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Business
01 January 2025

Predicted Business Trends Set To Shape 2025

Experts foresee transformative changes across sectors driven by technology and consumer expectations.

With the impending arrival of 2025, business leaders and analysts are forecasting significant shifts across global industries, from technological advancements to changing consumer behaviors. Insights gathered from various marketing leaders and economic experts reveal key trends anticipated to shape the business environment over the coming years.

One of the most significant trends is the push for personalization. Once seen as optional, personalized marketing is becoming central to strategies, according to Casey Gannon, VP of Marketing and Technology Partnerships at Bold Commerce. "Personalization has transformed from a nice-to-have to must-have. Consumers now expect customized interactions, and their attention spans are shrinking for anything less," she emphasizes. Gannon notes the role of artificial intelligence (AI) as the catalyst for delivering personalized experiences effectively, enabling brands to deliver more intuitive marketing aligned with consumer behavior and preferences.

Katherine Lee, Head of Marketing at GFT, adds depth to this narrative by highlighting the balance marketers must strike between automation and human touch. "Smart marketers will realize the importance of blending efficiency with thoughtful, human-generated content. While AI can assist with content creation, it often lacks the unique brand sentiment and tone of voice to resonate deeply with consumers." With tight budgets motivating companies to find ways to achieve more with less, the coming year promises to see increased automation of administrative tasks rather than reliance solely on AI for creative outputs.

Gretel Going, President of Channel V Media, points out the growing expectation among consumers for authentic interactions, even as technology assumes greater roles within marketing practices. "Consumers sense the difference between tech-generated content and authentic human stories. Marketers must find ways to maintain human ingenuity alongside technological efficiency," she warns. This insight signals marketers will deliberate on where to apply automation vs. where to maintain authentic engagement.

Looking at AI from broader angles, Jason Grunberg, CMO at Bluecore, mentions the strategic application of generative AI to address fundamental customer challenges. He notes, "Marketers are identifying problems their customers encounter and seeking to leverage AI for solutions rather than merely efficiency improvement. Successful cases, like Amazon’s AI shopping assistant, show how technology can substantially increase conversion rates and drive revenue by solving customer problems directly." This forward-looking perspective suggests 2025 will witness intensified focus on customer-centric technology applications.

Turning to economic conditions, the anticipated global economic overview suggests 2025 will be characterized as transitional. A combination of slowing economies and reduced inflation rates is expected to create favorable conditions, with U.S. inflation projected to drop to 2.5%. Central banks worldwide, including the U.S. Federal Reserve and the European Central Bank, are poised to reduce interest rates—creating more opportunities for investments, particularly within the technological sector.

AI and technology are also set to lead growth, with global IT investments projected to rise significantly. According to projections by EY, 30% of U.S. businesses are anticipated to invest over $10 million each on AI—a notable increase from prior years. Nevertheless, challenges remain. Gartner has warned about potential failures associated with AI projects as regulatory measures intensify, indicating businesses must tread carefully.

Healthcare is expected to face unique challenges, primarily due to the aging global population, which is projected to reach 12% by 2025. While demand for healthcare services is likely to rise, the overall spending is expected to decline to about 10% of GDP, reflecting shifts to more sustainable healthcare models.

The energy sector is also poised for significant activity, with projections indicating the rise of global consumption by 2%, largely sustained by fossil fuels. Notably, carbon emissions are expected to see substantial increases compared to 1990 levels, with coal remaining prominent, particularly across Asia.

Within the automotive industry, electric vehicles (EVs) are predicted to surge. Despite concerns surrounding price and range, projected growth of nearly 25% is noted, with countries like Norway aiming for all new cars to be emissions-free by 2025. Meanwhile, challenges arise with high tariffs on Chinese EVs and looming regulatory provisions impacting the expansion of electric vehicles.

Tourism is set to thrive once more, with global rates predicted to exceed 1.6 billion travelers. A surge of outbound tourists from China is projected, potentially exceeding previous levels before the pandemic, and benefiting from relaxed visa protocols across Southeast Asia.

The real estate sector will likely experience stabilization as interest rates decline, supporting office leasing amid the strengthened shift toward hybrid working models. While the conditions favor improvements, property values, especially for office buildings, are expected to face downward pressure due to the impacts of rising bad debt.

Finally, challenges within the telecommunications sector reveal a reliance on the growth of 5G technology, which is seen to expand remarkably. While user uptake is projected to surge, infrastructural challenges associated with coverage remain especially pronounced for developing countries.

These insights collectively paint 2025 as a pivotal year for businesses. Organizations will need to adapt to these intricately nuanced trends—leveraging technology, rethinking traditional marketing strategies, and embracing genuine human connections as they navigate through this rapidly changing economic and social climate.