4 Business Trends Every Leader Should Know in 2025

Before looking forward to this year, we should take a moment to reflect on last year. What were some of the top things that happened in 2024?

• Climate crisis intensified: 2024 was the hottest year on record
• Elections worldwide: Around 80 countries held national, state, or local elections
• Ongoing conflicts: Wars in for example Ukraine, Gaza, and Sudan continued
• AI advancements: Developments continued to amaze and concern
• Economic shifts: The global economy stabilized with inflation easing, though vulnerabilities remain

Major changes are underway, and 2025 is likely to bring even more. So, what trends should businesses and leaders focus on this year? Here’s a closer look at four key areas:

1. Urgent Need for Sustainable Business

While unsustainable brands like Temu and Shein remain popular, the rise of the circular economy and a culture of reuse signal that sustainability still matters to consumers.

According to PwC’s 2024 Voice of the Consumer Survey, over 80% of consumers are willing to pay more for sustainability, even amid rising living costs. However, Euromonitor highlights that while sustainability is a factor, quality and value for money remain top priorities.

For businesses, the urgency of climate action cannot be overstated. The scientific consensus is clear: failing to act will lead to catastrophic outcomes. Companies must integrate sustainable practices, such as:

• Implementing eco-friendly operations
• Investing in renewable energy
• Ensuring transparent sustainability reporting

It’s not just about consumer demand; it’s about ensuring long-term survival and positive impact.

2. Navigating in a Polarized World

From ongoing conflicts in Ukraine, Gaza, and Sudan to last year’s “super year” of elections, 2024 deepened global polarization. Political unrest and shifting landscapes present challenges for businesses, requiring leaders to adapt.

Some key considerations for 2025, as highlighted by the World Economic Forum, include:

• Preparing for unpredictable trade regulations and supply chain disruptions
• Navigating the influence of new players, such as emerging states and social influencers
• Engaging diverse stakeholders to understand varying perspectives

Leaders must also address their organization’s stance on pressing social and political issues. According to Forbes, leaders should carefully consider their approach when making public statements on controversial topics. Proactive preparation and clear communication will be critical in managing these challenges effectively. Silence may no longer be an option, as consumers are increasingly concerned about sociopolitical issues and make more value-based decisions.

3. Smarter Use of Artificial Intelligence (AI)

This is nothing new: AI continues to reshape the business landscape. While 2024 may have been a year of exploration for some, 2025 demands action. As Forbes states, “Leaders must go beyond understanding AI; they need to actively leverage it.” To maximize AI’s potential:

• Invest in AI technologies
• Upskill employees to collaborate effectively with AI
• Establish ethical guidelines for responsible AI use

But don’t replace everything with AI. Firstly, it’s not very sustainable. For example, according to Goldman Sachs, a ChatGPT query consumes nearly 10 times as much electricity as a Google search. Secondly, using AI tools is not and should not be the answer for everything, and companies need to be strategic about integrating it to their operations (not simply throw problems at it).

At the Nordic Business Forum 2024, Professor Morten Hansen shared a helpful framework:

1. If you can get the same quality as a human with AI -> Automate
2. If you cannot get the same quality as a human with AI -> Augment

Ultimately, leaders should focus on how AI can create meaningful value, enhancing—not replacing—work.

4. Focus on Workplace Well-being

Employee well-being remains a top priority in 2025. It’s an issue that demands attention from various aspects such as mental health, flexibility, and diversity, equity, and inclusion (DEI).

Mental health: Depression and anxiety result in 12 billion lost workdays annually, costing $1 trillion in productivity. Supporting mental health isn’t just ethical; it’s essential for organizational success.

Flexibility: The International Labour Organization (ILO) reports that flexible working arrangements benefit both employees and organizations, boosting productivity and satisfaction.

DEI initiatives: While DEI programs are under pressure in some regions (especially in the US), European companies should double down. According to EY’s European DEI Index, there’s room for improvement in promoting diverse, equitable, and inclusive cultures. Enhanced DEI efforts can drive innovation, connectivity, and adaptability.

Especially in today’s business environment, leaders must create workplaces where the multiple aspects of well-being are integrated into daily operations.

Look Around Today to Prepare for Tomorrow

It’s clear that there are many other trends and areas business leaders should consider in 2025 in addition to the ones above. The best way to stay on top of the trends is to keep your eyes and ears open. As Bozoma Saint John said at Nordic Business Forum 2024, in order to be ready for the future, you need to pay attention to what’s happening in the world around you today.

Sources and further reading:

• https://www.cfr.org/article/ten-most-significant-world-events-2024
• https://www.idea.int/initiatives/the-2024-global-elections-supercycle
• https://www.weforum.org/stories/2024/09/chief-economists-outlook-global-economy-growth/
• https://www.fastcompany.com/91244057/4-leadership-trends-to-watch-in-2025
• https://www.ft.com/content/6ff3a3e2-0dc6-4d0b-b9e5-a0a74fc02e3e
• https://www.nytimes.com/2025/01/04/business/dealbook/what-were-watching-in-2025.html
• https://www.fastcompany.com/91247655/this-is-how-dei-will-change-in-2025
• https://newsroom.accenture.com/news/2024/accenture-life-trends-2025-predicts-new-dynamics-of-trust-will-reshape-relationships-between-people-and-businesses