations with tasks such as market research and planning – to be effectively integrated, setting up cyber checks prior to rolling out the new tech company-wide is vital. Organisations can then feel confident in the support provided in data-sensitive areas such as financial planning, data analysis and much more. With 37% saying that AI has already significantly streamlined processes within their organisation, ensuring that AI tools are safely adopted translates to more efficient use over time.
However, with the requirement for cybersecurity ramping up in 2025 comes the need for not only appropriate management and implementation of cybersecurity software, but later risk mitigation in the event of a cyber-attack. Unfortunately, there is a skills gap in cyber security that according to UK Government figures 44% of businesses are facing. So, next year we will see organisations attempting to plug the skills shortage in an attempt to build an effective talent pipeline.
A move towards being product-led
It’s not just the world of tech that we will see changes in next year; I also expect that 2025 will be the year of shifting strategy models for many businesses. While much of the tech sector is already product-led, in the next year we can expect to see other, possibly more traditional, organisations following suit. But what does this mean? Well, for businesses that are used to a structured or siloed environment – with teams operating in silos, it could mean a difficult transition.
Marketing-led and sales-led approaches may be what traditional companies are used to – and these are unlikely to be going anywhere fast – but moving over to a product-led structure will require an increased focus on customer centricity, and UX journeys. Accessibility is a major sticking point for effective usability, and a product’s UX journey will have to take this into account when complying with the new approach. Prevalent in Saas companies, product-led strategies lead to a growth in product features that are in line with customer demand, and this can be done with agility and speed thanks to this approach. But the potential opportunities don’t stop at increased customer satisfaction. As a result of the product and sales teams working collaboratively together, profitable product portfolios can be produced in direct correlation with user demands. So, there is something to be said for profitability as organisations move towards this approach.
Gen Z’s potential for growth
2025 will also be the year for utilising an often-overlooked segment of the workforce: Gen-Z. Negative rhetoric has surrounded Gen Z and their ability to work well in the current job climate for a while now, but according to the World Economic Forum, under 26-year-olds will account for almost 30% of the global workforce by 2025. So, it’s more important than ever for businesses to adapt to new ways of working as a natural path of progression.
The digitally native workforce are AI and tech natives and bring with them a wealth of knowledge that businesses have to adapt to and can reap the rewards of. And with McKinsey’s research finding that 70% of transformation projects fail to meet their objectives, it is more vital than ever to utilise a digitally native, naturally curious workforce who have been primed with digital processes throughout their careers.
With our own research finding that 38% of organisations don’t have enough skilled AI professionals, that gap can be bridged by skilled Gen Z employees. A great way for businesses to lean into Gen Z talent is through providing the right opportunities, leveraging soft skills as well as innate technical skills to fast-track the adoption and implementation of AI across businesses. The businesses that truly lean into supporting Gen Z talent to flourish in the coming years will reap the rewards in the form of competitive advantage, fast-tracked technology and AI landscapes, and a future-ready workforce able to navigate with flexibility, resilience and the right skills.
The new year is shaping up to be one of exciting tech growth and new challenges. As businesses continue to adopt emerging technologies, the need for strong cybersecurity will only grow. Go-to-market strategies will also be under the microscope, as companies look towards high customer-centricity, and with Gen Z set to make up a larger portion of the workforce than ever, businesses will be grappling with how to make the best out of this generation and tap into their digital expertise. I’ll be watching intently to see how businesses react, and whether they take the necessary steps to transform effectively.