The year ahead – looking to 2025

2024 has been a remarkable year.

Over half of the world’s population turned to the ballot boxes and in almost every election rejected the political status quo. That will shape the domestic and world stage throughout 2025 and beyond as newly elected political leaders deliver the change demanded. 

It was a year where there was much to cheer and celebrate, with significant advances in technology, particularly AI, medicines, electric vehicles and green and environmental technology.  Yet it was a year where our humanity was on stark display, with continuing conflict around the world.  

2024 was a year where our resilience and ingenuity looked to find answers to the biggest questions and challenges we face, and that is a trend that will accelerate over the year ahead and will immeasurably improve our lives.  

Looking back on the past 12 months, there was hope that the July election would provide stability and growth that businesses, and individuals, need. 

The signs were there: the cost-of-living crisis had eased, inflation was falling and business confidence measured quarterly by the Chartered Institute of Accountants in England and Wales (ICAEW) was improving. 

Yet despite the Labour government’s clear mandate, its October Budget sparked strong reactions from the nation’s farmers and the decision to increase employer’s National Insurance Contributions has drawn widespread criticism. 

It is time for the Government to move the discussion from taxation to growth, where the contributions of businesses, individuals and the not-for-profits are recognised, encouraged and celebrated. 

It is impossible to reflect on the past year without acknowledging the unprecedented re-election of President-elect Donald Trump. The overwhelming mandate he now has will be felt the world over. How his policies will affect businesses in the UK and the world stage is yet to be felt, but businesses must prepare. They can do this through sustaining their focus on their purpose, strategy, values, systems and processes. 

So as the world pivots again, what can we expect in the year ahead? 

AI comes of age

It is estimated that by 2027 the global AI industry will have received a staggering US$1 trillion of investment, yet its adoption by businesses in a meaningful or transformational way remains low. Yes, many businesses are experimenting with AI, and in some industry sectors its use is increasingly commonplace, but we have just had a taste of what AI can deliver. 

The use of AI will accelerate exponentially in the year ahead as the promise of what AI can deliver becomes ever more apparent. It will bring efficiencies to businesses that were unimaginable just a few years ago.  

Businesses that choose to ignore AI or delay the decision to adopt AI into business processes will be left behind. Businesses that are ‘processors’ of information will lose out to those that are ‘facilitators’. They will find it hard to catch up. 

In 2025 it will no longer be whether you should be using AI, but why are you not using it? Businesses, their people, customers and suppliers will want a sustainable programme of defined business cases for new digital tools as part of a continuous cycle of improvement.   

Customer experience wins out

It is likely that ‘big business’ with deep pockets and the resources and time to innovate will get bigger. Corporate giants will, however, come under ever-tighter scrutiny from governments and regulators around the world.  

Scale-up businesses can find efficiencies in their use of technology and AI, but also need to look at what sets them apart from bigger businesses. The underdog needs to think and act differently from their largest competitors to stand out.  

Yes, scale-up businesses have agility on their side, but that may not be enough. Ambitious and fast-growth businesses will need to define their purpose, their unique selling points and nurture their culture. 

For many businesses, that will evolve around the customer experience. 

It may at first appear counter-intuitive to focus on the customer experience when AI will likely dominate, but that is entirely the point.  

There is a very real risk that in the race to adopt AI, using AI to enhance the customer experience, businesses will lose their personal connection to the customer. We do not want to be stuck talking to an AI bot when most of us know a person can more quickly and effectively answer the questions we have or address the problems we face. 

Businesses should use AI to give their human talent the space and resource to focus on the customer experience. The human touch in an increasingly automated world will be welcomed and treasured. 

Planet and people over profits

At the time of writing, COP29 in Baku, Azerbaijan, wrapped up with an agreed climate finance deal. It was hard fought. But with 2024 the hottest on record and concluding with devastating floods in southern Europe and famine in sub-Saharan Africa, many left the summit asking whether collectively we have done enough. 

Strong ESG and sustainability credentials are essential. People and profits cannot be at the expense of the planet. 

This is of course not just a priority for the year ahead, but businesses in 2025 will find it challenging to boast customer excellence when corporate activity has a detrimental impact on the communities of those customers. 

‘A Budget to fix the foundations of our economy’?

Many hoped that the July election would provide much needed stability and growth. Despite Labour badging the Autumn Budget as a Budget to ‘fix the foundations of our economy’ and emphasising stability and the need to invest, invest, invest, businesses were asked to carry much of the £40bn increase in taxes announced. This only reinforces the focus organisations need to give to a programme of operational excellence which will drive efficiency and productivity. There were significant changes to capital gains tax and inheritance tax which will impact many of our clients. 

Although the changes are significant, our advice is not to panic or make changes to your plans without thinking through all the consequences. We have created a content hub to provide guidance to clients and are here to help review and advise on your individual circumstances.  

The Government’s October 2025 Budget will be eagerly awaited. 

Resilience and ingenuity win out

As we approach the new year and the world pivots once again, there is, I believe, much to be hopeful for. Yet it will require real mindset changes for many organisations through business and individual purpose, defining culture, management and technical systems as well as resilience and ingenuity. That is something I know the organisations we represent have. It has been on display every day of the week and every week of the year for the past four years… but it never hurts to check-in that all aspects are still appropriate and relevant.   

The message for the year ahead therefore remains unchanged – plan ahead, find efficiencies, look for growth opportunities and make the customer feel special. 

Season’s greetings and a prosperous New Year to you all.