According to the HLB 2025 Survey of Business Leaders – a research report conducted by global advisory and accounting network HLB to bring C-suite perspectives on current business challenges to life – 44% of highly profitable companies are ahead on the AI maturity curve. A conceptual framework designed to indicate how well organisations have progressed in terms of their ability to adopt and make beneficial use of artificial intelligence, this headline statistic seems to suggest that tech is the way forward.
Despite the AI-readiness of the 1,200 leaders surveyed, however, more in-depth insights from the survey show that tech is far from the only key to unlocking long-term efficiency, innovation and growth.
The AI edge – but not in isolation
Of the thousands of business leaders surveyed by HLB for this latest report, 69% identified AI as the most important technology for the next five years – with 71% already using predictive analytics to track future trends. Indeed, AI-powered tools are enabling rapid prototyping, streamlined operations and better, more informed decisions. However, the most successful organisations are also realising that technology alone is not a silver bullet for success.
Whilst AI and automation are propelling productivity, leaders need to balance technological advancements with human capital investment. Without a strong, people-centric strategy that prioritises things like culture, training and development, even the most cutting-edge organisations risk being undermined by talent shortages and a disengaged workforce.
Looking inwards
Despite economic uncertainties in the market at present, business confidence remains high, with 85% of leaders optimistic about growth and 46% expecting acceleration in performance in 2025. Yet, at a time when borrowing costs are higher than usual and capital is harder to access, there are still plenty of factors outside of our control. So, where does this optimism come from? What other factors are inspiring growth confidence in an otherwise volatile climate?
Beyond tech, which is of course making a marked difference in the ability to process large volumes of data and repetitive tasks quickly, the key lies in looking inwards at complementary factors such as operations and the culture of the organisation. These are all areas in need of continuous work, which are nonetheless being neglected in many cases. Whilst AI is being used to improve business agility in 55% of cases, for example, just 37% of highly profitable companies consider their operating models to be optimal. More alarmingly still, 63% of leaders feel their workforce is disengaged, with a further 65% recognising that their organisations lack effective innovation practices. Without addressing these internal inefficiencies, technology investments will not sustain growth.
Investing in talent
With AI automating many traditional middle-management roles, businesses face a future workforce that’s hollowed out in the middle, leaving behind it an intensifying demand for highly skilled talent. This explains why the importance of investing in people has surged by 10% already this year, according to the HLB survey, with 51% of leaders now prioritising workforce development alongside technology.
At present, 90% of businesses around the world anticipate IT skills shortages until at least 2026, owing to the pressing need for the workforce to keep up with the demands of the new AI-driven market. According to LinkedIn research, 25% of the skills required today have changed – and by 2030, a further 65% of the skills used by our current workers will need to be updated. Without continuous investment in upskilling and development, then, companies risk losing their AI-driven competitive edge to talent shortfalls and high staff attrition.
To mitigate these risks, leaders are beginning to prioritise training and development (55%), workplace culture (47%), performance management (44%) and internal communications (44%), with an additional 63% of profit accelerators planning to increase staff remuneration and rewards in 2025, according to the HLB report. This highlights a new kind of competition – not in the AI tech race but in creating a work environment that people will want to be part of. Without acting to retain and motivate top talent, the deployment of advanced technology loses its meaning in growth strategy.
Striking the balance
The fact that empowered teams outperform their peers is nothing new. A culture of continuous learning and adaptability not only allows firms to capitalise on emerging opportunities but also ensures that employees remain satisfied and engaged, feeling less threatened by ongoing disruptions. Indeed, with disruptive technologies emerging every day and AI set to transform the world as we know it, the best leaders will use ongoing training to signal safety to their employees, allowing them to grow accustomed to continuous change and innovation rather than shy away from it – allowing those organisations to hold onto sustained growth by embracing new processes and pushing out new products and ideas.
By strategically integrating AI with human development, sustainable, long-term growth can be achieved even in an unstable market. The best leaders are those who recognise the place of each aspect of investment within their strategy, using AI for things like predictive analytics and market insights, whilst also breaking down communication barriers between teams and encouraging more in-person collaboration, equipping their workforce with both the tech-based and skills-based tools they need for the organisation to thrive.
Technology alone won’t save business – but people will
Ultimately, technology is an enabler rather than a standalone solution. AI, automation and predictive analytics are undeniably changing industries, but without strong investment in people to back this up, firms risk falling into the trap of short-term gains in efficiency without a long-term future.
The most successful businesses – experiencing profit growth of between 5% and 10% – are the ones achieving equilibrium between investments in tech and the workforce. Leaders of these organisations do more than chase the latest digital tools, ensuring that these tools actually empower their people. Following suit will allow you to future-proof your business, allowing innovation, productivity and profitability to fuel one another.
