Recent research by BT shows widespread anxiety among business leaders about the pace of technological change in the workplace. Most leaders said that AI and cyber security are the two biggest worries keeping them up at night, and recognise that digital and tech transformation is critical to the survival of their company. This led to a significant investment in new technology in 2024 which is set to increase 31% year-on-year.
Yet, 'tech paralysis' could stunt growth in the UK by an estimated £11.79 billion by 2030. 9 out of 10 surveyed said that this technology evolution is a major source of stress in their lives, which is stifling progress, as decision makers struggle to keep up with the ever changing advances in technology. From decision to implementation to benefits realisation, this can take 24 to 36+ months for large-scale transformations, requiring significant investment. Leaders are now concerned that before they can realise the benefits of these investments, the technology will have moved on.
Staying ahead with technological advancements in the workplace is key to remaining competitive, and innovation is necessary to be able to offer a solid customer value proposition.
Financial Services leaders are one of the most concerned (74%) about the impact to their sector over the next year. Directors and executives are seeking support to navigate technology challenges, with concerns about cybersecurity, tech transformation, and digital skills topping their list. Half of them stated that they wish they had a trusted partner to assist with tech transformation.
This article explores the top priorities for 2025 and serves as a practical guide to help leaders plan and prepare for the year ahead.
Traditional approaches to organisational change, often focused on sweeping overhauls, struggle to keep pace with today’s fast-evolving landscape. Incremental design offers a smarter alternative—empowering organisations to evolve iteratively and sustainably while staying ahead of technological shifts.
Incremental design is about making small, deliberate changes to systems, processes, or structures over time, instead of relying on large-scale transformations. Each step builds on the last, fostering a culture of continuous improvement and adaptability. This approach aligns well with the complexities of modern technology, where innovation happens rapidly, and the target state is constantly shifting.
For example, instead of replacing an outdated IT system in one massive project, an organisation could roll out updated modules, functionalities, or tools incrementally. This phased approach reduces disruption, spreads costs, and ensures the solution evolves in line with changing technologies and customer needs.
Emerging technologies like artificial intelligence, automation, and machine learning are reshaping industries. Incremental design provides a practical way to explore and integrate these innovations. By testing technologies in smaller, controlled environments, organisations can refine their implementation strategies, identify what works, and scale up successful solutions over time.
This approach significantly reduces risk. Smaller changes are easier to adjust, and organisations can learn from challenges early on, avoiding costly missteps. Incremental design ensures that solutions remain relevant by embedding adaptability and alignment with ongoing technological and market trends.
Incremental design is not just about internal efficiency—it’s also a powerful way to stay responsive to customer needs. Customers today expect seamless, personalised experiences, often driven by technology. Incremental design allows organisations to continuously refine their offerings based on customer feedback, delivering consistent value while staying competitive.
By breaking changes into smaller cycles, businesses can also shorten the 'time to value' for new features or improvements. Instead of waiting for a comprehensive redesign, enhancements are delivered faster and more frequently, keeping customers engaged and satisfied.
Large-scale changes can overwhelm teams and often meet with resistance. Incremental design addresses this by making change more manageable. Smaller, phased updates allow teams to see the immediate benefits of their work, building confidence and fostering a sense of ownership in the process.
This approach also promotes a culture of learning. Each incremental step provides insights that inform better decision-making, helping teams continuously improve and adapt as they go.
Flexibility is perhaps the greatest advantage of incremental design. Unlike traditional methods, it allows organisations to pivot quickly in response to new opportunities or challenges. This adaptability is crucial in today’s unpredictable environment, where resilience can be the difference between thriving and falling behind.
Incremental design is more than just an alternative to traditional change—it’s a strategic advantage in a world defined by rapid innovation and shifting demands. By making small, purposeful changes, organisations can minimise risk, remain customer-focused, and build a foundation for ongoing success. For those ready to embrace the future, incremental design is the pathway to sustainable, adaptable growth.
Artificial intelligence (AI) has transitioned from being a fringe concept to a tangible solution that is gaining widespread adoption in the workplace. Its ability to streamline workflows, automate routine tasks, and provide insights is revolutionising how businesses operate. It’s a transformative tool being adopted by organisations across the world.
Financial institutions are leveraging AI to enhance operational efficiency and customer service. In the UK, NatWest uses AI to detect fraudulent transactions, ensuring quicker response times and reduced losses. The bank also employs AI in its digital assistant, Cora, to handle millions of customer queries annually, freeing up human agents for more complex tasks.
In the US, JP Morgan Chase has implemented AI-powered systems like COiN (Contract Intelligence) to review legal documents. This tool processes thousands of contracts in seconds, saving significant time and reducing errors.
Physical AI is also gaining adoption. Take Ocado, the British online grocery retailer, which uses AI-powered robotic systems to automate warehouse operations. Their technology increases efficiency by optimising the packing process, reducing errors, and speeding up delivery times. This innovation has not only enhanced customer satisfaction but also set a benchmark for operational excellence in e-commerce.
Similarly, Walmart in the US has integrated AI across its operations, from stocking shelves using robots to improving inventory management. AI analyses real-time sales data to ensure stores are stocked with the right products, reducing waste and increasing sales. Both examples showcase how AI is helping businesses achieve efficiency and scalability while staying competitive in fast-moving markets.
However, integration must go beyond implementation. It requires change management strategies, workforce training, and an iterative approach to ensure that AI technologies align with the organisation's goals. Establishing KPIs to measure impact ensures that the deployment of AI translates to measurable improvements in efficiency and productivity.
Modern customers expect interactions that are tailored to their preferences, behaviours, and needs. AI enables businesses to deliver this level of personalisation through technologies like recommendation engines, natural language processing, and predictive analytics. For example, e-commerce platforms can suggest products based on purchase history, while service-oriented businesses can anticipate customer needs using real-time data.
The key to leveraging AI in this context is integrating it seamlessly into customer-facing processes. AI should enhance, not replace, human interactions by equipping teams with better tools to understand and serve their customers.
AI enables financial institutions to deliver tailored experiences. In the UK, HSBC’s proprietary NLP engine allows users to generate bespoke financial market analytics, gain access to HSBC’s real-time and historic cross-asset data sets, and browse the latest market insights.. This data-driven approach can enhance customer satisfaction and retention.
In the US, Bank of America leverages its AI-powered virtual assistant, Erica, to provide personalised insights, such as spending trends or budget suggestions, to millions of users. By integrating AI into customer-facing processes, financial institutions are creating deeper, more meaningful relationships with their clients.
While AI offers transformative potential, it also raises critical ethical concerns. Algorithmic bias, data privacy, and transparency are just a few of the issues organisations must address when deploying AI. The financial services sector faces unique challenges in ethical AI deployment. In the UK, Lloyds Banking Group has developed governance frameworks to address algorithmic bias in lending decisions. This ensures fair treatment of all applicants and builds trust in automated systems.
In the US, Citi has established internal review boards to oversee the ethical use of AI in underwriting and credit scoring. By proactively addressing potential biases, financial institutions can safeguard customer trust while meeting regulatory requirements.
A comprehensive AI ethics framework should include regular audits, policies for handling sensitive data, and measures to ensure that AI-driven decisions are explainable and equitable.
Embedding ethical practices in AI deployment not only mitigates risk but also builds trust with customers, employees, and stakeholders. Clear communication around how AI is used within the business can further enhance credibility.
AI capabilities are often tied to the software solutions a business adopts. With technology advancing rapidly, evaluating software for scalability, compatibility, and long-term value is essential. Many organisations are shifting towards subscription-based models, referred to as Software as a Service (SaaS), which are fast to implement and provide the ability to easily switch providers at the end of the (typically short) subscription term, providing the flexibility to take advantage of the latest and most relevant software solutions available.
When considering new software, ensure it aligns with your AI and digital strategy. Select solutions that integrate well with existing systems, provide robust data security, and that are investing in their own development roadmap.
XaaS is reshaping how organisations consume technology. From infrastructure to AI tools, service-based models allow businesses to remain agile, scale operations quickly, and reduce costs associated with in-house systems. The pay-as-you-go nature of XaaS enables organisations to focus on operational efficiency while accessing cutting-edge capabilities. Examples include:
One of AI’s greatest strengths is its ability to support decision-making. By processing large datasets and providing actionable insights, AI helps leaders make informed, timely decisions. Whether forecasting demand, assessing risks, or identifying growth opportunities, AI-powered tools ensure that decisions are grounded in data, not assumptions. Some notable examples:
Hyperautomation takes automation to the next level by combining AI, machine learning, and RPA (Robotic Process Automation). It enables organisations to automate complex workflows and processes end-to-end, driving significant gains in efficiency and accuracy.
Identifying tasks suitable for automation requires a thorough analysis of processes. Automation should focus on areas that provide the highest return on investment. Start with the low hanging fruit of repetitive, time-consuming activities before expanding to more complex workflows.
Automation excels at repetitive tasks, but human creativity and critical thinking remain irreplaceable (for now). Balancing automation with human expertise ensures that technology enhances, rather than replaces, the workforce.
Automation projects can face resistance or technical challenges. Effective change management, clear communication, and training programs are essential to overcoming these barriers and ensuring smooth implementation.
Automation carries risks, from cybersecurity threats to over-reliance on technology. Organisations must establish governance frameworks, monitor automated processes, and plan for contingencies to realise the full benefits while mitigating risks.
By prioritising learning and development alongside strategic automation, senior leaders can effectively lead their organisations through transformation agendas, securing a competitive edge in a world of constant change.
Geopolitical tensions and cyber warfare pose growing risks to businesses. In the UK, the National Cyber Security Centre (NCSC) issued warnings about increased threats during the Ukraine conflict, urging businesses to bolster their defences.
The UK government introduced stricter regulations to safeguard national security, including measures to combat money laundering, terrorism financing, and sanctions evasion. Businesses in sectors such as banking and real estate faced increased scrutiny to ensure compliance with sanctions against Russian entities.
Global conflict has altered risk profiles, prompting insurers to re-evaluate coverage. Businesses now face increased premiums for cyber insurance and geopolitical risk policies.. Lloyd’s of London highlighted that cyber insurance claims surged following ransomware attacks linked to geopolitical tensions. Businesses across the UK found themselves paying higher premiums or adjusting their coverage to include protection against politically motivated cyberattacks.
The reliance on Russian gas in Europe meant that the Ukraine conflict significantly affected energy prices. UK businesses faced soaring energy bills, impacting their operational budgets. Many small and medium-sized enterprises (SMEs) in the UK reported financial strain due to rising energy costs. Some manufacturing firms reduced production hours to manage overheads, while others implemented energy-saving technologies to mitigate costs.
Geopolitical tensions can lead to sanctions and trade restrictions, affecting UK businesses that export goods or services to conflict-affected regions.
The first step in establishing cyber security priorities is understanding the organisation’s unique risk landscape. A thorough risk assessment involves identifying critical assets, evaluating potential threats, and assessing the likelihood and impact of various attack scenarios.
Key actions include:
Generative AI tools, while valuable, introduce risks like data leaks and misuse. Employees may inadvertently input sensitive company or customer data into generative AI tools, such as ChatGPT or Bard, which are cloud-based and not always designed to handle proprietary information securely.
Generative AI models are trained on vast datasets and can sometimes produce outputs that are factually incorrect or misleading. Employees relying on such outputs without verification could make poor decisions or disseminate incorrect information.
In the UK, HSBC has implemented strict policies around the use of generative AI tools like ChatGPT, limiting access to ensure sensitive customer data isn’t inadvertently exposed.
Within our C5 Alliance business, we have designed and built custom ChatGPT tools for our clients, that remain ring fenced within the organisations own infrastructure, ensuring any information uploaded or shared by users stays on company servers.
Balancing cybersecurity costs with benefits is crucial. In the UK, small businesses supported by Cyber Essentials certifications have found affordable ways to improve their cybersecurity posture, gaining customer trust while protecting assets.
The rise of remote and hybrid work has shifted employee expectations. Offering flexible work arrangements is no longer a perk—it’s a necessity. Flexibility boosts productivity, reduces commuting stress, and enables organisations to tap into a broader talent pool.
To implement flexible work arrangements effectively, businesses need clear policies, supportive technology, and robust communication channels. This ensures that both remote and in-office teams remain connected, aligned, and productive.
Engaged employees are critical to organisational success. Retaining top talent requires a focus on engagement strategies that address employee well-being, career development, and recognition. AI-driven tools, such as sentiment analysis or pulse surveys, can provide insights into workforce morale, allowing organisations to act proactively.
Tailored engagement initiatives, such as professional growth opportunities and recognition programs, foster loyalty and create a positive work environment.
Succession planning ensures business continuity by preparing future leaders to step into critical roles. By leveraging AI and data analytics, organisations can identify high-potential employees, evaluate their readiness, and design personalised development plans.
But more importantly, businesses need to consider what their organisational design will look like in 1, 2, 5 years’ time, taking into account the likelihood of certain roles becoming obsolete (and other’s starting anew).
A strong succession framework involves mentoring, cross-functional exposure, and opportunities for emerging leaders to build the skills needed for key positions. Regularly updating the framework ensures alignment with organisational goals and evolving market conditions.
Equipping your employees with uniquely human skills is critical for sustaining organisational resilience and driving innovation in an era of rapid technological change. These skills go beyond the capabilities of AI and automation, enabling your workforce to navigate complex challenges, create meaningful connections, and contribute to the organisation's goals.
Competencies that complement technological advancements will ensure that your workforce not only adapts to new tools and processes but also enhances their value by bringing strategic thinking, emotional intelligence, and a collaborative spirit to the table.
By focusing on these strengths, you can create a team that thrives in the face of change:
By focusing on these uniquely human skills, your workforce can effectively collaborate with AI systems, driving innovation and maintaining a competitive advantage.
A learning organisation stays ahead of its competitors. Cultivating a culture of continuous learning involves creating an environment where employees are encouraged to acquire new skills, share knowledge, and innovate.
Embedding learning opportunities into day-to-day operations—through microlearning platforms, mentoring, or workshops—ensures employees are continuously growing and contributing to the organisation's success.
Tracking the effectiveness of learning programs is essential for maximising ROI. Key performance indicators, such as improved performance, increased productivity, and enhanced employee retention, provide insights into the impact of learning initiatives. Regular evaluations ensure that training remains relevant and effective.
The 4-day workweek is gaining traction as a way to boost productivity and employee well-being. In the UK, most firms that took part in the world’s largest trial have made the policy permanent.
Feedback from project managers and CEOs has been overwhelmingly positive. Over half reported that the four-day workweek – which maintained 100% productivity in just 80% of the time – had a beneficial impact on their organisation.
The benefits were clear: 82% of leaders highlighted improved staff wellbeing, 50% saw reduced employee turnover, and 32% found it boosted recruitment efforts. Nearly half also noted improvements in both working practices and overall productivity, showing that the four-day workweek is not only feasible but transformative for many businesses.
In 2022, the Scottish government supported trials of a 4-day workweek across multiple industries, including financial services firms and consulting businesses. Early findings indicated that participating organisations saw higher levels of employee satisfaction, reduced absenteeism, and no drop in productivity. These results are shaping discussions about the broader adoption of shorter workweeks in the financial services sector.
Unilever’s New Zealand branch trialled a 4-day workweek for all employees, keeping salaries at 100% while reducing hours. The program aimed to assess whether a shorter workweek could improve productivity and engagement. Results showed a boost in employee satisfaction and no loss in efficiency, prompting Unilever to explore expanding the model globally, including in its UK and US operations.
Think Productive, a UK-based productivity consultancy, adopted a 4-day workweek to align with its values of promoting smarter work habits. The company found that fewer hours encouraged employees to prioritise high-impact activities, reducing unnecessary meetings and distractions. The shift has resulted in greater team cohesion and an overall happier workforce.
Hybrid working has quickly shifted from being a perk to an expectation. Employees increasingly demand flexibility in where and how they work, and employers who fail to meet this expectation risk losing out on top talent. Offering hybrid working options is no longer just about keeping up with trends—it’s about staying competitive in the labour market and fostering a more engaged, productive workforce.
Platforms like Microsoft Teams, Zoom, and Slack play a critical role in ensuring seamless connectivity among dispersed teams. In the UK, hybrid models have become widely adopted, supported by these technologies, allowing employees to collaborate effectively regardless of their location. However, simply having the tools is not enough. Employers must establish clear ways of working to ensure hybrid teams succeed:
AI can streamline workflows and improve employee well-being. By automating laborious, time-consuming manual tasks, employees are freed up to focus on more rewarding parts of the process, improving job satisfaction and productivity.
Easily accessible AI features that can be used today include Zoom and Teams virtual meeting assistants that summarise conversations and highlight key actions, saving employees time while reducing cognitive load. This enables attendees to remain focussed on the conversation rather than taking notes.
Simple AI tools such as this not only boosts productivity but also contributes to a healthier work environment.
Senior leaders in 2025 face a complex and rapidly evolving landscape, but with the right strategies, these challenges can become opportunities for meaningful transformation. The pace of technological change, shifts in workforce dynamics, and growing cybersecurity threats demand a proactive and adaptable approach.
Adopting incremental design enables your organisation to adapt and evolve strategies in response to technological advancements. Leveraging AI drives innovation and helps you stay competitive. By evolving your ways of working and focusing on learning and development, you ensure your team has the skills and talent needed to keep your business resilient and future-ready. At the same time, strong cybersecurity measures and ethical AI practices are essential for building trust and achieving long-term sustainability.
By addressing these priorities, leaders can position their organisations to stay ahead in a rapidly changing landscape. In 2025, success will come to those who are adaptable, proactive, and prepared to embrace change. Taking action now will ensure your organisation is ready for the challenges and opportunities ahead.
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