The 2025 Global Trends Brief by The KPI Institute outlines the key forces—geopolitical, economic, sociocultural, technological, environmental, and legal—shaping organizational strategy. While the first four dimensions are transforming the workforce and operations, the environmental and legal factors add further complexity to strategic planning.

According to the brief, investment in energy and natural resources is set to reach record levels in 2025, surpassing $1.5 trillion—about 6% higher than in 2024. This growth is closely tied to the accelerating focus on environmental, social, and governance (ESG), which is driving sustainable business practices, green mobility initiatives, and the adoption of circular economy models. Organizations are increasingly viewing ESG as essential to long-term resilience, supported by innovations like green AI that help reduce energy use and carbon emissions, even as rising AI-related energy demands renew interest in nuclear power.

The report also highlights that investors see government policy as a critical factor in clean-energy profitability, with about 64% of global energy transition investors citing measures such as carbon taxes as key to investment attractiveness. And despite the sharp drop in ESG inflows in 2023, global ESG assets are still expected to exceed $53 trillion by 2025—nearly one-third of total assets under management.

On the final force, legal and regulatory pressures are expected to intensify in 2025. The KPI Institute’s 2025 Global Trends Brief notes that extending U.S. tax cuts could generate over one million small business jobs annually and boost manufacturing and investment in underserved regions. At the same time, local policies and stricter AI regulations are reshaping how businesses operate, with regulators focusing heavily on cybersecurity, privacy, and national security risks.

Rising data center spending—up nearly 35% in 2024 and expected to grow by another $50 billion in 2025—comes alongside escalating fraud, identity theft, and AI-driven deepfakes, which are anticipated to push U.S. consumer losses past $10 billion per year. Financial crime enforcement is also tightening following the Financial Action Task Force’s updated standards. To keep up, organizations are increasingly adopting AI governance tools, while 76% of small business owners support government efforts that help them integrate new technologies responsibly.

Strategic priorities for organizations

To remain competitive, organizations need to prioritize operational efficiency, talent development, and risk management. The 2025 Global Trends Brief identifies key areas where strategic focus will be essential:

• AI skills and talent: Enhance AI capabilities and retain top talent to meet evolving technological and market demands.
• Supply chain resilience: Diversify suppliers and expand local sourcing to navigate ongoing geopolitical tensions.
• AI risk management: Strengthen controls to safeguard sensitive data and ensure regulatory compliance.
• Automation benefits: Leverage AI to reduce routine administrative tasks, freeing managers to focus on strategic initiatives.
• Employee engagement: Prioritize employee experience and engagement to attract and retain top talent.

Looking ahead, organizations need proactive strategies that combine agility, technology, and sustainability to thrive in a rapidly evolving environment. The 2025 Global Trends Brief key recommendations include:

• Agile performance systems: Implement frameworks that adapt quickly to geopolitical shifts and supply chain disruptions.
• Integrated analytics: Use advanced data platforms to monitor trends and adjust strategies during economic turbulence.
• Digital twin simulations: Model supply networks to test resilience against potential disruptions before they occur.
• Circular economy initiatives: Adopt IoT-enabled resource tracking to align profitability with sustainable practices.
• AI governance boards: Establish cross-functional teams to ensure innovation is balanced with regulatory compliance and workforce readiness.

The 2025 business landscape brings both challenges and opportunities. Organizations that embrace agility, sustainability, and employee engagement will be best positioned to navigate geopolitical, technological, and operational complexities for long-term success.  End the year strong and start 2026 with the right guidance—download the full 2025 Global Trends Brief on the TKI Marketplace.

According to the World Economic Forum’s Future of Jobs Survey, 86% of employers expect artificial intelligence (AI) and information processing technologies to significantly impact their business by 2030. However, realizing this potential faces a major challenge: the shortage of skills needed to support its integration. Nearly half of global executives identify this as the top barrier to adoption, followed by lack of leadership vision and high costs. In response, 77% of employers plan to upskill or reskill their workforce by 2030, while many also aim to hire AI-proficient talent and reorient business models. Yet, alongside opportunity, there is disruption: 41% of organizations expect to reduce staff as AI capabilities evolve. 

Amid the accelerating shift toward AI-driven operations, the Functional Areas Enablement Institute (FAEI)—a research-driven entity within The KPI Institute ecosystem dedicated to enhancing operational efficiency across key functional areas—has developed the Certified AI Enablement Professional course in partnership with The KPI Institute. This course is designed to meet the increasing demand for professionals skilled at applying AI technologies, especially natural language processing (NLP). It empowers them to effectively engage with AI systems, leverage foundation models, and implement AI strategies aligned with organizational goals. By fostering AI literacy and cultural readiness, the course aims to drive sustainable growth in AI-enabled enterprises. 

The Certified AI Enablement Professional course stands apart from other AI training programs by leveraging FAEI’s proprietary AI Enablement Framework, which offers a systematic approach that guides organizations from early-stage readiness to full integration across the business. The framework covers critical components such as the strategy roadmap, governance, performance metrics and analytics, maintenance mechanisms, and capacity building. At its core, this course supports the alignment of technology with goals, resources, and talent. This approach allows businesses to optimize AI applications, navigate potential challenges, and deliver greater value, all with the goal of driving cost savings through higher efficiency and productivity. 

Offered by maentae, a premier provider of transformative learning experiences, the Certified AI Enablement Professional course arms participants with practical knowledge in areas such as NLP, prompt engineering, and AI deployment, complemented by access to handbooks, templates, and implementation toolkits. The course’s modular structure spans 10 agendas, from fundamentals to advanced practices, and is delivered through a flexible three-stage learning process: pre-course preparation, in-person or online training, and post-course application. For more information, visit these links: Live- Online: Certified AI Enablement Professional and Face-to-Face: Certified AI Enablement Professional.

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Editor’s Note: This article was first published in the News section of Performance Magazine Issue No. 33, 2025 – The AI Edition. To explore more AI-focused insights, download the free digital copy of the magazine via the TKI Marketplace. A print edition is also available on Amazon, subject to standard printing and shipping fees.

The AI Edition of Performance Magazine – Print Edition takes on a challenge many professionals face but rarely stop to question: when we talk about artificial intelligence (AI), are we even speaking the same language? 

Across the issue, readers will find practical pieces focused on specific use cases, business-relevant applications, and emerging challenges. From machine learning basics and prompt engineering techniques to risks in AI adoption and the global regulatory landscape, the edition focuses on how professionals can work with AI in clear, grounded ways.

This approach reflects a core idea explored by the edition’s guest editor, Islam Salahuddin—a former data consultant and facilitator at Systaems with ongoing studies in AI. In “The Problem of AI Is a Problem of Language,” he argues that confusion about AI begins before anyone starts using a tool. He writes that while the field covers everything from robotics and autonomous systems to generative models and chatbots, many professionals speak about AI as if it’s a single thing. This creates misunderstandings that ripple through strategy discussions, tool selection, and expectations around performance.

Salahuddin outlines three areas where the confusion takes root: definition, taxonomy, and perception. He describes how researchers often try to sort these challenges out through frameworks and classification systems, but these rarely reach business audiences. As a result, terms like machine learning or deep learning either get used interchangeably or misunderstood entirely. 

Part of the problem, Salahuddin writes, lies in how quickly AI references shift. A few years ago, people talked about AI in the context of robots or smart devices. Now, many mean tools like ChatGPT, even though these represent only part of the broader field. Rather than offer a fixed interpretation of AI, the essay encourages business professionals to recognize how their own assumptions shape their understanding.

Where Technical Expertise Meets Language

Salahuddin’s piece sets the tone for the rest of the edition—not just in content, but in its call for clarity and critical thinking. That perspective emerges not only from technical expertise but also from his interest in how ideas are framed and understood. He approaches AI as someone attuned to the role of language in guiding perception, decisions, and strategy.

Drawing on over a decade of experience across data analytics, information design, and communication, he brings a thoughtful approach to how organizations use data for strategy and impact. He is also certified as a data analyst and trainer by Microsoft. His work spans the public and private sectors—from performance management solutions to research and training—always focused on making analytics more accessible and relevant.

Alongside his technical work, he remains engaged in writing and creative projects, often exploring the connections between data, storytelling, and culture. He believes that bridging disciplines—whether through visualization or language—is key to understanding today’s complex challenges.

Read his full essay in Performance Magazine – Print Edition, Issue No. 33 (The AI Edition), now available as a free digital download via the TKI Marketplace. Print copies can also be ordered through Amazon (standard printing and shipping fees apply).

Performance Magazine has released its newest print issue, and this time, it focuses on one of the most defining changes in today’s workplace: AI in strategy and performance. Performance Magazine Issue – Print Edition, Issue No. 33 (The AI Edition) explores how artificial intelligence is influencing not just tools and workflows but the deeper layers of how organizations plan, execute, and evaluate performance.

The cover story features Cassie Kozyrkov, Google’s first ever chief decision scientist. Rather than echoing the dominant automation narrative, Kozyrkov calls for a return to disciplined thinking. Her reflections point to a core concern in strategy work today: how to make better decisions, faster, with the support of AI—not at the cost of human oversight. She draws attention to the difference between replacing judgment and reinforcing it, which frames much of what the rest of the edition explores.

Among the features is a practical explainer on how machine learning works, covering its core structure, main types, and underlying learning processes. Another article offers historical context that traces how AI has developed over time, helping distinguish durable progress from hype.

One article takes a closer look at the role of AI in strategy and performance, showing how machine learning models are being used to assess current conditions, simulate future outcomes, and support strategic direction. It also explores how AI contributes to performance management by helping set more accurate targets, cascade KPIs across levels, and monitor progress with predictive insights.

Several articles explore how AI is embedded in the daily flow of work. These cover its integration into familiar tools and platforms, the rise of AI agents, and the increasing importance of prompt engineering as a technical skill. On the governance front, readers will find a scan of AI regulatory developments around the world, focusing on how companies are adjusting policies and compliance mechanisms to match legal expectations.

The Interviews section brings in a mix of technical, academic, and legal perspectives. Alongside Kozyrkov are voices like Tarry Singh, Professor J. Mark Bishop, Frank Naussbaum, and Dr. Jon Truby, who discuss the operational, ethical, and structural implications of adopting AI at scale.

Closing the edition is a contribution from guest editor Islam Salahuddin, a data consultant and facilitator at Systaems. He is certified as a data analyst and trainer by Microsoft and is currently pursuing a master’s degree in AI. In his essay, he explores how much of the confusion around AI stems from language itself. Even the term “AI” can mean entirely different things depending on background or experience. This confusion, he argues, is especially present in business conversations, where abstract terms often blur rather than clarify. 

Performance Magazine Issue – Print Edition, Issue No. 33 (The AI Edition) is now available as a free digital download via the TKI Marketplace. Print copies can be ordered through Amazon, with standard printing and shipping fees applied.

Just as individuals must adapt to changes in their personal lives, such as shifting priorities and new tools, organizations must also respond to broader shifts in the environment in which they operate. Today, sociocultural changes and technological advancements are playing a pivotal role in redefining how strategy is crafted and how performance is managed. 

The 2025 Global Trends Brief, by The KPI Institute, emerges as a vital resource, offering comprehensive insights into the forces set to shape the strategic direction of organizations worldwide. Drawing from an extensive analysis of over 100 industry publications, expert commentaries, and in-depth studies, the report highlights the primary drivers of change across six critical dimensions: Geopolitical, Economic, Socio-Cultural, Environmental, Technological, and Legal.

In our previous article, we explored the Geopolitical and Economic drivers, where we highlighted how global power shifts, inflation, and supply chain instability are influencing organizational strategy, risk management, and performance.

In this follow-up, we now explore the Sociocultural and Technological trends that are redefining the workforce and transforming business operations. From artificial intelligence (AI) integration and cybersecurity to shifting workplace values and talent models, these forces are reshaping how organizations operate and compete in a modern business world.

Sociocultural advancements reshape workforce strategies

According to the 2025 Global Trends Brief, organizations are no longer relying solely on traditional methods to attract and retain talent. Instead, skills-first hiring has gained momentum, signaling a shift away from degree-based qualifications. Companies are placing higher value on practical capabilities, real-world experience, and adaptability.

Meanwhile, employee experience, mental health, and professional development have emerged as critical priorities. With hybrid work environments now the norm, businesses are addressing the challenges of talent shortages, workforce engagement, and well-being. In this evolving landscape, AI integration is also redefining talent strategies, enabling more targeted hiring, upskilling programs, and reduced turnover.

Notably, women-led businesses are expected to lead innovation across high-growth sectors such as healthcare and technology, signaling a sociocultural shift toward more inclusive and resilient leadership models.

However, as older generations retire in large numbers, many industries are facing a looming talent gap. This trend is pushing organizations to invest in internal development, cross-training, and more flexible working models to future-proof their workforce.

Technology continues to disrupt and empower

On the technological front, AI’s evolving ecosystem is transforming business operations across industries. One major development is the rapid advancement of DeepSeek, which has raised national security concerns in the U.S., emphasizing the growing complexity of international AI competition.

At the organizational level, cybersecurity has become a top priority. As autonomous and agentic AI systems begin to carry out tasks with minimal human input, ensuring safe and ethical deployment is paramount. Businesses are now exploring how these AI agents can handle routine tasks, enabling employees to focus on high-value work.

Generative AI (GenAI) is also set to revolutionize operations, particularly in supply chain management, by automating decision-making, improving forecasting accuracy, and streamlining logistics. Meanwhile, the convergence of quantum computing and AI is opening new frontiers in data processing and problem-solving, with implications for industries ranging from pharmaceuticals to finance.

After years of software dominance, hardware innovation is staging a comeback. From advanced chips designed for AI workloads to energy-efficient processors, the renewed focus on physical infrastructure is enabling AI systems to operate at higher speeds and lower costs.

As sociocultural and technological trends continue to evolve, they’re not just shaping operations. But they are also redefining the core of strategy, leadership, and performance. Explore the full insights, including key figures, referenced studies, and detailed analysis on how each component impacts strategy and performance management practices. Download the full 2025 Global Trends Brief, available on the TKI Marketplace. Stay tuned for our upcoming articles as we unpack the remaining two drivers in detail.

The integration of artificial intelligence (AI) has emerged as a transformative force in the public sector, reshaping interactions between citizens and their governments. Across various touchpoints, from online information access to in-person services, AI enhances the citizen journey by analyzing data to deliver personalized services tailored to individual needs. AI-powered chatbots provide instant responses, while predictive analytics anticipate citizen preferences and streamline processes.

Moreover, AI drives digitalization efforts by automating routine tasks, facilitating data interoperability, and identifying patterns in citizen behavior. This paves the way for future readiness by enabling agile decision-making, proactive issue identification, and the adoption of innovative service delivery models. As a result, AI transforms governance frameworks, fosters data-driven decision-making, and enhances transparency and trust in government processes.

Global frontrunners in today’s dynamic landscape

The pursuit of strategic excellence in performance management continues to be a cornerstone for nations striving to deliver exceptional public services. Certain countries have emerged as frontrunners in this context, setting a high bar for strategic planning and execution. Most recently, Finland, Denmark, and Singapore, each representing diverse regions and cultures, have distinguished themselves as global leaders in government service provision, showcasing remarkable achievements across critical dimensions of public service performance.

AI-related initiatives

According to The KPI Institute’s (TKI) newest release, the 2023 Government Services Index, Finland, the ultimate global leader in public services provision, prioritizes citizen-centric design in online services, leveraging AI algorithms to personalize recommendations and enhance the user experience. Robust data security and privacy measures ensure that citizens’ personal information is handled securely, fostering trust in digital government initiatives. Through initiatives like the Place to Experiment and open government data policies, Finland promotes innovation and citizen engagement, contributing to continuous improvement in digital services and overall citizen experience.

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This excerpt is from the cover story of Performance Magazine Issue No. 30, 2024 – Government Edition titled “Lessons from global leaders: how AI is changing public service delivery.” Read the full article by downloading a free digital copy of the magazine via TKI Marketplace. You can also get your hands on the printed version by purchasing a copy on Amazon.