As 2025 draws near, the technology landscape is primed for continued change and reinvention.   

With artificial intelligence (AI) reaching new levels of maturity and enterprises refining their digital strategies, small and medium-sized businesses (SMBs) face both unprecedented opportunities and complex challenges.  

Understanding external forces that impact the tech industry will be essential for organizations looking to thrive in this evolving digital environment.  As business leaders grapple with the rise of an AI-augmented workforce and increasing demands on technology infrastructure, strategic technology decisions will become more critical than ever. The focus is shifting from broad experimentation to targeted solutions that deliver measurable business value. 

Five strategic priorities for the technology industry in 2025

1. Navigate the evolving investment climate

The technology sector is entering 2025 with renewed momentum as market conditions shift from pure efficiency to efficient growth. After several years of cost optimization, small and medium businesses face a more favorable environment for strategic investment and expansion, driven by lower interest rates and increased competition for quality assets. 

Key indicators suggest a market transition that presents both opportunities and considerations.  Enterprise IT spending is being prioritized with elevated AI investments, while revenue growth in software and cloud services is expected to maintain high single digits through 2025. The PC refresh cycle and AI infrastructure investments provide meaningful tailwinds, particularly in the second half of the year. 

For small and medium businesses, this environment demands a balanced approach:   

• Data-driven product strategies that demonstrate clear return on investment 
• Strategic resource allocation that balances cost management with growth initiatives 
• Focused investments in AI capabilities to maintain competitive positioning 
• Maximization of existing data assets to secure market advantages 

Companies that can refine their strategies to deliver measurable impact while rationalizing their product portfolios will be best positioned to capitalize on these improving market conditions. 

2. Build and retain future-ready tech talent

The technology talent landscape is undergoing a significant transformation as we enter 2025. With the boom in AI, quantum computing and spatial computing outpacing the available talent pool, small and medium businesses face increasing challenges in attracting and retaining skilled professionals. 

According to Forrester, 70% of IT organizations risk undermining their future by reducing early career development opportunities. This short-term focus on highly specialized talent, particularly in AI, has created a concerning split in the workforce. Entry-level positions have diminished, threatening the crucial talent pipeline needed for sustainable growth. 

Advancing in this competitive landscape requires a multi-faceted approach: 

• Investment in continuous learning and development programs, particularly in high-demand areas like AI, cybersecurity and cloud computing 
• Creation of clear career advancement pathways to retain high-potential talent 
• Implementation of mentorship programs that pair experienced leaders with emerging talent 
• Development of flexible work arrangements and competitive compensation packages 
• Strategic focus on building internal talent pipelines rather than solely relying on external hiring 

The challenge is particularly acute as companies navigate increased demand for specialized skills while managing potential changes in immigration policies that could affect the tech workforce. Organizations that invest in developing and retaining talent while creating inclusive workplace cultures will be best positioned to thrive in this competitive environment. 

3. Strengthen privacy and data governance frameworks

The increasing sophistication of AI systems and proliferation of IoT devices in 2025 brings data privacy and governance to the forefront of technology priorities. For small and medium businesses, navigating this complex landscape requires careful attention to both regulatory compliance and user trust. 

As technology integration deepens across business operations, organizations face heightened scrutiny over their data handling practices. The anticipated shifts in U.S. policy under the new administration create additional uncertainty, with potential implications for how businesses collect, store and utilize data. Silicon Valley’s response — increasing investment in legal and compliance expertise — signals the importance of preparing for a more complex regulatory environment including the following:  

• Development of robust data governance frameworks that anticipate regulatory changes 
• Implementation of privacy-by-design principles in technology deployments 
• Investment in compliance expertise and tools to navigate evolving regulations 
• Regular assessment and updating of data protection measures 
• Clear communication with stakeholders about data handling practices 

Organizations that proactively address these challenges while maintaining innovation will be better positioned to build trust with users and adapt to changing regulatory requirements. The key is finding the balance between leveraging data for business growth and ensuring responsible data stewardship. 

4. Drive value through AI maturity and responsible innovation

The artificial intelligence landscape is entering a crucial phase in 2025, as organizations move from experimentation to operational implementation. According to Gartner, 75 percent of enterprises will shift from piloting to operationalizing AI this year, marking a significant transition in how businesses leverage this technology. 

For small and medium businesses, this evolution presents both opportunities and challenges. The focus is shifting from general AI applications to specific, value-driven implementations that can demonstrate clear business impact. Companies now have more options to develop customized solutions using proprietary large language models and data lakes, rather than relying solely on pre-configured solutions. 

Key considerations for SMBs implementing AI include: 

• Development of clear ethical frameworks and governance structures for AI deployment 
• Investment in scalable and cost-efficient AI tools that align with business objectives 
• Integration of AI capabilities into existing workflows and products 
• Management of increasing energy and infrastructure demands, particularly for data centers 
• Implementation of bias mitigation strategies and responsible AI practices 

Success will depend on balancing innovation with responsibility. Organizations must navigate the challenges of AI monetization while addressing ethical considerations and environmental impact. The winners will be those who can demonstrate tangible business value while maintaining strong governance frameworks. 

5. Prepare for a shifting technology policy landscape

The technology sector faces significant policy uncertainty as we enter 2025, with the potential for substantial regulatory shifts under the new administration. While campaign discussions provided limited insight into specific technology policies, several critical areas are likely to see meaningful changes that will impact small and medium businesses. 

Key policy areas requiring attention include: 

• AI regulation, with potential shifts away from current frameworks toward a focus on infrastructure development and catastrophic risk management 
• Semiconductor industry support, with possible changes to CHIPS Act implementation 
• Autonomous vehicle regulations, with potential easing of current restrictions 
• Digital payment oversight, particularly regarding cryptocurrency and digital wallet services 
• Clean technology incentives, with possible changes to existing tax credits 
• Patent policy reforms that could affect technology protection and licensing 

Organizations that maintain adaptable regulatory compliance frameworks while staying focused on innovation will be best positioned to thrive amid policy uncertainty. 

Looking ahead 

The success of an organization will depend on their ability to navigate evolving talent demands, harness AI maturity, strengthen data governance and adapt to policy shifts. Those who can balance innovation with responsible implementation while maintaining operational efficiency will be best positioned to thrive in this rapidly evolving digital environment. 

As technology continues to reshape business operations, the key to thriving lies in strategic preparation and adaptability. Organizations must stay informed about emerging trends while maintaining focus on sustainable growth and value creation. The companies that will excel are those that can transform these challenges into opportunities for innovation and competitive advantage. 

Maximize your technology strategy with BPM 

BPM’s Technology Industry Group brings deep experience to help organizations navigate the complexities of digital transformation. Our comprehensive services include: 

• Technology strategy and implementation guidance 
• AI and data governance advisory services 
• Regulatory compliance and risk management 
• IT security and privacy consulting 
• Tax planning and optimization for technology investments 
• Digital transformation roadmap development 

With our extensive industry and technical knowledge, we help organizations optimize their technology strategies while ensuring compliance and maximizing opportunities in this evolving landscape. Whether you’re implementing AI solutions, strengthening data governance or adapting to new regulations, BPM is here to support your objectives.   

Contact us today to learn how we can support you.