As we head into 2025, tech, business, and engineering are changing fast. In this blog, we've rounded up some key predictions from two senior Daemonites, Kyle Hauptfleisch, our Chief Consulting Officer, and Henry Ayres, Head of Engineering Practice. They share some timely insights on AI, digital transformation, and what's next for retail supply chains.
AI: from buzz to real use
AI has been all over the news lately, but as Kyle Hauptfleisch points out, 2025 is going to see a slow shift from hype to real-world use. While the possibilities of AI are exciting, companies are still struggling with how to manage risk and implement embedded solutions at scale. Tools that augment development, as an example, are easier to implement but larger integrations require expertise and risk appetite.
Kyle mentions a big issue: a lot of companies have AI plans but can’t find the expertise to safely implement those plans. Without the right skills in action, AI projects can get stuck in proof-of-concept limbo, never really taking off.
“To see real value from AI, businesses need to identify low-risk areas to test and then incrementally scale those implementations, increasing risk in lock step with institutional experience. Experimenting is an imperative part of the process, but to avoid falling into a cycle of perpetual proof of concepts, there needs to be a clear plan for incremental impact and the skills to support them.”
We're starting to see AI making a real impact in complex areas like logistics and science, where it actually creates meaningful changes. But in more traditional industries, businesses are still nervous about rolling out AI on a big scale. That hesitation will eventually fade though, and AI will likely become as common as electricity or cloud services, running in the background and adding serious value. To really get the most out of AI, companies need to focus on weaving it into their everyday operations to solve real issues, instead of treating it like just another trend or experiment. The shift will be slow and then very fast.
Digital evolution
We talk a lot about digital transformation at Daemon, but as businesses get comfortable in this digital age, the spotlight is shifting from transformation to digital evolution. Digital evolution is about building on the changes that are already happening and being ready to adapt to new tech as it comes along.
By 2025, the main challenge for organisations won’t just be about going digital anymore; it’ll be about evolving their digital setups to keep up with what’s relevant. As technology keeps advancing, companies will need to make smarter investments, cut out redundant processes, and adapt quickly to changing demands. A big area to focus on will be making internal development processes smoother. Modern Internal Developer Platforms (IDPs) will be key in managing tech standards and helping teams work efficiently across different tech areas.
Retail supply is more than just logistics
When looking at retail trends for 2025, we spoke to Daemon’s Head of Engineering Henry Ayres. Henry predicts that by 2025, the retail supply chain will be a key driver of customer loyalty rather than just a logistics function. When demand heats up in retail, firms will need to streamline their supply chains, optimize operations, and deliver real results.
“In 2025, the retail supply chain will redefine itself as more than just a logistics process, it will be a strategic driver of customer loyalty. As competition tightens, Artificial Intelligence (AI) and data analytics will take centre stage, and supply chains will shift from multiple experimental investments to larger scale transformative tech solutions that deliver tangible ROI and impact the bottom line.”
Connect with Henry on LinkedIn
Sustainability matters
In 2025, more and more emphasis will be placed on sustainability across everything we do. As such, consultancies will need to refocus. Instead of just giving out advice and implementing solutions, they’ll be working side by side with clients to uncover new opportunities, innovate, and solve problems together.
Clients need more than just tech solutions, because those solutions have to mesh with environmental goals. Henry Ayres points out that the future of consulting will involve firms balancing strategic, technical, and sustainable solutions to keep thriving and adding value.
Experience is in high demand when it comes to engineering
With generative AI tools on the rise, there’s a chance that newer engineers might skip over the fundamental problem-solving skills that are important for tackling new challenges. As companies start relying more on AI tools, especially in software engineering, there’s a real risk that these tools provide quick fixes without building up the deeper knowledge that engineers need to deal with complex problems in the real world.
In 2025, experienced engineers are still going to be in high demand. AI tools can boost productivity, but they won’t replace the critical thinking and adaptability that skilled engineers bring to the table. The UK is already feeling a skills gap, and this is likely to get wider unless companies focus on developing engineering talent ready to tackle complicated, unexpected issues.
Are you excited or nervous about the challenges your business will face this year?
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Whether it’s AI implementation support or digital engineering, we’re here to help.