2025 could be remembered as the year businesses stopped doing digital and started being digital. Three forces are converging at once: an AI-fluent workforce, digital-native leaders stepping into senior roles, and the mainstreaming of transformation as an ongoing business model rather than a one-off project. But what are the factors leading to a tipping point in how organisations think, operate and grow?
1. An AI-Fluent Workforce is Ready to Influence Change
The UK government’s £187m ‘TechFirst’ initiative is working towards upskilling one million students with AI competencies. This marks a monumental change. Unlike previous generations who had to adapt to digitalisation on the job, a new generation of employees will enter the workforce already fluent in AI-enabled tools, expecting to use them as naturally – and frequently – as emails or spreadsheets.
But this is not only about age. Much of today’s AI adoption comes from employees of all generations who have a growth mind-set, are open to innovation, and see the power of AI to improve how they work. For businesses, it means that adoption is no longer just a top-down initiative, but a bottom-up demand, with employees themselves driving the AI tipping point in the workplace.
Early adoption of generative AI since 2022 has been broad and cross-generational. Slowly but surely, more people are viewing AI as a standard part of their toolkit. This change places a new onus on leaders to create an environment where AI’s potential can be fully realised.
2. AI Adoption in Business is Beginning to Accelerate
AI is no longer on the horizon, it’s here, and reshaping outcomes already. Projections by PwC suggest that AI could contribute up to $15.7 trillion to the global economy by 2030, potentially boosting global GDP by roughly 14%. That scale of impact underscores why organisations must not only adopt AI but embed it in ways that create lasting value.
Our own research reports that 75% of firms now report high confidence in profitability, budget adherence, and client outcomes, compared to just 59% a year ago. In addition, 40% of firms report they are prioritising AI and automation to streamline processes. While maybe not directly correlated, implementing these tools to make organisations more efficient will undoubtedly have an influence on a more positive business outlook.
Further, AI is no longer just confined to the back office. In project-based industries, intelligent tools are transforming front-office activities like proposal generation, RFP responses and resource planning, and mid-office functions such as project accounting and risk forecasting. Notably, this is not simply about applying technology to existing processes but redesigning end-to-end workflows driven by AI. This fundamentally changes how work gets done.
Many of these applications are still in their early stages, but the direction of travel is clear: predictive and proactive insights are steadily replacing reactive problem-solving, allowing organisations to redirect energy towards growth and innovation.
3. Digital Transformation is Being Redefined in 2025
For years, “digital transformation” was a catch-all phrase, often used as a label for piecemeal software upgrades or isolated IT projects. That approach has evolved. Transformation and AI have become central to the boardroom agenda. Businesses shouldn’t think separate AI or transformation strategies, but rather an overall business strategy where they are both integrated.
Digital transformation is about building organisations that are agile, data-led and continuously evolving. Our own research shows that over half of UK project-based firms (56%) now classify their digital transformation as being at a ‘mature’ or ‘advanced’ stage, representing a huge leap from just 32% in 2024.
Yet challenges remain: 44% of organisations would not yet describe themselves as ‘mature.’ Transformation is a journey, and for many firms it is early days. The gap between leaders and laggards is widening, and those who fail to view it as a continuous journey risk being overtaken by more adaptive competitors.
There is a reason why 2025 marks a key moment for this journey mindset. As the youngest baby boomers now begin to enter their early sixties, ‘analogue’ leaders will imminently retire and begin to vacate their roles for the first generation of digital natives to fill. For these leaders, technology is not an accessory or a learned skill, but a native language. Their instincts are rooted in adaptability, data-informed decision-making and resilience.
Equipped with AI, they will be the first to deliver integrated, platform-based solutions that break down silos and enable real-time collaboration. This shift promises a holistic view of the business – the long-sought ‘single source of truth’ at the heart of digital transformation.
The Tipping Point for AI-Driven Business
Taken together – digital-native leaders, embedded transformation, and accelerating AI adoption – 2025 marks a true tipping point. The balance of these forces is key: AI on its own will not transform businesses, but in the hands of digitally fluent leaders and a workforce open to change, it becomes a catalyst for lasting value.
Organisations that seize this moment will achieve integrated, platform-based operations, break down silos, and unlock real-time, data-informed decision-making across every level of the business.
The stakes are clear: those who embed transformation as a continuous journey will be more resilient, innovative, and competitive. Those who delay risk falling behind in a rapidly evolving landscape where adaptability, speed, and insight define success.
