Top 5 Predictions for 2025

This article is kindly contributed by Brendan Collogan, Director of StudioSpace agency Three Are One. Three Are One is a timely challenge to the traditional agency & consultancy models, with a sharp focus on delivering new growth for its clients. Their team are highly experienced executives with real hands on experience developing new business models and building new ventures for major corporates. They work across sectors and have particularly deep experience in the media & publishing sector.

2024 has been a year I’ll always remember—a year of change, growth and reflection. After leaving Optus in March, I took an extended break for the first time in my career. It was a much-needed opportunity to gain perspective, spend meaningful time with my family, and truly understand the importance of prioritising health and well-being.
During this time, I also had the chance to reflect on my career path and where I could make the greatest impact. Ultimately, I realised that my skills are best applied to tackling varied and complex challenges. This realisation led me to a role that feels like a perfect fit, aligning with my passions and strengths.

The year has been one of highs and lows. Starting a business brought its share of challenges. Yet, it has also been incredibly rewarding, and as we close out the year, I couldn’t be happier with the progress we’ve made and the direction we’re heading.
On the other hand, the tragic loss of Lisa has been heartbreaking, a poignant reminder of life’s fragility and how we should strive to live fully and meaningfully. Her impact on those who knew her will never fade and her legacy will continue to inspire us to embrace life with purpose and gratitude.

As I look to 2025, I feel optimistic about the opportunities that lie ahead. It’s shaping up to be a year where businesses and new ventures can thrive, especially for those who have strategically positioned themselves for growth. The seeds sown this year will begin to bear fruit and I believe there is much to look forward to on both personal and professional fronts.

Here’s to embracing the challenges, celebrating the successes, and making 2025 a year to remember.

1. Improving macroeconomic conditions
Consumer sentiment has remained suppressed for many years, but there is reason to believe that 2025 will see improvements.

Primarily my thesis is based on global liquidity. There are many facets to this of course - significant stimulus in major economies such as China (in particular) and the US, continued reductions in interest rates and a booming equity market will all contribute an improving sentiment and a propensity for consumers to start parting with their money.
The last 3 years have been ‘risk off’ but by mid 2025, we will be firmly heading towards ‘risk on’ as corporates seek to capture their share of growth in an expanding global economy.

In addition to these specific tailwinds, liquidity is in part cyclical and tends to follow a 4-year trend - that trend has just turned a corner. Bring it on.

2. The growth mindset takes ascendency
In 2024, I observed that many corporations remained excessively cautious, displaying a noticeable lack of ambition. While it’s understandable that years of subdued economic conditions and a pervasive sense of exhaustion have left their mark, 2024 was a pivotal moment—an opportunity to shift gears and position for growth. For those organisations that embraced a growth mindset and made strategic investments in prior years, the rewards will now become evident. These forward-thinking businesses have gained a significant competitive edge, outperforming those who remained focused solely on cost-cutting and short-term benefits.

This cautious approach, while perhaps a survival mechanism during turbulent times, has come at a cost for many companies. By prioritising stability over innovation, these organisations missed a window to capitalise on emerging opportunities and position themselves for the economic resurgence we are beginning to see. In contrast, businesses that invested in innovation, talent, and customer-centric strategies are now better equipped to thrive as market conditions evolve. Their ability to anticipate change, adapt quickly, and deliver value has positioned them as leaders in their respective industries.

As we look to 2025, I believe it will be a year of adaptation. With economic conditions shifting and discretionary spending set to rebound, businesses will need to align with changing consumer behaviors and preferences. This resurgence presents a chance to reinvigorate growth strategies, explore untapped markets, and deliver new value to customers. For many, it will be a time of recalibration, as they strive to regain lost momentum and adapt to the opportunities created by this renewed economic activity.

I also believe 2025 will be an exciting and hopeful period for many. After years of restraint and uncertainty, the prospect of renewed energy in the marketplace offers a welcome relief. It will challenge businesses to think creatively, act boldly, and embrace a spirit of optimism. For those ready to rise to the occasion, the coming year promises to be a period of recovery, reinvention, and renewed ambition—a chance to build not just for survival, but for sustainable, long-term success.

3. Agencies will adapt or fade
The secret is out: unless you’re an ASX Top 20 company, the retained agency model no longer aligns with the best interests of most clients. Over the past few years, we’ve seen a clear and growing trend of corporations moving away from traditional agency structures. This shift is largely driven by a need for greater flexibility and access to a broader range of specialised skills, which the conventional retained model struggles to provide.

The business landscape has evolved, and so too have the demands placed on agencies. Companies now face complex and dynamic challenges that require tailored, on-demand solutions rather than the rigid, one-size-fits-all approach that retained models typically offer. This shift has been particularly evident in industries where agility and adaptability are crucial to maintaining a competitive edge.

By stepping away from retained models, corporations gain the ability to tap into diverse expertise as needed, enabling them to respond quickly to changing market conditions, emerging trends, and evolving consumer behaviors. This approach not only ensures better alignment with strategic goals but also fosters more innovative and effective solutions, ultimately driving stronger results.

As this trend continues, it’s clear that businesses are rethinking their relationships with agencies, opting for models that provide greater value, efficiency and creativity. The dissolution of the traditional agency model isn’t a loss; rather, it’s a natural progression toward a more collaborative, dynamic way of working.

4. Cryptocurrencies become mainstream
For many, digital assets have become synonymous with the trends of 2021. People often reminisce about the frenzy around NFTs and the soaring valuations of cryptocurrencies like Bitcoin and Ethereum, dismissing them until recently as a prior fad. However, the reality is that these assets never disappeared; they simply receded from the spotlight as the global narrative shifted toward more immediate concerns. In an era where many are grappling with rising costs, digital assets have understandably taken a backseat in public discourse.

What many fail to recognise is that digital assets, much like other markets, operate in cycles. These cycles, typically spanning four years, are closely tied to liquidity conditions. In high-liquidity environments, when capital is abundant, cryptocurrencies and other digital assets tend to thrive, capturing widespread attention and investment. Conversely, during periods of low liquidity, such as the one we’ve been experiencing recently, their prominence wanes as investors prioritise necessities and safer havens (like gold).

What sets the current cycle apart, however, is the potential for a paradigm shift in how cryptocurrencies are treated at the institutional and governmental levels, particularly in the United States. Unlike previous cycles, where regulatory uncertainty and skepticism created barriers to adoption, we are now seeing signs of a more crypto-friendly environment. There is even speculation about the possibility of a federal Bitcoin reserve, with discussions around incorporating Bitcoin into the federal balance sheet as a partial replacement for cash reserves. This idea, while still in its infancy, signals a significant shift in perception and could pave the way for greater mainstream acceptance of digital assets. This is partly the reason Bitcoin has surged to a $100K (USD) valuation and the worlds 7th largest asset.

As we approach 2025, the landscape for cryptocurrencies could undergo a dramatic transformation. Improved global liquidity conditions, combined with increasing legal and regulatory clarity in the world’s largest economy, may set the stage for a resurgence. For investors and businesses, this presents both opportunities and challenges. Cryptocurrencies could see renewed interest not just as speculative assets but as integral components of financial systems, payment networks, and even government policy frameworks.

With liquidity improving and governments like the U.S. warming up to their potential, 2025 could bring answers. One thing is certain: digital assets are far from “over,” and their story is still unfolding. Whether you’re a skeptic or a believer, they are worth keeping an eye on as the financial and technological landscape continues to evolve.
The implication for corporates is that they will start to consider how cryptocurrencies can strengthen their business using them as ‘stores of value’ against depreciating fiat currencies of as investment vehicles in place of equities.

5. Acceleration of artificial intelligence adoption
Artificial intelligence, much like cryptocurrency, doesn’t care about your opinion of it. Whether people praise it as revolutionary or dismiss it as overhyped, AI continues to evolve at an astonishing pace, unaffected by perceptions. Yet, many still cling to statements like, “It can never replace my skills,” reflecting a widespread reluctance to acknowledge or adapt to its transformative potential. Such sentiments are often rooted in misunderstanding or underestimating the rapid advancements in AI technology and the profound changes it is bringing to industries globally.

While it is true that certain skills and processes remain beyond AI’s capabilities for now, this gap is narrowing quickly. The pace of AI development is accelerating exponentially, driven by advancements in computing power (including Quantum computing), more sophisticated algorithms, and the sheer volume of data being generated and processed. This creates a flywheel effect: as AI adoption becomes more mainstream, the influx of diverse, high-quality data further enhances AI systems, allowing them to learn and perform more effectively. This self-reinforcing cycle of improvement positions AI as a force that will continue to reshape industries in ways we are only beginning to comprehend.

“AI will probably be smarter than any single human next year. By 2029, AI is probably smarter than all humans combined” - Elon Musk, March 2024

Although the initial wave of exponential value creation from AI may have passed, this does not mean the window of opportunity has closed. Businesses that recognise the potential of AI to complement their core competencies can still unlock significant value. Strategic deployment of AI solutions can streamline operations, reduce costs, and, in many cases, improve the quality of products and services.

Furthermore, adopting AI isn’t just about immediate cost savings or operational efficiency; it’s about positioning for long-term competitiveness. Companies that invest in AI today are building a foundation to adapt to future market demands, innovate faster, and deliver superior customer experiences. In contrast, those that delay may find themselves struggling to catch up in an increasingly AI-driven landscape.

As we move forward, businesses that embrace AI as a strategic enabler rather than a threat will be best positioned to thrive. This requires not only adopting the technology but fostering a culture of innovation and continuous learning. By doing so, organisations can remain agile and resilient, seizing opportunities to lead in a world where AI continues to shape the rules of competition. The future is not about resisting AI’s influence but about harnessing it to drive sustainable growth and success.