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Predictions 2025: The year ahead for digital transformation

Stagwell's Sunil John shares seven digital transformative trends set to redefine the communications industry in 2025.

Asdaa Sunil John

After decades of shaping the PR landscape in the Middle East and a career spent crafting and rewriting communications playbooks, one truth stands out: change is the only certainty.

We are living through the most exciting time in communications history as we stand at the intersection where artificial intelligence meets human creativity, where digital transformation is the only way forward. The reality is stark: those who have not yet embraced digitalisation risk being left behind entirely.

In the whirlwind of AI innovation and digital transformation, one core belief anchors me: the enduring strength of human creativity and intellect. That is why I believe that any digital transformation story is not about choosing between human intelligence and artificial intelligence; it is about integrating both to create something greater than the sum of its parts. 

After observing and contributing to key shifts in communication strategies over the years, I firmly believe that 2025 will mark a pivotal year for digital transformation in our region and its communications landscape.

The Middle East, with its ambitious vision and tech-savvy youth, is no longer playing catch-up; it is increasingly setting the pace. We saw this in action recently at the 1 Billion Followers Summit in Dubai, a global benchmark in shaping the future of the content economy. With more than 15,000 content creators and influencers from across the world participating, it was a powerful demonstration of our region’s growing influence in the digital realm.

As the region continues to lead the charge, these seven transformative trends in digital transformation are set to redefine the communications industry this year.

1. The rise of hyper-personalisation: We’re moving beyond basic personalisation into an era of hyper-personalised experiences. Just as Coca-Cola partnered with Google to create individualised FIFA World Cup Qatar 2022 ads, we will see AI-powered content creation that speaks to audiences of one, not millions. The key difference? Scale and impact that were unimaginable even a year ago.

2. Advancing Arabic language AI: 2025 will be the year when Arabic language AI can finally mature. With substantial investments from the UAE and Saudi Arabia in large language models (LLMs) trained on the nuances of the Arabic language, we could achieve a breakthrough in handling the region’s myriad dialects. This is crucial because current sentiment engines used for media monitoring and social listening often fail to accurately interpret Arabic’s linguistic and cultural nuances. 

3. Smart cities and their impact: Across the region, we’re seeing unprecedented investment in smart city infrastructure. According to recent data from the International Data Corporation (IDC), Middle East and Africa spending on smart city technologies is expected to reach $2.7bn this year. 

4. Mobile-first everything: With the GCC region set to have the world’s highest 5G penetration at 93 per cent by 2030, mobile-first strategies will be at the heart of communications. With more and more transactions taking place via mobile phones, brands will focus on mobile-first marketing strategies. AI will have a role to play in creating fast-loading and visually appealing content tailored for mobile users, while organisations will benefit from AI-powered sales forecasting and workflow-automation.

5. Pivoting from millennials to Gen Alpha: Many millennials and Gen Zs – the ‘iPad Kids’ – are part of the workforce and their influence on digital transformation is significant. In 2025, digital content tailored to their interests will explode, and their preference for visual, interactive and personalised content will reshape how brands communicate. This will have the most pronounced impact in the Middle East region, one of the world’s youngest, with more than 200 million people below the age of 30.

6. Predictive PR: AI can transform how we handle crisis communications and stakeholder engagement. Similar to the adoption of ‘digital twins’ in other sectors, predictive analytics will enable PR professionals to foresee potential issues, while AI-driven content will allow rapid and effective responses to emerging challenges. 

7. The virtual influencer revolution: The UAE’s first virtual influencer, launched in early 2024, was just the beginning. AI-generated personalities will proliferate, but their success will depend on their perceived authenticity and ability to resonate with audiences.

But here’s the crucial point: while these technological advances are impressive, they’re just tools, not solutions. The real transformation happens when human creativity meets digital capability.

Whether you’re a PR professional, marketer, or business leader, your success hinges on blending human insight with digital innovation. In an era when AI can both inspire and mislead, wisdom in its application will be your greatest asset. 

By Sunil John, Senior Advisor – MENA, Stagwell.