Andrew Hyde, Chief Digital & Information Officer at LRQA, shares his top three priorities for digital transformation teams next year.

Business budgets and priorities for 2025 are on the table. Now is the time for businesses to make the case for their digital transformation ambitions. 

Although the race to AI is now at full throttle, many businesses are still grappling with old legacy systems. It’s high time to address these issues, while paying close attention to rapidly evolving regulation and sector specific standards. 

Adoption of AI offers exciting opportunities, but it can feel overwhelming. For businesses looking to take their digital transformation to the next level in 2025, here are the three activities they need to piroritise.

1. Seriously look at AI and what it can do for your processes and your company. 

But, be careful who you partner with. With so many new AI companies out there, it feels a lot like the dotcomboom at the moment.

AI really is the 4th industrial revolution. It almost feels the same as digital did 10-15 years ago when everyone was creating self-service products and services. 

One learning we can take from the early 00s is that businesses must adapt to the latest technologies to remain competitive. 

The challenge that businesses have is: who to turn to? Which AI platforms and service providers have sound foundations? With so many start-ups, it feels a lot like the like dotcom boom. It can be difficult to know which are legitimate and which have good, long-term business plans. 

Thankfully, regulatory bodies have started putting guide rails, controls and protections in place. New standards like ISO/IEC 42001 have been set out for establishing, implementing, maintaining and continually improving an AI management system. 

These standards are still coming out and evolving across sectors. This is why it’s important to do your research and to be aware and informed of the regulatory landscape in the sector where you operate. In the UK, the government has released the AI Regulation Policy Paper. In the US, the Federal Trade Commission (FTC) has advice on automated decision making. For Europe, the EU AI Act is destined to become a global standard like GDPR.

Another challenge is how AI affects cybersecurity. Are you protected against the ever-evolving threats of machine learning as a tool to attack, or deepfake videos impersonating your CFO? Working towards or requesting these standards will give you confidence in the AI partners you chose and the processes you embed into your own operations.

2. Review your legacy platforms, suppliers and skills. 

    Outsourcing isn’t always the best option, think about the right sourcing to ensure that you have the support that you need.
    Before the end of the year, it’s important to ask, when was the last time you reviewed your suppliers? 

    Businesses are used to outsourcing to save money, but we often don’t review these arrangements. The changing global economy means that outsourcing isn’t always the most effective option – costs have gone up significantly in India over the last year, for example. 

    Organisations can make big savings, while improving quality, speed and flexibility, by bringing some services back in house. At LRQA we’ve found the UK a particularly strong market for tech skills. We’ve hired about 100 roles since start of the year and remote working means that we can now draw on talent from across the country.

    Added to this, we still see many companies with dilapidated systems and old platforms hampering their operations. There is now some urgency to move away from these. 

    The risk for digital transformation is that many technical details and old processes are not documented, and often only existing in people’s heads. If you get the migration from these platforms wrong, it can cause problems for your business and your customers. 

    The solution must be a planned and controlled migration, but before you need to reverse engineer these outdated processes, sometimes with the added challenge of the person who designed them having left the business.

    3. Write your digital transformation to do list. 

      Cost and roadmap for 2025 then speak to your investors and/or your board to get these costs approved.

      Digital Transformation is a mixed bag. Some businesses have invested already, some are behind the curve as they’re working with legacy systems and platforms while others have cash constraints. There was a big investment during the pandemic – because it was necessary – but since then it has eased off. 

      Now businesses are in another round of investment, being driven by AI. Smaller companies tend to have less transformation funds, but what people need is often the same – data, self-service and AI to help make decisions.

      If you’re making the case for AI to investors, you need to set out your priorities for staying competitive and protecting your business, but there is also an argument for growth. Once embedded, AI driven processes provide efficiency and are easy to scale.

      Get ready to get ahead

      Digital transformation and the adoption of AI is crucial to gaining the competitive edge and the future success of your business. By setting up your plans for 2025 now, you can make sure you’re ahead of the competition and not left on the sidelines.

      • Digital Strategy

      Related Stories

      We believe in a personal approach

      By working closely with our customers at every step of the way we ensure that we capture the dedication, enthusiasm and passion which has driven change within their organisations and inspire others with motivational real-life stories.