By Nicky Tozer, SVP EMEA, Oracle NetSuite
The past few years have been defined by unparalleled events, rapid change, and economic challenges, leaving businesses to navigate an increasingly complex and dynamic landscape. As we enter 2025, organisations have the opportunity to reflect on lessons learned from the previous year and focus on the priorities that will shape their success in the months ahead.
Amid this evolving environment, technology remains a powerful driver of change. Artificial intelligence (AI) continues to redefine how businesses operate, with growing investments and integration across industries. In the UK, according to Capterra, over three-quarters of companies are poised to increase software budgets, emphasising AI as a key enabler of efficiency and innovation.
At the same time, compliance with environmental, social, and governance (ESG) regulations is becoming a critical focus, requiring organisations to balance operational demands with new standards of transparency and accountability. Businesses are looking at how to allocate resources to harness cutting-edge technology while meeting regulatory requirements and fostering sustainable growth.
Overcoming barriers to adopt AI and drive ROI
While AI might still be viewed as an emerging technology by some, its capabilities have matured well beyond their initial stages. 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 enter 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’s driving the shift? The concept of “garbage in, garbage out” has become widely recognised, leading businesses to better understand how to optimise their data and fully leverage AI’s potential. According to Forrester, while 2024 was a year of experimentation with AI, 2025 is set to see business leaders shift their focus toward tangible bottom-line improvements and measurable ROI. As the AI market evolves, organisations are prioritising the integration and standardisation of data across departments to enhance the accuracy and effectiveness of AI applications.
There is also growing clarity about the best use cases for AI. Forrester identifies Enterprise Resource Planning (ERP) solutions as a prime area for leveraging generative AI, with leading ERP providers embedding new AI functionalities directly into existing workflows to streamline adoption.
Employee engagement critical to technology adoption
As AI becomes more integrated into business operations, leaders must prioritise engaging employees across all departments to fully unlock its benefits. Certain business functions and departments are more likely to leverage AI than others, while benefits gained may vary based on job role, personal interest, and enthusiasm for 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.
Looking ahead, advancements in Natural Language Processing (NLP) are likely to further simplify interactions with AI systems, enabling employees at all levels to utilise AI without requiring specialised training. Equally important are transparency and adaptability – AI systems must produce explainable outputs to build trust and ensure their results are actionable and comprehensible. As a result, organisations will continue to gravitate toward software solutions designed with these principles in mind.
ESG in focus
New ESG regulations are poised to significantly reshape business practices, with the EU’s Corporate Sustainability Reporting Directive (CSRD) requiring some companies to disclose their environmental and social impacts from the start of 2025. Beyond regulatory demands, stakeholders—including investors, customers, and employees—are placing increasing emphasis on transparency and accountability from businesses.
Technology will play a pivotal role in meeting ESG requirements. Data from Deloitte in July 2024 found that 74 percent of public companies planned to invest in sustainability 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, are now especially pertinent.
A balanced strategy in 2025
The major priority areas for businesses this year 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 position themselves to thrive in a competitive and evolving landscape.
