UK CEOs Pick AI, Housing and Space Mines as Some of 2025’s Biggest Themes

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(Bloomberg) — 2024 was a busy year: Donald Trump was elected again, interest rates fell and geopolitical tensions intensified. As the new year approaches, Bloomberg News spoke to dozens of British CEOs about what to look out for in 2025. With insights from bosses from a range of sectors including finance, construction and energy, here are the key themes for UK Plc.

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More artificial intelligence

“What’s the point of talking about 2025 if we don’t talk about artificial intelligence?” asked TS Anil, CEO of digital bank Monzo Bank Limited. Anil expects a “real acceleration” in AI developments next year.

He’s not the only one. Artificial intelligence will be the “dominant topic” for most industries, according to Kenton Jarvis, chief financial officer of EasyJet Plc, who will take over as CEO in January.

Jill Popelka, who runs cybersecurity firm Darktrace Plc, said AI will become “an indispensable, but increasingly invisible, force” in the workplace as it integrates seamlessly into everyday tools. She added that this transformation will require basic knowledge of artificial intelligence because “the real challenge is trust.”

Dirk Hahn, CEO of Hays Plc, said the recruitment firm “has not yet seen significant demand for AI-specific jobs” due to costs and aging infrastructure, but expects new roles to emerge in greater numbers.

Alex Kendall, who leads Wayve Technologies Ltd, said: Emerging in the field of automated driving, 2025 will be the year that robots truly reach the physical world. He expects prototypes to be launched as viable products by the end of next year, but said regulation must keep pace. “The UK has legalized driving cars. We now need this legislation to be implemented by regulators, so we are looking forward to that,” Kendall said.

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Work policies

Some British presidents hope that 2025 will be the year of long-awaited reforms from the Labor government.

Changing planning rules to boost housing supply and support first-time buyers to lift demand and a stable economy are at the top of housebuilder Barratt Redrow Plc’s wish list. Chief Executive David Thomas said: “The next six months are vital for the government to demonstrate that it can deliver the growth it has committed to and boost consumer confidence.”

SSE Plc CEO Alistair Phillips-Davies has praised the government for rapidly developing a clean energy plan by 2030, and sees 2025 as a crucial year to keep this target on track. However, he called for clarity around a proposal to localize UK electricity prices and wants the government to start talks with the EU about linking emissions trading schemes. Phillips-Davies said the uncertainty around these two topics is worrying investors.

Others say Labor can do more. Tim Cockroft, chief executive of investment bank Singer Capital Markets, said: “We would still like to see the government introduce more policies around pension fund investing in the markets, and provide more incentives for UK entrepreneurs.”

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Consumer confidence

Several British bosses have criticized Treasurer Rachel Reeves’ budget, saying it will raise the cost of doing business and impact consumer confidence. This remains a key concern for UK Plc.

“I’m concerned that as you see wage growth slowing and costs also rising in businesses, consumer confidence will decline a little bit,” said Helen Gordon, chief executive of residential landlord Grainger Plc.

While pressures on consumer spending are likely to continue to impact retail and hospitality, EasyJet’s Jarvis sees reason for optimism as holidays remain the “highest priority item within household budgets”.

Health of the London Stock Exchange

The UK stock market has had a tough 2024, falling down the league tables as listings dry up and large groups of companies are bought out.

In theory, this means it can’t get any worse, according to Singer Cockcroft. He said private equity-backed companies may look to list next year. Cockroft also expects dealmaking to pick up, with British companies continuing to be in the hunt, as well as continuing to be takeover targets.

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Technology breakthroughs

It’s not just about artificial intelligence. 2025 may also be the year of important scientific discoveries that reshape business.

Andy Palmer, former CEO of Aston Martin Lagonda Global Holdings Plc and current head of electric vehicle charging company Pod Point Group Holdings Plc, expects breakthroughs in space mining and nuclear fusion energy. The former could “disrupt terrestrial resource markets,” he said, while the latter could “turn global energy markets upside down.”

Closer to the ground, Palmer expects “heavy adoption” of electric vehicles next year, driven by government subsidies and falling battery costs. In 2024, consumers will avoid green vehicles, which tend to cost more than their combustion engine counterparts.

Trump’s return

Some British chief executives generally view another Donald Trump presidency favorably, but with some caution.

John Neal, who heads Lloyd’s of London insurance market, said British companies would be watching Trump’s protectionist stance. “In the short term, it will be a very cautious eye, but not a worried eye on the United States,” he added.

Grainger’s Gordon worries that companies may roll back their environmental policies when a climate skeptic takes office. “When you have Trump in the United States, you worry that people won’t pay that much attention,” she said.

Ballmer predicted that geopolitical tensions will also increase in 2025, forcing companies to diversify their supply chains. “Convergence and ‘buddy support’ will become common, especially for critical components such as semiconductors and electric vehicle batteries,” he said.

-With assistance from Kate Duffy, Eamonn Aqeel Farhat, Tom Rees, and Ben Saint.

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