Our 2025 Survey of Business Leaders data shows that with cautious optimism and a commitment to innovation, Business Services leaders are preparing for a year of transformation—powered by AI and driven by a sharpened focus on operational efficiency and a renewed emphasis on their people. Here's what the findings reveal about the road ahead.
In today's volatile business environment, disruption has become the norm. However, after years of navigating constant upheaval, the sector's businesses have developed advanced risk resilience.
This year, economic uncertainty stands out as the biggest threat, with 79% of leaders identifying it as a key concern—mirroring the worries shared by their global peers across other industries. Right at its heels is cyber risk, worrying 76% of firms, closely followed by geopolitical risks (69%). While cybersecurity represents a challenge, it also presents an opportunity for advisory firms. Many firms are ramping up investments in cybersecurity and IT infrastructure, with 48% increasing their spending in this area.
Notably, the sector’s leaders report higher levels of concern over tax risks and access to talent compared to other respondents, with 63% and 59% of leaders identifying these as critical challenges.
Despite mounting pressures that are growing in complexity and urgency, business leaders remain optimistic about their companies’ potential. However, their outlook on global growth is more nuanced.
According to the survey, almost half of respondents (45%) expect global growth to increase in 2025—a slight rise from last year. However, a quarter anticipates a decline, indicating a division in sentiment. Overall, however, the outlook is more optimistic compared to last year when only about a third expected global economic growth to increase, while another third predicted a decline.
Despite these mixed views, confidence in company-specific growth remains strong. An impressive 82% of business leaders expressed confidence in their firms' ability to grow revenues in the next 12 months. This optimism is particularly evident in regions such as India, Indonesia, the Middle East, and parts of South America.
Improving operational efficiency has emerged as the number one priority for Business Services firms in 2025. At the same time, over a third of firms in the sample consider operational effectiveness a weakness that needs to be addressed in 2025.
In response to these pressing concerns, nearly half of the firms surveyed plan to refine their organisational structures while focussing on improving agility and streamlining processes.
Only 14% of respondents believe their operating models run at full potential. Alarmingly, 81% admit their models require improvement.
AI plays a key role in these efforts. A quarter of leaders are utilising AI to redesign organisational structures, while over half are deploying it to improve agility and remove redundancies.
From automating workflows to conducting complex data analysis, firms are unlocking efficiencies at every level. A European CEO highlighted how AI is helping "simplify work processes and improve efficiency," while a CFO pointed to its application in "market basket analysis."
While improving operations is the top priority, adopting cutting-edge technology comes a close second. This priority aligns with their drive to boost efficiency and refine their operating model.
Business Services leaders are embracing AI at an increasing pace, with 84% identifying it as the most critical technology for their future success over the next five years.
AI adoption has accelerated over the past year, with 43% of firms either eager to explore its potential, dedicating time to assess how AI can enhance their operations, or already leveraging AI extensively to gain a competitive edge. This figure marks a significant jump from 28% the previous year.
Businesses are using AI for various applications, including sales forecasting, customer analytics, and content generation. One North American consulting firm reported leveraging generative AI to enhance content creation, using proprietary knowledge repositories to produce tailored solutions for clients. Meanwhile, in the Asia-Pacific region, firms harness AI for tasks ranging from drawing and query management to real-time market analysis.
Cloud computing is another critical focus, with over half of leaders emphasising its importance for operational efficiency.
Investments in automation, digital transformation, and emerging technologies are similarly on the rise as firms aim to stay ahead in an increasingly tech-driven market.
As one executive in North America notes, "The integration of cloud-based tools has created automated workflows that streamline operations." Legal firms, too, are leveraging AI for tasks like case law research and transcript evaluation, illustrating the diverse ways technology is reshaping the sector.
Firms in the sector are turning to both their people and technology to overcome barriers to innovation. AI is being deployed to collect and analyse customer behavioural data, encourage cross-functional collaboration, and even modify pricing strategies in real time.
One CEO in Africa highlighted AI's ability to "instantly modify prices in response to competition and demand," while another COO in the same region described using AI to tailor product availability based on customer interest.
Innovation remains challenging for Business Services firms, with more than three-quarters (77%) of leaders describing their efforts as inconsistent or difficult to sustain.
However, the sector is aware that innovation is more than just utilising a novel technology—it also involves fostering a culture of creativity and collaboration. High-performing firms, in particular, prioritise training, engagement, and wellness initiatives to empower their workforce.
For the sector's most profitable firms, people remain the cornerstone of success. Among these top-performers— with profit margins growing at a rate above 5%—investing in talent takes precedence over operational efficiency.
Interestingly, these high-margin companies are more AI-enabled and talent-centric than their peers. They are not only focusing on recruitment but also creating environments that encourage continuous learning and employee well-being. Half of these firms use AI to deliver training, while 25% leverage it to boost employee engagement.
Despite these efforts, challenges remain. Only 35% of respondents rate their workforce as highly engaged and productive, with the majority citing missed targets or inconsistent performance as the main concerns. Striking the right balance between technological investment and human capital development appears to be key to sustaining long-term success.
As Business Services firms navigate through 2025, leaders leverage AI to reimagine their operations, empower people, and drive innovation. High-performing firms are setting the standard, demonstrating that a commitment to both technology and talent can yield impressive results. With the right strategies, Business Services firms can transform disruption into opportunity and thrive in an unpredictable global environment.
As businesses confront the challenges ahead, HLB is here to provide the insights and expertise you need to succeed. Let us help guide you through the complexities of today's market and unlock your firm's full potential.
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