Digital Transformation: Tech Investments for 2025

Digital transformation in 2025 will be a race between leaders and laggards. Let’s break down how AI, talent, and ROI-driven strategies will define who wins.

by Leon Ginsburg, CEO at Sphere

06 Feb 2025

The tech landscape for 2025 is brimming with opportunities — but only for those prepared to seize them. For example, the World Economic Forum’s GovTech Network has identified a $10 trillion opportunity as governments come under increasing pressure to modernize their systems and meet the needs of an increasingly digital world. Some other insightful numbers reveal that 75% of digital leaders plan to increase tech spending. According to this report, the critical problem is divides forming between digital transformation leaders and laggards. With 90% of organizations admitting to a lack of digital transformation expertise, the stakes have never been higher.

Bridging the Digital Divide: Key Insights

As organizations navigate the demands of modernization, a clear trend emerges: digital leaders are accelerating their investments, while those lagging behind face widening gaps in capabilities and returns. A significant factor contributing to this divide is the shortage of skilled talent. Notably, AI and machine learning skills represent the most critical capability gap. Alarmingly, only 9% of organizations believe their current talent base is sufficient to meet expectations for 2025. 

“Companies are leveraging AI to personalize products and services and bring them closer to their customers. The emergence of agentic AI solutions is accelerating decision-making, and as competitive pressures mount, speed-to-market will inevitably rise in priority for more organizations.” – says Leon Ginsburg, CEO at Sphere. 

To bridge this digital divide, organizations must invest in upskilling their workforce, particularly in AI/ML competencies, and foster a culture of continuous learning. Embracing digital transformation is not merely an option but a necessity to remain competitive in the evolving market landscape.

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Tackling Complex Environments and Siloed Mindsets

Perhaps the biggest obstacle for companies isn’t a lack of funding or technology — it’s internal friction. New, complex environments are the most significant challenge stalling transformation. Breaking down silos while managing technical complexity requires strategic leadership. Sphere emphasizes the importance of continuous feedback and collaboration across departments, saying:

“Strong leadership is critical. Prioritizing feedback loops between internal teams and customers ensures that digital transformation doesn’t just remain an IT initiative but becomes a company-wide cultural shift.” – continue Mr Ginzburg. 

While GenAI-powered tools can address technical complexity, the human element cannot be ignored. Organizational design and refinement are necessary to prevent tribalism and fragmentation within teams.

Investments That Deliver Strongest Returns

We think that the highest returns come from automating and modernizing legacy systems — an area often bogged down by inefficiencies. Most digital transformation and AI investments focus on replacing labor-intensive legacy processes. Whether it’s automating customer support, streamlining code migrations, or optimizing document reviews, the goal is the same: drive productivity and cost savings.

This productivity focus spans both the public and private sectors, signaling a global shift toward using technology to fuel economic growth.

As organizations navigate the evolving digital landscape, several key trends have emerged in 2025:

  1. Agentic AI
    Agentic AI refers to systems capable of autonomous decision-making within predefined parameters. This technology enhances efficiency and innovation by allowing intelligent systems to operate, learn, and evolve independently. 
  2. Spatial Computing
    Spatial computing integrates augmented reality, virtual reality, and mixed reality to enhance interactions between the physical and digital worlds. This integration streamlines workflows and enhances collaboration, significantly increasing organizational effectiveness. 
  3. Energy-Efficient Computing
    With growing concerns over the environmental impact of data centers and AI workloads, energy-efficient computing has become instrumental. It focuses on reducing energy consumption while maintaining or improving computational performance, particularly for compute-intensive applications like AI training and simulation. 

Measuring the Impact: Metrics That Matter

In evaluating continuous learning initiatives and technological advancements, Return on Investment (ROI) remains a critical metric. Organizations must prioritize solutions that not only incorporate cutting-edge technology but also deliver measurable ROI. This approach ensures that investments in new technologies translate into tangible business value. 

To effectively measure ROI, it’s essential to align technology investments with high-level strategic objectives. This alignment ensures that the adoption of new technologies contributes directly to the organization’s goals, facilitating meaningful evaluations of their impact. 

Moreover, organizations should focus on the swift adoption and scaling of new technologies. Historical examples demonstrate that rapid implementation can lead to significant competitive advantages. In the modern context, quickly embracing and scaling technological solutions is crucial for staying ahead in the market. 

By emphasizing ROI and ensuring that technological solutions are both innovative and aligned with strategic objectives, organizations can maximize the value derived from their investments. However, to fully achieve the advantage, we suggest to focus on combination of metrics. Additionally, to clean business, organizations should evaluate: 

  1. Knowledge Retention and Application

Assessing how well employees retain and apply new knowledge is crucial. This can be measured through post-training assessments and observing the practical application of skills in the workplace. High retention and effective application indicate successful learning programs. 

  1. Time to Competency

Evaluating the duration it takes for employees to reach proficiency after undergoing training provides insights into the efficiency of learning initiatives. Shorter times to competency suggest that training programs are effective and well-structured. 

  1. Employee Engagement in Learning

Monitoring participation rates in training sessions and the level of interaction with learning materials can reveal employee engagement. High engagement often correlates with better learning outcomes and indicates a positive reception to continuous learning efforts. 

  1. Behavioral Changes Post-Training

Observing changes in employee behavior following training sessions can provide qualitative data on the effectiveness of learning programs. Positive behavioral changes, such as increased collaboration or improved problem-solving skills, reflect successful knowledge transfer. 

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Conclusion: The Road Ahead

We see a clear picture: the path to digital success requires both strategic investments and cultural transformation. Digital leaders are doubling down on tech spending, but their confidence in ROI stems from more than just the tools they implement—it’s rooted in their ability to adapt, learn, and foster collaboration across their organizations.

As GenAI and other emerging technologies continue to evolve, the companies that stay agile, foster continuous learning, and break down organizational silos will be the ones that thrive. For laggards, the message is clear: without addressing talent shortages and cultural inertia, the gap between leaders and followers will only grow wider.

To successfully navigate the digital transformation landscape in 2025, organizations should consider the following strategies:

  1. AI-Ready Employees
    Investing in training programs to develop AI-ready employees is crucial. This approach ensures that the workforce can effectively leverage AI technologies, driving innovation and maintaining competitiveness. 
  2. Enhance Data Governance
    Improving data governance practices is essential for managing the vast amounts of data generated in digital operations. Effective data governance ensures data quality, security, and compliance, facilitating informed decision-making. 
  3. Invest in Advanced Cybersecurity Measures
    As digital integration increases, so do security risks. Implementing advanced cybersecurity measures protects sensitive data and maintains customer trust, which are vital for successful digital transformation. 

Frequently Asked Questions

Digital transformation is no longer optional—it’s the backbone of remaining competitive. With rapidly evolving AI, machine learning, and other emerging technologies, companies that delay modernization risk falling behind. Digital transformation enhances operational efficiency, innovation, customer satisfaction, and overall business agility.

  • Talent shortages: Especially in AI/ML and data science fields, leading to gaps in technical execution.
  • Siloed departments: Lack of collaboration across teams can stall progress.
  • Legacy systems: Older systems often prevent seamless tech integration.
  • Cultural resistance: Without buy-in from leadership and staff, transformation efforts can stall.

ROI can be evaluated using key metrics such as:

  • Operational efficiency gains: Time and cost savings from automating processes.
  • Increased revenue: From enhanced customer experiences and faster product delivery.
  • Employee productivity: Improvements in workforce efficiency through upskilling and reskilling.
  • Adoption rates: How quickly and effectively new technologies are integrated into workflows.

efficiency, create innovative products, and deliver tailored customer experiences. GenAI, spatial computing, and agentic AI are examples of technologies revolutionizing operations by allowing intelligent systems to act and learn independently.

  • Upskilling current employees: Invest in ongoing training programs to develop internal expertise.
  • External partnerships: Collaborate with AI experts or consulting firms like Sphere to bridge short-term gaps.
  • Strategic hiring: Focus recruitment efforts on high-impact roles.
  • Knowledge-sharing initiatives: Create internal mentorship programs to spread AI knowledge across teams.