A recent report, ‘Navigating Uncertainty with Confidence – Investment Priorities for 2025,’ by the Capgemini Research Institute highlights increased optimism among business leaders despite a challenging market environment. The survey reveals that 62% of executives feel positive about their organizations' prospects for 2025, reflecting a 6-percentage-point increase from last year and a 20-point rise since 2023. However, broader market confidence remains subdued, with only 37% optimistic about the global outlook. To navigate economic challenges, 56% of respondents plan to prioritize cost reduction over revenue growth, even as half anticipate increased investment in the coming year.
The survey also reveals increased worry over tariffs and trade tensions, pushing almost 75% of firms to diversify their sourcing strategies, including friendshoring. Sustainability investment is another priority, with budgets set to rise by 10.5% on average. Climate technologies, such as batteries, solar energy, and hydrogen, lead this area, supported by an interest in biodiversity and water conservation. Technology investment, particularly in AI and generative AI, remains a top priority, especially for U.S. based firms, where 84% of leaders cite competitiveness as a key driver. Key areas of focus include customer experience, innovation, and supply chain transformation, with significant emphasis on integrating AI and IoT to enhance efficiency and sustainability.
