Balancing risk and reward: Trends to look out for in 2025

By Claire Harris, Head of Small, Medium and Enterprise Business, Vodafone UK

As we step into 2025, technology continues to reshape the SME landscape, offering unprecedented opportunities alongside complex challenges. Two of the most significant trends influencing this transformation are the rapid adoption of Multi-access Edge Computing (MEC) and the increasing sophistication of AI-driven phishing scams. For SMEs, these developments represent a double-edged sword: while MEC enhances innovation and efficiency, AI-driven phishing underscores the need for heightened cybersecurity measures.

Driving Innovation at the Edge

Multi-access Edge Computing (MEC) empowers SMEs by bringing data processing and storage closer to users and devices, reducing latency and enabling real-time decision-making. This capability enables businesses to optimise operations, enhance customer experiences, and unlock the potential of IoT and AI-driven solutions.

For example:

  • Retailers can create personalised in-store experiences such as virtual try-ons or immersive product demonstrations by analysing customer data on-site.
  • Manufacturers can optimise operations through real-time equipment monitoring, reducing downtime and costs.

Additionally, MEC supports the adoption of IoT devices and AI applications, which are increasingly critical for SMEs looking to modernise their operations. The ability to process and act on data instantly is transforming industries ranging from logistics to healthcare, offering smaller businesses a chance to compete with larger players. However, this dependence on edge computing also introduces new vulnerabilities, especially as smaller businesses manage the complexities of distributed IT infrastructures.

The Threat of AI-Driven Phishing Scams

On the flip side, the rise of AI-driven phishing attacks presents a stark reminder of the risks that come with technological progress. Cybercriminals are using generative AI to craft highly personalised and convincing phishing emails, making it increasingly difficult for employees to detect fraudulent communications. For SMEs, which often lack the resources for robust cybersecurity frameworks, the consequences of a successful phishing attack—ranging from financial loss to reputational damage—can be catastrophic.

A recent Vodafone Business report looking at the rise of AI-driven phishing scams on the business sector found that more than 90% of UK businesses did not feel adequately prepared to manage them. In addition, while 78% of business leaders were ‘confident’ that their employees could successfully identify a sophisticated AI-driven phishing attack, two-thirds had failed to do so.

In this new era of cyber threats, traditional defences such as spam filters and firewalls are no longer sufficient. SMEs must adopt proactive strategies, including employing AI-powered cybersecurity tools that detect anomalies in real time and providing consistent employee training programs that build awareness of phishing tactics. While these measures do require investment, they are essential for protecting sensitive data and maintaining customer trust.

The Intersection of MEC and AI-Driven Security

Interestingly, MEC and AI-driven cybersecurity can complement each other in mitigating threats. By processing data at the edge, businesses can reduce the exposure of sensitive information to external networks, limiting the potential attack surface. Coupled with AI-powered security solutions, SMEs can monitor their systems for suspicious activity and respond to threats in real time.

A Balancing Act for SMEs

For SMEs, navigating the dual impact of MEC and AI-driven phishing requires a delicate balance. Embracing MEC can unlock new opportunities for efficiency and customer engagement, but only if accompanied by a strong commitment to cybersecurity. Businesses must view these trends not as isolated developments but as interconnected challenges and opportunities that demand a holistic approach.

At Vodafone Business, we are dedicated to helping SMEs thrive in this dynamic landscape. Our MEC solutions empower businesses to innovate and scale, while our advanced cybersecurity offerings ensure they remain protected against emerging threats. By addressing these challenges head-on, SMEs can turn technological advancements into a source of resilience and growth in 2025 and beyond.

Claire Harris is the Head of Small, Medium, and Enterprise Business at Vodafone Business UK, where she advocates for empowering businesses through technology and innovation