Recent years have been characterized by unique events, constant change and difficult economic conditions. While businesses have become accustomed to operating in an ever-evolving landscape, the start of a new year provides an opportunity to reflect and look forward.
Meanwhile, technology continues to dominate the headlines. Artificial Intelligence is changing the way we interact with the world while receiving greater attention and investment. According to Captera, More than three quarters of UK companies plan to increase their software budgets in 2025, including a focus on artificial intelligence.
As we enter the new year, companies will also look to allocate resources to enhance efficiency and support compliance – such as with new environmental, social and governance reporting requirements – all while adapting to a new era of technological advancement.
Nikki Tozer, Senior Vice President, EMEA, Oracle NetSuite, takes a look at the trends impacting the UK business landscape in 2025.
The barriers to AI adoption are disappearing
AI may still be considered by some to be an emerging technology, but it is no longer in its infancy. Data from the Federation of Small Businesses (FSB) In March 2024, it indicated that only 20% of UK small businesses were leveraging AI, yet 55% believed it could provide benefits – suggesting that businesses were either facing barriers to adopting AI or were unsure whether Where does the AI journey begin? But as we look to 2025, according to Capterra data, AI adoption is emerging as one of the solutions priorityalong with IT security, as the fear of missing out drives action and adoption.
What changes? The phrase “garbage in, garbage out” has become mainstream and companies now have a greater understanding of how to maximize the value of data and AI. Likewise, according to ForresterWhile 2024 was marked by AI experimentation, business leaders in 2025 will focus on focusing on the bottom line and return on investment. As the AI market matures, decision makers will look to connect and standardize data across business lines to ensure enhanced AI performance and relevance.
There is also a growing awareness of where AI can be deployed. Forrester Defines enterprise resource planning (ERP) solutions. As an ideal destination to leverage generative AI, while leading ERP vendors have rolled out new AI features built into existing workflows to help companies leverage the technology and accelerate its adoption.
Adopting new technology effectively is critical to productivity
As AI adoption increases, business leaders must ensure that employees across all departments are taken along on the journey to truly reap the rewards. Some functions and departments of the business are likely to benefit from AI more than others, while benefits may vary based on job role and personal interest and enthusiasm for new technologies.
It is worth noting, according to Captera, 57% of British companies Which implemented software solutions last year also introduced a learning management system (LMS) to support employee onboarding, indicating that business leaders are increasingly recognizing the need to engage employees in the journey to adopt new technologies. Organizations will embrace AI and software solutions that prioritize this user-first approach, valuing intuitive design and adaptability.
Going forward, we can also expect natural language processing (NLP) to enable more intuitive interactions with AI systems, allowing employees at all levels to leverage AI capabilities without specialized training. Transparency and adaptability are also crucial. AI systems are only useful if we understand their decisions, so organizations will increasingly adopt software solutions that deliver interpretable output to ensure trustworthiness and ease of use in the results.
The need to meet impending ESG requirements
Upcoming environmental, social and governance (ESG) regulations are set to reshape business practices as the European Union’s Corporate Sustainability Reporting Directive (CSRD) requires some companies to report on their environmental and social impact starting in 2025. Beyond regulatory mandates, Stakeholders – including investors, customers and employees – are increasingly seeking greater transparency and accountability in the companies they do business with.
Technology will play a pivotal role in meeting ESG requirements. Data from Deloitte In July 2024, it found that 74 percent of public companies plan to invest in reporting tools over the next year to simplify the collection, analysis, and reporting of environmental, social, and governance (ESG) data. For many companies, this responsibility will fall across multiple departments, including finance, legal, and operations.
Stronger regulations increase the need for greater tools and measures to support compliance. Systems that go beyond basic financial and management reporting to include specific, non-financial metrics such as carbon emissions capture and plastic use will be particularly relevant from 2025 onwards.
Key priority areas for companies in 2025 reflect the convergence between technological innovation, economic opportunity and regulatory responsibility. As business leaders look to enhance the efficiency of their organizations with AI, they will be especially mindful of how their employees can adapt to interact with technology. This drive for efficiency will enable decision makers to allocate resources strategically, addressing both current operational requirements and the increasingly demanding challenges of regulatory compliance. By embracing and responding to these priorities, companies will be able to position themselves to thrive in a competitive and evolving environment.
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