As we move deeper into 2025, UK Chief Data Officers face a rapidly evolving technological landscape where digital transformation's role continues to shift in significant ways. A recent article by Prashanth Southekal in Dataversity highlights this evolution, describing a “paradox of digital transformation” where this established practice “toils in the background as AI developments move front and centre” whilst simultaneously spreading “across more practitioners than ever before” (Southekal, 2025).
For UK CDOs navigating this shifting terrain, understanding the key trends shaping digital transformation is essential for strategic planning. Let's explore five critical trends that should be on every UK CDO's radar this year.
1. AI as the Primary Transformation Driver
The most profound shift in digital transformation is AI's emergence as the dominant force. Southekal observes that “expanding GenAI deployments and newer agentic AI projects will play important roles in reinventing business processes. It will become increasingly difficult to distinguish AI transformation from digital transformation” (Southekal, 2025).
This trend is supported by significant market forecasts, with IDC projecting “digital transformation to grow to a $3.9 trillion market worldwide in 2027 on the strength of AI and generative AI investment” (Southekal, 2025).
What This Means for UK Data Leaders
British organisations must now integrate AI strategy as the central pillar of digital transformation, not as a separate initiative. Focus on building transformation roadmaps with AI capabilities at their core, paying particular attention to UK-specific regulatory requirements around data protection and algorithmic accountability.
2. Digital Transformation as Background Infrastructure
The days of digital transformation as a high-profile initiative appear to be waning. According to Southekal, “business and technology forces have compelled transformation to evolve,” with “C-suite impatience with the speed and cost of initiatives” reducing their size and scope, whilst “emerging AI technologies have captured organisational attention” (Southekal, 2025).
This doesn't diminish digital transformation's importance but rather elevates it to an assumed business function, the foundation upon which innovation is built.
What This Means for UK Data Leaders
British organisations must adapt to digital transformation becoming background infrastructure. Focus on embedding digital capabilities as standard business operations rather than promoting transformation as a concept. Prioritise demonstrating clear ROI aligned with UK business metrics and reporting standards that resonate with British boardrooms.
3. The Rise of Citizen Developers
Perhaps the most significant operational shift is in who leads transformation efforts. Research from MIT Sloan suggests “the responsibility for digital transformation will be diffused across organizations, rather than concentrated in the IT department” (Southekal, 2025).
This democratisation is driven by necessity: “Digital transformation is taking too long, in part because millions of application development, coding, data science, and tech-associated jobs are going unfilled. The only way for companies to fill the void is through greater emphasis on the skill development of their existing staff” (Davenport & Barkin, cited in Southekal, 2025).
Forrester Research projects that by next year, “citizen developers outside of the IT department will create 30% of 'GenAI-infused automation apps” (Southekal, 2025).
What This Means for UK Data Leaders
Post-Brexit talent challenges make citizen development especially important in the UK context. Focus on creating secure environments where domain experts can build solutions without compromising data governance. Establish clear guardrails that protect sensitive data whilst encouraging innovation, particularly in sectors where the UK maintains a competitive advantage, such as financial services.
4. Maturation of Digital Transformation
While digital transformation continues to grow as a market, 2025 brings clear signs of maturation. According to CompTIA, their number one trend to watch is “a higher bar for digital transformation” with organisations “hitting the pause button to evaluate the success of past initiatives” (Southekal, 2025).
This scrutiny reflects a more sophisticated approach to digital investments, with increased focus on “real benefits” of prior investments and adjustments to procurement and project evaluation processes (Southekal, 2025).
What This Means for UK Data Leaders
The pragmatic approach typical of British business culture aligns well with this trend towards evaluation and maturation. Prepare for increased scrutiny of existing investments before securing new funding. Implement periodic value realisation reviews aligned with British financial reporting cycles, with particular attention to public sector value-for-money requirements specific to UK government frameworks.
5. Cloud Migration Remains Critical
Despite AI dominance in conversations, cloud migration continues to be a fundamental transformation focus. According to Wipro's research, “As AI models have scaled up, cloud has become a necessity for 9 out of 10 enterprises” with scalability identified as the primary benefit (Southekal, 2025).
What This Means for UK Data Leaders
Data sovereignty and compliance present unique challenges for UK cloud adoption post-Brexit. Develop cloud strategies that balance UK-specific regulatory requirements whilst enabling AI innovation at scale. Address the SAP ERP maintenance deadline in 2027, which creates particular urgency for British enterprises with legacy systems. Consider implementing cloud assessment frameworks that incorporate UK data protection standards, particularly for regulated sectors like healthcare and financial services.
Preparing for the Future
These trends offer both challenges and opportunities for UK-based CDOs. The UK government's AI Opportunities Action Plan aligns closely with these global trends, emphasising AI as potentially "the government's single biggest lever" for economic growth.
The Plan's recommended “Scan > Pilot > Scale” methodology offers a pragmatic framework for methodical implementation that balances innovation with risk management. Consider adopting this approach within your organisation to structure your response to these evolving trends.
Perhaps most importantly, recognise that the risks of strategic delay are substantial. As Moore and the UK government's Action Plan both emphasise, underinvesting in digital transformation and AI capabilities poses a greater risk than overinvestment. The most capable AI professionals will increasingly cluster in organisations perceived as leaders, while those who delay may face talent deficits and competitive disadvantages that become increasingly difficult to overcome.
*This blog post references information from "Thinking Like a Data Person: Strategies for Better Decision-Making" by Prashanth Southekal, published in Dataversity on 11 March 2025, contextualised for UK Chief Data Officers.