Unveiling 2025: KPMG Leaders Decode Top 35 Trends Shaping the Future of Business
As we prepare to step into 2025, we are anticipating accelerated innovation and disruptive change in the US and around the globe.
In this episode, KPMG leaders share their insights and predictions related to evolving economic trends and regulatory complexities as well as a more active deal market. And, of course, what's next in artificial intelligence (AI) and what it means for businesses, employees, energy demand, and more.
These insights will serve as a roadmap for businesses to navigate 2025.
We invite you to join us for an in-depth exploration of KPMG's top 35 trends and predictions that are poised to shape the business landscape in 2025.
AI Evolution 2025: The Dawn of Autonomous Co-workers and Sustainable Innovation
Carl Carande : The Rise of GenAI: From Tool to Co-Worker
In 2025, GenAI will evolve from tool to co-worker—one that requires responsible supervision. Businesses must invest in the technology to achieve this; equally important is investing in their people. To perceive AI as a co-worker capable of autonomous planning, coordination, and execution, employees must possess the skills to provide crucial human input and oversight, with trust and reliability top of mind. People remain essential for analysis and decision-making and must be keenly aware of AI's limits, while leveraging its strengths. Sustaining value hinges on maintaining trust among customers and employees, while fostering a responsible relationship between technology and people.
"The next tectonic shift in how we work must look at our flow or work to enhance experience." Sandy Torchia
Sandy Torchia : Enhancing Workflows in the Age of AI: Prioritizing Connection and Creativity in 2025
2025 will be the year that we better understand the day-to-day impact of AI on our workforce and re-tool workflows to maximize its benefits.?The adoption of GenAI has been faster than that of the personal computer and the internet, but data reveals that it varies by company size, employee level and frequency of use. As AI agents broaden and accelerate use, it will be critical that—similar to the pandemic and hybrid work—this next tectonic shift in how we work is met with deep scrutiny on our flow of work to help enhance everyone’s experience and strengthen organizational culture. Companies that encourage their employees to use newfound time to prioritize connection, development and enable greater focus on creative and strategic work will see more and better use of AI, while retaining and engaging their talent.
John M. Doel : AI and Upskilling: The Winning Combo for American Workers
American workers are increasingly optimistic about the use of AI in the workplace and are prioritizing career development, according to our annual American Worker Survey. The survey found that 50% of respondents believe automation, including AI, has enhanced their professional abilities, while 48% anticipate new career opportunities due to automation. The report highlights the importance of integrating AI into daily tasks, allowing employees to focus on uniquely human skills like critical thinking and decision making. Organizations need to engage workers in upskilling and reskilling opportunities through personalized training. The survey also revealed a growing interest in personalized upskilling across the enterprise, with 82% of workers agreeing that upskilling is crucial to their career.
"Businesses will need to consider how they manage machine UN-learning in 2025." Matteo Colombo
Matteo Colombo : Data in the Age of AI: Exploring the Challenges of Trust and Privacy
As we explore the boundary between data and AI and the notion of trust in data, there is one challenge that really stands out to me. What happens to your data once you use it to optimize a large language model or enter it in a generative AI tool? In machine learning, there are limitations to removing data once it’s been used. This issue has significant implications for data contracts and data rights and can limit how third-party data can be used. Businesses will need to consider how they manage machine UN-learning in 2025. Watch more here.
Atif Zaim : 2025 is going to be the year where the rubber meets the road for AI
Angie (Evans) Gildea: AI's Energy Dilemma: Navigating the Growing Demand in 2025
Did you know an AI search requires 10x more energy than a standard internet search? Generative AI is fueling a significant increase in global energy demand, and we’re seeing even more data centers pop up to meet its energy needs with one being built every three days. With 30% of the world’s data centers being in the U.S., you can imagine that the impact of AI consumption and processing power on energy systems is immense.
With scaling AI hinging on having the right energy sources, 2025 will be a watershed year where the tech industry could provide new capital for grid upgrades and further investments in lower carbon energy sources that the public will benefit from too. AI also holds the potential for reducing energy usage. Optimizing factors like server temperatures, fan speeds, and overall operations, AI has been shown to reduce data center energy consumption. This capability not only makes critical infrastructure more efficient but also sets the stage for broader innovations in how homes and businesses manage their energy footprint. Watch more here.
Maura Hodge From flirting to marriage... the relationship between AI and sustainability will mature quickly in 2025
Sustainability reporting is poised to accelerate with global companies, including U.S. multinationals, racing in preparation to meet the EU's CSRD reporting requirements, which include double materiality frameworks -- only leveraged by 50% of companies today. Messy, disparate data sources made using AI challenging in 2023 and 2024. Still, AI has to be a major part of the solution for efficient and effective reporting with mandates around the corner.
At the same time, AI requires all stakeholders to invest in more energy production to help scale its use, which makes meeting near-term sustainability targets more of a challenge. Today, the path forward is complicated with little consensus on the?interoperability of sustainability regulations and greenwashing. In 2025, pressure will rise to demonstrate new plans for increasing energy access and mitigating carbon emissions, while also ensuring that AI solutions are truly sustainable and not just a form of greenwashing.
Emily Frolick : Exploring the AI Terrain: Trust, Data Governance, and Creative Innovations in 2025
How will you be bold, fast, and responsible with AI in 2025? I think there are three things you’ll need to consider. First, you’ll need to prioritize getting clean data. Then, I would expect an increased focus on governance and developing trust. But, after that? I think your only limitation will be your imagination and your creativity. So, in 2025, as we all continue on this AI journey, I expect we'll continue to see more expansive and creative use cases for those companies that are on the leading edge making the best use out of this technology. Watch more here.
Thomas Mackenzie : Transforming Financial Reporting: AI and GenAI Revolutionize the Future of Finance
AI use is scaling in financial functions, and the pressure to continue to show ROI, not just through efficiencies, but now insights, will turn up in 2025: AI and GenAI are transforming the landscape of financial reporting, driving innovation and improvements in quality and efficiency.??
According to KPMG’s latest report on AI in Finance, the use of AI has reached its highest levels yet. Today, 92% of companies report their finance function’s AI initiatives are meeting or exceeding their ROI expectations, and one-third plan to increase AI budgets or shift funds from other activities to drive further AI adoption, indicating finance leaders are more inclined to shift spending priorities towards an AI-enabled financial reporting process as they see the returns on their AI investments.??
The benefits of AI will only grow as firms continue investing in and deploying new capabilities, and in the future, these trends will fundamentally shape the competitive positioning of finance functions in business strategy.?
Rupen R. Bavishi : Embracing Responsible AI: Navigating Regulations and Scaling Infrastructure in 2025
This time last year we were excited and energized as AI adoption took off. Over the last year we have quickly accelerated from exploration to implementation. As we look to next year, I am excited to not only continue to see how continued evolution of AI adoption changes the way we operate professionally and personally, but I am also curious to see how organizations and individuals think about responsible AI. The impending regulations will compel our clients to scale and adopt their infrastructure to stay up to date and compliant. It will also be very interesting to see what part AI plays in helping organizations evolve and scale their compliance initiatives. Watch more here.
Chad Seiler : Game-Changing Trends: Agents and Infrastructure Battles Shaping AI in 2025
As we look ahead to 2025, I'm going to keep my eyes on some really exciting trends playing out in AI. One of those, of course, is going to be the rise of agents, which are essentially going to operate as our autonomous coworkers working across functions and teams and in enterprise. And particularly, I'm going to be focused on the speed and scale which the agents are adopted and integrated into our daily workflows, which I think will accelerate overall AI adoption and essentially change the way we work. I'm also going to be watching out for some really interesting battles playing out in the infrastructure space. For example, our tech titans and other model builders are battling it out to see who can build the most powerful GPU clusters and data centers to really change the game and compute power and learning power. Watch more here.
"40+ stadium and arena renovation/new construction projects in progress for major sports franchises in 2025." Shawn Quill
Shawn Quill: AI will power the future of the fan experience
“AI.” We can’t escape it. It’s a part of our everyday lives, and in 2025, it’s coming to a sports venue near you. With a predicted 40+ stadium and arena renovation / new construction projects in progress for major sports franchises in 2025, cracking the code on how to leverage AI will be instrumental for leagues and teams as they strive to learn more about fan behavior and preferences. From location tracking services that can offer convenient and more efficient purchasing options for merchandise and food & beverage, to quick-turn custom and personalized content about one’s favorite athlete, to crowd management, wayfinding and security enhancements designed to reduce friction, AI has the power to create unique and improved experiences for every fan that enters the building. Read more here.
Jeff Mango: Empathy and AI Drive Superior Customer Experience
Our latest Consumer Experience Excellence report at KPMG anticipates that top-performing US companies will continue to harness empathy, personalization, and AI to secure a competitive edge. For 2025, I foresee the importance of empathy in creating meaningful, human-centered experiences becoming even more critical. Companies that can demonstrate a deep commitment to their customers' well-being and values will be perceived as higher value. Our report showed the growing role of AI in enhancing customer experience, with successful brands seamlessly blending AI with genuine human connection. This report underscores the ongoing transformation of customer experience in the U.S., driven by automation, AI, and evolving business strategies.
The 2025 Innovation Revolution: Transforming Industries through Collaboration, Customer-Centricity, and Cybersecurity
Sanjay Sehgal : The CFO, CIO, “Co-lab”
One notable trend that has gained momentum this year is the growing partnership between the CFO and the CIO. The reason behind this increased collaboration is the integration of technology into the finance organization.
With the emergence of AI, cloud-based solutions, narrative reporting, and other technologies, finance has become intertwined with technology. CIOs have been entrusted with the responsibility of overseeing the technology landscape going forward, as they possess substantial budgets. Finance, on the other hand, is consistently held accountable for delivering value and return on investment.
Consequently, a close relationship is forming between CFOs and CIOs, which I refer to as the CFO-CIO Co-lab. This collaboration allows for the combination of deep technical expertise and a focus on trust, return on assets, and return on investment. This synergy is proving to unlock significant value.
Moving forward, we can expect to witness more partnerships between CFOs and CIOs, as they jointly drive these transformative programs. Watch more here.
Frank Albarella, Jr. : Driving Success in 2025: Embracing Innovation and Customer Personalization
More data-driven personalization in streaming: I see emerging technologies like AI, paired with increasingly relevant and specific customer data that media companies are now able to collect, playing a lead role in entertainment. Next year, expect to see a further drive toward more personalized advertisements, some that may even align to the viewer’s surroundings or the program that they’re watching, tailored content recommendations to keep users engaged, new interactive features such as augmented replays of major plays and calls in sports, and increased accessibility options such as AI powered language translation. Watch more here.
"We will soon see the emergence of a new role - an ecosystem leader... responsible for driving an integrated strategy across these diverse relationships." Todd Lohr
Todd Lohr : The Rise of Ecosystem Leaders: Orchestrating Collaborative Success
As we move forward, I believe that the rapid advancements in artificial intelligence and other digital disruptions are leading most organizations to realize that they cannot tackle these disruptions within their own four walls. Instead, they are actively seeking strategic partnerships across the value chain, both upstream and downstream. These partnerships are not traditional for many businesses and sectors. Consequently, many organizations are now contemplating the concept of an ecosystem. This ecosystem is a construct that weaves together various relationships to set your business apart from competitors. Given the complexity and multitude of these partnerships, I predict that we will soon see the emergence of a new role - an ecosystem leader. This leader will be responsible for driving an integrated strategy across these diverse relationships. Watch more here.
Ron Walker: Breaking Borders: Tackling Cyber Threats with Managed Services
When it comes to cyber threats on a global scale, it is important to recognize that malicious actors do not adhere to borders or time zones. Therefore, it is truly a worldwide threat, and managed services present an opportunity to tackle it effectively.
Managed services offer a cost-effective solution for organizations of all sizes, from large enterprises to small businesses. Leveraging AI technology, we can potentially achieve 100% coverage in addressing these threats. The computing power available allows us to effectively combat cyber threats. Moreover, in the realm of automation and AI, the algorithms themselves are suggesting modifications based on their observations, rather than relying solely on human intervention. Of course, human oversight remains crucial, but this approach represents a departure from traditional practices. Watch more here.
"So, for 2025, we're going to see significant investment across marketing, sales, service, all in the name of improving that business facing customer experience." - Scott Lieberman
Scott Lieberman : Redefining B2B Interactions: The Rise of Customer-Centric Experiences in 2025
My big idea for 2025 is that companies are going to be investing in business-to-business experiences. Nearly two-thirds of us are dissatisfied with the experience that we get in our business-to-business interactions. We see it every day. It's the consumer experiences we have that are setting the bar, but it hasn't translated, and companies are recognizing that there's a big gap. So, for 2025, we're going to see significant investment across marketing, sales, service, all in the name of improving that business facing customer experience. Watch more here.
Claudia Saran : Navigating the New Normal: Unveiling the Complexity of Supplier Networks
Manufacturers have diversified their supplier network and become more agile but are once again needing to scrutinize their cost of materials and components, and the impact on their challenged profit margin. Companies need greater visibility into their entire supply chain to better understand their true costs. Supplier networks are much more intricate than they were pre-pandemic because of the de-risking that went on over the last few years. Manufacturers typically know their tier one and tier two suppliers well, though lack substantive information and visibility beyond them. This is concerning. Accessing and trusting that information, past, present, and future, can propel manufacturers well ahead of where they and their competitors are today. Watch more here.
Kristin Pothier : Shaping the Future of Healthcare: Trends That Will Lead Global Innovation in 2025
Lenny LaRocca: Auto Sector Evolution: Balancing Delays, Investments, and Regulations in the Leap from Tradition to Futurism
The automotive industry is in the midst of significant shifts, particularly in the realms of Electric Vehicles (EVs) and Autonomous Vehicles (AVs). Lenny LaRocca, KPMG US Automotive Sector Leader, suggests keeping an eye on the trend of traditional Original Equipment Manufacturers (OEMs) reducing their investments in EVs. At the same time, newer companies are heavily investing in advanced technology, potentially leading to a changing of the guard.
The dominant players in the EV market might not be the same companies that currently rule the gas-powered vehicles or hybrid sectors. The high cost of delays in EV deployment is limiting capital and investment in full autonomy. However, automakers are not losing focus on driver-assistance technologies. LaRocca also predicts more consolidation in both the EV and AV spaces. While we are still several years away from mass deployment, AVs may continue a slow roll and could be accelerated by potential federal regulations.
Deal-Making Renaissance: The Resurgence of Private Equity and M&A in 2025
Gavin Geminder: 2025: The Year Private Equity Roars Back
Private Equity (PE) is poised for a transformational year ahead. After a slower period, 2025 is set to bring renewed momentum and big opportunities for the industry. Here’s what I believe will shape the next 12 months:
These shifts represent more than just recovery—they signal redefining how Private Equity creates value. Confidence in the markets, strategy innovation, and asset allocation adaptability will define success in the months ahead. Watch more here.
Carole W Streicher: Emerging from Hibernation: Corporate Deal Makers Back in Action
Glenn Mincey: Rebounding Strong: Private Equity's Resurgence in 2025
The PE deal market is on track for a significant rebound in 2025. After nearly two years of slower activity, the industry has made much-needed progress in resetting and refocusing. One of the biggest challenges I’ve seen, the gap between buyer and seller valuations, is narrowing as expectations align and the economic outlook stabilizes.
In this “reset,” firms are concentrated on value creation and strengthening portfolio companies, laying a strong foundation for future growth. With the Federal Reserve easing monetary policy and interest rates trending downward, the cost of capital, which is a key driver for private equity returns, is becoming more favorable as the industry looks towards opportunities to create value for investors.
The groundwork over the past 18 months has been critical and positions the sector to take advantage of the opportunities ahead. I expect a robust return to deal-making activity, supported by healthier portfolios and aligned market conditions. PE is ready for the year ahead. Watch more here.
Duleep Rodrigo: M&A and AI - The Dual Drivers of Growth in the Consumer Goods Sector
In my analysis, I foresee that M&A will emerge as the primary growth strategy for numerous consumer goods companies by 2025. The increasing demand for value from consumers is exerting pressure on prices and margins, making it more challenging to achieve top-line growth. As a result, M&A will become the leading option for companies in our sector. This shift is expected to bring about unexpected transformations in consumer product portfolios.
Furthermore, I anticipate that the consumer focus on price will drive a significant acceleration in the adoption of AI and other technologies by retailers. These technologies will be instrumental in enhancing employee productivity and fostering business growth. Additionally, there will likely be a substantial surge in the deployment of AI agents within the retail industry. Watch more here.
Dean Bell: 2025: A Year of Deals and Portfolio Optimization for Companies ?
As we go into 2025, a couple of things are going to be good for us to think about. Number one; rates will go down, and there's pent up demand to do deals. That bodes well for a very active deal advisory market in 2025. And overall, 2025 is an opportunity for companies to really think about how they're going to right size their portfolios. Watch more here.
To sell or spin off? Scott Purdy on the top question to the media industry.
Scott Purdy: Navigating the Media Crossroads: Selling or Spinning Off in 2025
To sell or spin off? In my opinion, there will be more "fork in the road" moments for media companies in 2025. This is mainly due to cord cutting, the decline of cable subscribers, and ad revenue. Two prominent options keep emerging in this situation. One option is to separate declining businesses from the growing ones, similar to past print asset spin-offs. The other option is to maintain the portfolio of assets because the content ecosystem still holds value and network separation is too complex. For more insight on what media dealmakers are watching click here.
Jarrod Bassman: The Future of Leadership: Evolving Mindsets for Growth and Impact in 2025
I am thrilled and invigorated by the exciting possibilities that lie ahead as we embark on 2025 with an exceptional team. Today, we have high-potential teams equipped with increasingly powerful new technology. However, we will require more from our leaders. The traditional top-down leadership model is no longer sufficient. To thrive in this era, we must maintain an insatiable curiosity and possess a mindset focused on continuous improvement. It is imperative that we all elevate our performance.
In order to succeed in 2025, leaders must be adaptable and embrace a mindset, placing emphasis on service, trust, and purpose. This year, my primary focus will be on empowering our team to unlock their full potential, fostering trust, driving innovation, and cultivating a culture where everyone can flourish, achieve their aspirations, and contribute to our clients' success.
Thus, the challenge that lies before us in 2025 is how we will lead to unleash the complete value and potential of our team. Watch more here.
2025 Forecast: Economic Slowdown and Regulatory Revolution
Rema Serafi: Tax Trifecta: The Triple Threat Challenging the C-Suite in 2025 and Beyond
In 2025 and beyond, the C-Suite – as well as businesses of all sizes – will continue to grapple with what KPMG refers to as the ‘Tax Trifecta’: 1) how Congress will address the expiration of $4 trillion in tax cuts from the 2017 Tax Cuts and Jobs Act, 2) the ongoing implementation of the Organization for Economic Co-operation and Development’s global minimum tax and the future of the regime should the US not comply, and 3) a wave of regulatory changes, including changes introduced by the Inflation Reduction Act, the corporate alternative minimum tax and potential tariffs.?
Diane Swonk : 2025 Economic Forecast: Slowing Growth, Policy Shifts, and Tariffs Reshape the Landscape
In my 2025 economic forecast, I paint a picture of a slowing economy, buffeted by policy changes and new tariffs. I see real GDP growth cooling to 1.8% from 2.7% in 2024. Consumer spending, though slowing, is expected to hold firm, though housing could hit a rough patch due to affordability issues. Business investment is poised for a boost, but inventories may be depleted by strikes and storm damages. With policy shifts impacting the economy, the Federal Reserve is likely to ease off interest rate cuts. My forecast flags inflation risks and softer growth, while projecting a squeeze on corporate profits amid a robust dollar and rising rates.
Amy Matsuo : Can Businesses Navigate the Pinball Shifts of Future Regulatory Divergence? KPMG Ten Key Regulatory Challenges of 2025
In 2025, the business landscape will be shaped by a significant regulatory shift, according to our Ten Key Regulatory Challenges report. This data analysis and insight predicts a year marked by changes in technology, data risks, and consumer protections. Companies will need to adapt and respond proactively to mitigate emerging risks.
The scenario analysis identifies ten key regulatory challenges, including regulatory divergence, trusted AI & systems, cybersecurity, financial crime, fraud & scams, fairness & protection, financial & operational resiliency, parties & providers, governance & controls, and markets & competition. These challenges will be influenced by a new administration, agency leadership changes, and an expanding regulatory divergence.
Key Insight: Companies must remain vigilant against potential new, emerging, and downstream risks—even amidst an agenda to reduce regulatory burden. The ability to balance diverse regulations and stakeholder interests will be crucial in mitigating potential risks and aligning with emerging and evolving regulatory expectations. Read more from this year’s KPMG Ten Key Regulatory Challenges of 2025.
"Private companies reporting inside and outside the financial statement will draw investor attention." Angie Storm
Angie Storm : Beyond Financial Statements: Reporting and Investor Attention in 2025
Private companies are poised to grow in 2025, but the fine print on reporting both inside and outside the financial statement will draw attention of investors seeking to deploy cash: From government grants to environmental credit programs, the Financial Accounting Standards Board (FASB) is very active with several proposals and initiatives that will impact private businesses and necessitate broad stakeholder engagement.
Private businesses that report outside of financial statements are expected to focus on matters critical to their longer-term value creation. This includes private companies’ digital transformation journeys, with a focus on AI and cybersecurity, as well as sustainability initiatives, which involve not only climate-related considerations but also human capital management efforts and governance considerations.
In fact, a recent KPMG survey found that 66% of private and recently public companies rank cybersecurity risk as the most relevant area of reporting or disclosures outside of financial statements, followed by ethical use of AI (61%). Learn more here.
Anne Zavarella : Beyond Financial Reporting: Expanding the Role of Audit Committees in 2025
Focusing on financial reporting and internal control risks remains job number one for audit committees. 2025 likely will bring major tax legislation, which could shape the business environment for years to come, given the potential impacts on cash flow, investment, and the business landscape.
Audit quality remains a cornerstone, with a need to understand management’s preparations for climate reporting and other Public Company Accounting Oversight Board frameworks and standards.
Technology innovation and disruption—GenAI—should be prompting a reassessment of the companies' data governance practices. Clarifying the audit committee’s oversight role for GenAI, cybersecurity, and data governance should be high on the agenda, as should internal audits, and how they might extend beyond traditional financial reporting. Learn more here.
John Rodi : Strengthening Oversight: Boards' Role in the Complexities of 2025
Maintaining focus on how the new administration’s policy positions— on tax, trade, immigration, and regulation—may impact the economic, geopolitical, business, and risk landscape will be critical for boards in 2025.
AI will continue to pose opportunities and challenges, requiring boards to understand the company’s AI strategy and its alignment with business goals, while monitoring risks related to data quality, cybersecurity, and compliance with new regulations.
CEO succession planning, talent development, and culture also should be front-and-center. Effective communication with stakeholders, a focus on transparency and enhanced disclosure practices will be essential to navigating the complexities of 2025 and enabling boards to maintain strong oversight. Read more here.
Lorna Stark : Setting the Pace: Government's Thoughtful Approach to AI Adoption in 2025
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Experienced Leader at Orange County Public Schools
1 个月Much like the Industrial Revolution and other pivotal moments in history, the rise of AI will undoubtedly bring its challenges. But, just as we’ve seen before, these transitions often lead to progress and improvements in the long run. I’m excited to see where this journey takes us! What do you think?
MSc Data Science Student at Christ University | Proficient in Python, R, SQL, and Tableau | Skilled in Machine Learning & Data Analysis | Driven to Deliver Data-Driven Solutions"
1 个月Excited to see KPMG's insights and predictions for 2025,looking forward to navigating the future with these trends!
This is an exciting launch! It’s great to see innovation driving the finance industry forward. For comprehensive finance courses, visit www.comandfin.com.
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1 个月Merci
Driving digital marketing success through data-driven strategies
1 个月AI will continue to be the topic of the moment for the coming year, maybe even next 5 years. Check out our website comandfin.com