“Are businesses prepared for the complexities of 2025?” asks LBMC’s just-released 2025 Business Outlook Report, citing economic uncertainty, shifts in customer expectations, and changes to both how businesses operate and how they structure their workforces. Generative AI, omnichannel technologies, and IoT (Internet of Things) automation are changing how companies across many sectors do business. According to the report, firms in healthcare, manufacturing, real estate, and technology face resource limitations as they strive to scale in increasingly competitive markets.
LBMC is a top 40 public accounting firm, and this is their eighth annual Business Outlook Report, offering forecasts into U.S. economic changes and the regulatory environment while highlighting five key business trends for 2025.
1. Adopting Dynamic Workforce Structures
“CEOs are most concerned with talent retention,” the report notes, “as well as upskilling for AI integration and emerging technologies.” Leaders in 2025 will need to focus on both the integration of technology and training in soft skills to develop a resilient and inclusive workplace. The report offers details on the more widespread adoption of blended workforce models, which have not only reshaped operational practices and procedures but have also changed what employees expect from employers. At the same time, these new workforce models have expanded companies’ ability to recruit and develop talent globally, as more companies staff their workforce across borders and technological modalities while delivering training online—and just in time. 40% of companies also say that remote work has allowed them to hire more inclusively from underrepresented groups.
“Transformation is occurring at an unprecedented pace,” Jim Meade, CEO of LBMC concludes. “We must anticipate change and adapt organizationally to where we need to be for our clients and our people.”
2. Generative Artificial Intelligence/Innovation
The report cites forecasts that the U.S. generative AI market will grow from $5.03 billion to $241.41 billion by 2033. LBMC shareholder Jon Hilton remarks, “The age of AI is here, and in 2025, businesses will be moving from thinking about AI to implementing AI for a true competitive edge. Agentic AI is emerging as a powerful force in automation, making data readiness and AI pilot programs vital for staying ahead.”
The early impact of generative AI is being seen in product design, operational efficiency, consumer experience, and customer service. According to the report, 65% of American CEOs believe that generative AI will have “a major influence” on their firms in three to five years.
3. 5G Connectivity
Standalone 5G networks are expanding quickly, providing more automation and speedier data processing, allowing for smarter systems. The LBMC report cites breakthroughs in virtual reality, high-density video apps, systems for monitoring supply chain efficiency and accuracy, and AI-driven analytics. “Through capabilities like flexible network slicing,” the report adds, “companies may satisfy special operational needs while fostering innovation and efficiency in a data-driven environment. Immersive customer experiences, real-time operational enhancements, and enhanced automation cannot be emphasized enough. Companies embracing this technology will be positioned to take advantage of its transforming power, resulting in a more connected and productive future.”
4. Omnichannel Growth and E-Commerce
“Investments in user experience are not optional,” the report cautions, “as the share of mobile shopping transactions continues to increase.” Artificial intelligence is making it possible to obtain detailed consumer behavior analysis quickly and to provide more customized product recommendations and tailored customer interactions, improving conversion.
Besides monitoring user behavior in mobile apps, the report notes that omnichannel strategies that integrate data, logistics, and consumer interactions across brick-and-mortar and e-commerce stores are “no longer a trend but rather a necessity.” Companies with strong omnichannel consumer engagement strategies are seeing 89% customer retention, compared to just 33% for companies with weak omnichannel strategies.
5. Cybersecurity and Sustainability
Finally, the report notes the pressing need for improved cybersecurity and sustainability. Data breaches rose by 490% in 2024. Besides strengthening mobile and cloud security, more companies are adopting energy-efficient technologies, both to improve regulatory compliance and build confidence among stakeholders.
Across all of these trends, LBMC’s report stresses that companies will be “living through change in 2025.”
You can find the full report of 106 pages here.
Image Credit: Glenn Carstens-Peters at Unsplash.
