Trends on Chief Strategy Officers’ Radar for 2025

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10. Don’t let yourself be lulled into inaction.”

- Bill Gates

As 2025 unfolds, unpredictability remains high and transformational shifts are occurring across industries. Companies are navigating challenges such as geopolitical instability and rapid technological advancement. These are compounded by climate emergencies as well as changes in regulation and economic policy from the new U.S. administration. Expecting further disruptions, these shifts will demand agility and foresight from chief strategy officers (CSOs).

There are four categories that companies fall into regarding their future strategy:

1. Ignore: Just pretend tomorrow will look a lot like today so you can keep doing what you are doing.
2. Avoid: You know the future holds change but since you cannot know exactly when and what it will be, you are not going to worry about it now.
3. Prepare: You think about what the future may hold and then prepare various plans by tracking data and developing responses to multiple scenarios.
4. Shape: You work with your team to apply influence to shape the future through developing new technologies, processes or regulations.

Many businesses fall into the first or second category by either hoping the change does not come or waiting until the last moment to deal with impending doom. Looking at some examples of companies’ responses to industry upheaval can help you determine the right route for your business.

Strategy 1: Ignore Kodak knew the future of film was digital, but they chose to ignore it. Futurist Faith Popcorn, who has been on our podcast, told the story of her work with the company. They asked her about the future of film, and she concluded that digital photography would win supreme. Kodak replied, “No, we asked what the future of film would be, not photography.”

Strategy 2: Avoid Nokia embraced strategy two and saw that the future of mobile phones would be smart devices and applications. They tried to avoid that eventuality, holding on to their traditional phone platform for far too long.

Strategy 3: Prepare In contrast, Procter & Gamble invested heavily in consumer insights to prepare for shifts in trends like the demand for sustainability and eco-friendly products.

Strategy 4: Shape Tesla embraced the fourth strategy and did not just respond to EV demand, but shaped the market itself, driving advancements in EV technology, creating charging infrastructure, and influencing regulation.

Top 12 Trends for 2025

Every week I spend hours with chief strategy and innovation officers from a wide range of companies, everything from multi-billion-dollar tech firms to art museums and federal banks. These individuals are tasked with preparing their organizations for the future. Below are the top 12 trends these thought leaders are consciously tackling in 2025. If any of these are not on your radar, then you need to think carefully about why not.

1. Artificial Intelligence

Artificial intelligence (AI) adoption is surging, accelerating impact with transformative potential across customer engagement, operations, and product innovation. ChatGPT gained 1 million users in the first five days of its 2022 launch. In comparison, Instagram took 2.5 months to achieve the same results.

As the AI ecosystem matures, layers of applications, models, and infrastructure will emerge as essential components to any business model. Organizations that can develop AI solutions that combine pattern recognition and proprietary data will stand out.

“The winners will be those who capitalize on service-as-a-software, layering AI to scale with less labor.”

- Scott Galloway

2. IoT and Smart Spaces

The Internet of Things (IoT) is creating interconnected ecosystems that enhance operational efficiency and customer experiences. From smart factories to connected homes, these innovations are transforming industries. There are now more than twice as many IoT devices as there are people in the world.

As more connected intelligence gets embedded in our tractors, cars, and even appliances, these devices are changing the way we live and the future of customer interactions.

EveryCook, a smart multicooker, learns from user habits, revolutionizing home cooking with personalization and waste reduction. This helps consumers save time and money, while supporting sustainability.

3. Data Proliferation and Advances in APIs

The more we integrate IoT devices into our lives, the more information they collect on our habits and preferences. Customer data proliferation and improvements in APIs (how systems communicate with each other) are allowing us to share that information more easily. In 2019, the world generated about 40 zettabytes of data. In 2024, it generated over 140 zettabytes. If we tried to stream that much data, even with today's lightning-fast internet speeds, it would take 1.8 billion years.

NHIRD is a research database containing healthcare claims data from Taiwan’s National Health Insurance system, which covers more than 99% of Taiwan’s population. Nearly all outpatient and inpatient settings include two decades’ worth of information. Given proper cause and authorization, researchers can obtain health information statistics by patient count or disease without identifying individuals or invading their privacy.

4. Blockchain/Distributed Ledger

This massive increase in data collection and management makes using blockchain a reliable solution for a variety of industries. Distributed ledger — which a blockchain sits below, acting as a way to order and validate the transactions in the ledger — is moving beyond cryptocurrency, offering solutions for transparency, efficiency, and security in supply chains, contracts, and financial transactions. Its decentralized nature has the potential to disrupt traditional industries.

The broader application of distributed ledger technology (DLT) is steadily making its way into a variety of sectors from legal and accounting to logistics and art. Nearly 90% of businesses surveyed reported deploying blockchain technology in some capacity.

Specifically, distributed ledger methodologies also offer the potential for smart contracts: easily verifiable contracts between two or more parties that automatically execute terms based on agreed-upon criteria and trusted third-party metrics.

Crop insurance offers a simple example of how this technology increases efficiency and trust. These agreements automatically pay out when specific weather conditions meet predetermined levels, such as temperature reported by government climate authorities. Once the parties complete the contract, encoded for all to see, everything proceeds without intervention — no claims process and no negotiation.

5. Digitization of Value

The rate at which consumer data is being digitized and utilized continues to soar. The electronic component of physical products is growing quickly to meet the desires of the end user. We no longer purchase items, such as cars, purely for their physical attributes. The connectivity and “smart” technologies now represent at least 50% of the total value of a new vehicle.

Tesla builds physical cars but develops software on their unique hardware much in the way Apple updates the iPhone. By improving cars’ cyber functionality, the company is able to update operating systems and fix problems with simple software improvements. There is no need for expensive oil changes or vehicle tune ups. This is in sharp contrast to the traditional auto industry model where the product is the same for as long as you drive it, and the value of the asset diminishes almost immediately upon its purchase.

6. Robotics and Automation

The allure of robotics and the ease of automation make the future look sleek. With robotics booming, it has become the center of a new competitive field engaging millions of young engineers. Recent advances, including direct human-to-machine communication, are forcing companies to rethink everything from manufacturing to medicine.

For example, in South Korea there is a robot density of one to every 10 humans. The acceptance and utilization of robotics and automation offers more efficiency and streamlining.

Companies like SAP and Microsoft offer robotic process automation (RPAs) tools that help improve efficiency and lower costs. Combining workflow and decision management, along with process visibility using AI, robotic support can be utilized in a variety of sectors. Embracing these tools not only streamlines processes, but it can also improve the end user's experience by offering quick response time and amplifying their productivity.

7. 3D Printing (Additive Manufacturing)

3D printing, or additive manufacturing, is no longer confined to prototyping. It is revolutionizing manufacturing by enabling on-demand production, reducing waste, and cutting lead times. Companies are leveraging this technology to localize production and create customized products at scale. The ability to manufacture closer to the point of customer need, in time and space, is reshaping traditional supply chains.

China has made important printing advancements, including high-speed printing systems, due in part to government support and national development goals. In the first half of 2024, China exported 680,000 3D printers to the U.S., representing 37.2% of China’s total exports.

“Additive’s growing capabilities, together with expansion in both the materials available and the supplier ecosystem, have made it possible to affordably produce a much broader range of things — from the soles of running shoes to turbine blades — often in much higher volumes.”

- Richard D’Aveni

8. Climate Change and Sustainability

With fires ravaging California, devasting hurricanes reshaping the East Coast, and the severe droughts in Brazil and South Africa, sustainability is no longer optional. CSOs are incorporating escalating costs of climate conditions into their business’ financial projections. Companies are internalizing externalities like climate risk to build climate-resilient supply chains. Sustainability initiatives now drive profitability, as consumers and investors demand action. Ignoring climate change impacts puts a company's bottom lines at risk.

Research shows that 3.6?billion people already live in areas highly susceptible to climate change. Between 2030 and 2050, global warming is expected to cause approximately 250,000 additional deaths per year. As insurance and rebuilding costs soar, displacement and health concerns are additional consequences that drive the increased need for planning.

Even the U.S. military has committed to reduced fuel consumption for operational efficiency, cost saving and mission security. Accepting and tackling the challenges posed by our changing environments provides strategy officers an opportunity to mitigate risks.

“Being selfish about sustainability — aligning it with profitability — is driving real change.”

- Maisie Ganzler, Outthinker Roundtable

9. Distributed Energy

On the heels of sustainability and adapting to climate change, decentralized energy systems are gaining traction. Driven by advances in renewable energy and battery storage, these systems enhance resilience and reduce reliance on traditional grids.

Policy and innovation are making renewable, decentralized energy resources (DERs) like rooftop solar and small-scale wind turbines more competitive, driving their adoption. By 2030, renewable electricity generation is expected to increase by 90%. That will be sufficient to meet the combined power demand of China and the U.S.

Bangladesh provides a great example of the journey toward energy stability through distributed solar systems. Rahimafrooz, a company initially focused on car batteries, began offering solar-powered deep-cycle batteries that could provide rural households with several hours of electricity each night. These systems, along with the government's initiatives to improve the traditional energy grid, have helped reduce blackout frequency in the country. Rahimafrooz is also introducing solar-powered charging stations for electric "tuk-tuks," promoting sustainable transportation in rural areas.

10. Next-Generation Expectations

Customer and employee expectations are impacting demand. Speed and customization, both driven by and benefiting companies that deliver on these, like Amazon and Etsy, provide consumers with the power to demand quick personalization.

From one-of-a-kind products to on-demand prescriptions, the next generation consumer expects instant service. For example, an MIT team applied the same technology that powers Coca-Cola’s Freestyle vending machine, which can economically produce a single serving of a personalized soda flavor, to medication delivery.

While agility and ease are key to attracting new consumers, a focus on sustainability also drives purchasing habits. According to a survey by McKinsey, 67% of consumers consider the use of sustainable materials an important factor when making purchasing decisions. Conscious buying is a trend consumers have embraced due to increased awareness of climate change issues, ethically sourced materials and fair labor conditions. Companies that can leverage their eco-friendly practices will see increased customer loyalty.

Patagonia has an incredible brand following, and much of its customer allegiance has to do with the company’s mission to protect the environment. By donating 1% of their earnings to sustainability and environmental causes, Patagonia has given $140 million to environmental groups since 1985. That dedication ties the company’s values and culture to a brand consumer are proud to support.

11. New Organizational Models and Future of Work

Workplace expectations are shifting as Millennials and Gen Z demand greater work-life balance, autonomy, and inclusivity. Employees, empowered by technologies that reduce costs and time, are increasingly able to make their own decisions. Organizational models, like Haier’s RenDanHeYi model, and decentralized “permissionless” structures empower employees while fostering innovation.

Companies that treat people as intrapreneurs rather than employees are outperforming their peers. These businesses are reaping financial rewards, as well as keeping and attracting top talent.

“Millennials and Gen Z place higher value on purpose and personalization, reshaping workplace expectations.”

- Jean Twenge, Outthinker Roundtable

12. Regulatory and Global Trade Uncertainty

According to Global Trade Alert, trade restrictions globally surged to 3,000 in 2023 from 500 in 2013. Last year, companies witnessed geopolitical challenges and complex regulatory environments that impacted global mergers and acquisitions. As inflation recedes and interest rates stabilize, M&A activity is expected to continue increasing in 2025. CSOs will need to navigate expanding antitrust laws, foreign investment restrictions, and export regulations.

Following the UK's departure from the European Union and the signing of the Trade and Cooperation Agreement (TCA) four years ago, the chemical industry has faced increased logistics and regulatory compliance costs. Small and medium-sized enterprises (SMEs), such as Holiferm, have found it challenging to navigate the dual regulatory regimes of the UK and the EU. This situation has led to increased operational costs and complexities in managing customer expectations.

Adding to the stress around changing global regulations, armed conflicts create another challenge that CSOs must address. In 2023, there were 59 armed conflicts involving organized crime groups committing violence. Most of these groups lack political goals and are generally motivated by economic gains.

State-based armed conflicts have remained at historically high levels since 2015, and wars like the one between Russia and Ukraine only increase the uncertainty issues companies will face in global trade.

“The world is shifting from a global trade order to a devolved one in which bilateral agreements, multiple spheres of influence, and self-interested government policies are likely to loom large.””

- Ram Charan and Rita McGrath (The Radical Reshaping of Global Trade)

Pushing Ahead in 2025

These trends reflect ongoing shifts that have been building for years and are now at the forefront. Our Outthinker community of executives and thought leaders is on the front lines, bringing together insights from across industries.

To build a lasting brand or company, CSOs must push past the instinctive nature to fear change. Ignoring and avoiding is a recipe for being left behind. Businesses and individuals that can prepare for inevitabilities will survive the instability, and the ones that can shape their futures can create something truly lasting.

Explore how Outthinker Networks can help you stay ahead of these trends and position your organization for success in 2025 and beyond. Learn more and apply.