Recent years have been characterised by unique events, constant change, and challenging economic conditions. While businesses have become accustomed to operating in an ever-evolving landscape, the start of a new year offers a chance to reflect and look forward.
Meanwhile, technology continues to dominate headlines. AI is changing how we interact with the world while commanding greater attention and investment. According to Capterra, over three-quarters of UK businesses plan to increase their software budgets in 2025, including a focus on AI.
As we enter the new year, businesses will also look to allocate resources to enhance efficiency and support compliance – such as with new environmental, social, and governance (ESG) reporting requirements – all while adapting to a new era of technological advancements.
Nicky Tozer, SVP EMEA, Oracle NetSuite looks at the trends influencing the UK business landscape in 2025.
The barriers to AI adoption are softening
AI might still be considered an emerging technology by some, but it’s no longer in its infancy. Data from the Federation of Small Business (FSB) in March 2024 suggested that only 20 percent of UK small businesses were leveraging AI, yet 55 percent believed it could provide benefits – indicating that businesses were either experiencing barriers to AI adoption or just not sure where to start their AI journey. But as we look ahead to 2025, according to Capterra data, AI adoption is emerging as a priority, along with IT security, as a fear of missing out drives action and adoption.
What is changing? The understanding of ‘garbage in, garbage out’ has become mainstream and businesses now have a greater understanding of how to maximise the value of data and AI. Similarly, according to Forrester, while 2024 was characterised by AI experimentation, in 2025, business leaders will pivot to focus on bottom-line gains and return on investment. As the AI market matures, decision makers will look to connect and standardise data across lines of business to ensure it enhances the performance and relevance of AI.
There is also a growing awareness of where to deploy AI. Forrester identifies Enterprise Resource Planning (ERP) solutions as an optimal destination for leveraging generative AI, while leading ERP vendors have rolled out new AI features embedded in existing workflows to help businesses utilise the technology and accelerate adoption.
Effectively adopting new technology is critical for productivity
With increased adoption of AI, business leaders must ensure that employees across all departments are brought along on the journey to truly reap the rewards. Certain business functions and departments are more likely to leverage AI than others, while benefits may vary based on job role, personal interest, and enthusiasm to new technologies.
Notably, according to Capterra, 57 percent of UK companies that implemented software solutions in the past year also introduced a learning management system (LMS) to support employee onboarding, suggesting that business leaders are increasingly aware of the need to bring employees along on the journey to adopt new technologies. Organisations will adopt AI and software solutions that prioritise this user-first approach, valuing intuitive design and adaptability.
Moving 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 specialised training. Transparency and adaptability are also crucial. AI systems are only useful if we understand their decisions, so organisations will increasingly adopt software solutions that offer explainable outputs to ensure trust and usability in the results.
The need to meet impending ESG requirements
Incoming ESG regulations are set to reshape business practices as the EU’s Corporate Sustainability Reporting Directive (CSRD) requires some companies to provide reporting on their environmental and social impact starting in 2025. And beyond regulatory mandates, stakeholders – including investors, customers, and employees – are increasingly seeking greater transparency and accountability in the businesses they engage with.
Technology will play a pivotal role in meeting ESG requirements. Data from Deloitte in July 2024 found that 74 percent of public companies plan to invest in reporting tools over the next year to streamline the collection, analysis, and reporting of ESG data. For many businesses, this responsibility will fall across multiple departments, including finance, legal, and operations.
More robust regulations increase the need for greater tools and measures to support compliance. Systems that go beyond basic financial and managerial reporting to include specific and non-financial metrics such as capturing carbon emissions and plastic usage, will be especially pertinent from 2025 onwards.
The major priority areas for businesses in 2025 reflect a convergence of technological innovation, economic opportunity, and regulatory responsibility. As business leaders look to enhance the efficiency of their organisations with AI, they will be especially conscious of how their employees are able to adapt to interact with technology. This drive for efficiency will enable decision makers to allocate resources strategically, addressing both current operational demands and the increasingly demanding challenges of regulatory compliance. By embracing and responding to these priorities, businesses will position themselves to thrive in a competitive and evolving landscape.
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The Trends Impacting UK Businesses in 2025
