2024 proved to be a challenging year for the tech sector but which trends will shape the industry as we enter 2025? 2024 was a year characterised by high inflation, geopolitical instability, and widespread uncertainty which meant that tech companies proceeded cautiously. However, in recent months, there has been a noticeable shift, with tech firms resuming plans for expansion and new investments.
Here are three key tech trends that we expect to shape 2025.
Cybersecurity Threats on the Rise
Cyberattacks are increasingly targeting organisations of all sizes across every sector. In Q3 2024 alone, an average of 1,876 cyberattacks were reported, and this number is expected to rise further in 2025. Consequently, the demand for cybersecurity services is likely to grow across both private and public sectors.
Interestingly, the mental health and wellbeing of cybersecurity professionals is emerging as a critical issue. Burnout among these specialists is becoming more widespread, with research from MultiTeam Solutions revealing that half of cybersecurity professionals anticipate experiencing burnout within the next year. This poses a significant challenge to the resilience of organisational security. As awareness grows, mental health and workplace wellbeing will likely become central themes in industry discussions.
Meanwhile, artificial intelligence (AI) is amplifying cyber threats. Sophisticated AI-powered deepfakes and adaptive malware are making attacks more targeted and harder to counter. These tools actively identify and exploit weaknesses, underscoring the urgent need for enhanced cybersecurity measures.
AI Fatigue
AI has dominated conversations over the past year, with its transformative potential sparking both excitement and concern. Major tech firms have announced substantial investments in AI, particularly in autonomous systems, and the proliferation of free, accessible large language models has allowed consumers and businesses to experiment with the technology.
These developments have sparked important debates about AI’s impact on the workforce, the need for regulation, and its ability to improve efficiency. However, this surge of interest has also led to “AI fatigue.” High-profile examples of AI errors—such as generating biased or inaccurate outputs—have frustrated users. One recent case involved widespread criticism of Spotify Wrapped reels powered by AI, which many found dull and uninspiring.
AI still has significant room for improvement, from innovation to implementation and regulation. While 2025 will see further investments and policy announcements in this space, the early months of the year may be defined by a growing sense of AI fatigue as expectations adjust to the technology’s current limitations.
Adapting to Changing Administrations
Significant political transitions are set to influence the tech landscape in 2025. In the UK, a new Labour government is shaping its agenda after over a decade of Conservative leadership. Across the Atlantic, President-elect Donald Trump is forming his administration and outlining policy reforms focused on deregulation.
In the US, this deregulation push is expected to prioritise high-growth sectors such as Bitcoin, cryptocurrencies, and AI. Bitcoin has already surged past the $100,000 mark, reflecting optimism in the market. While the UK has been less active in these areas, policymakers are likely paying close attention, recognising the potential of these sectors to drive economic growth and productivity.
Two trends are likely to emerge. First, an increase in startups and investment within these high-growth sectors is expected, fostering innovation and adoption. Second, a broader discussion may arise around which countries provide the best conditions for tech companies to thrive. Currently, the US appears to be attracting more talent, but the UK could also see a rise in homegrown startups with the right incentives in place.
The year 2025 is shaping up to be a pivotal one for the tech sector as it seeks to rebound from a turbulent period. With cybersecurity threats evolving, AI innovation pushing boundaries despite growing scepticism, and political shifts reshaping regulatory environments, the industry is poised for significant change. Navigating these trends will require agility, investment, and a focus on sustainability, but the opportunities ahead are immense. For tech firms and professionals alike, 2025 could mark the start of a new era of growth and innovation.
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