IAOP Thought Leaders Forecast a Transformative 2025: The Future of Work Lies in Flexibility, AI Innovation, and Sustainable Practices

As we look ahead to 2025, industry leaders at IAOP predict flexibility, advanced technology, and sustainability will not just be buzzwords but essential components for organizational success in a rapidly evolving landscape shaped by shifting workforce dynamics and economic pressures.

Key insights from IAOP’s experts highlight the widespread adoption of AI to revolutionize operational efficiency and tackle critical skills gaps. With a commitment to sustainability gaining momentum, companies are discovering that environmentally responsible practices can bolster profitability.

The hybrid work model is expected to reign supreme, allowing a balance of remote and in-office work that meets the diverse needs of today’s employees. However, a noteworthy trend is emerging: firms are increasingly bringing operations in-house, leveraging AI to enhance control and efficiency – a shift that could redefine industry norms.

Organizations that embrace adaptability, harness technological advancements, and commit to sustainable strategies will be best positioned to thrive in the years to come. The future of work is evolving, and those at the forefront are set to pave the way for a more innovative and responsible business environment.

Positive Outlook on AI

IAOP members predict AI will become a foundational element of business operations, significantly enhancing efficiency and decision-making across various industries. This integration of AI is not just a technological advancement but a promise of a more streamlined and productive work environment.

Chris Zlocki, Colliers Head of Client Experience, Executive Vice President, Occupier Services, Global, predicts that AI will be mainstream, improving daily work activities by up to 66 percent by streamlining processes and utilizing predictive analytics.

“Companies will develop diverse solutions to help employees transition into more mainstream AI solutions,” he said. “Technology advancement is widening the gap between what companies need and what skills employees have.”

Furthermore, Mark Voytek, Chief Advisor Thought Leader, IAOP, points to a shift towards adopting AI agents for complex tasks and the evolution of job roles to manage AI systems, as automation will replace certain functions while creating new opportunities. There will also be a notable pivot from outsourcing to in-house operations, leveraging AI for greater control and operational efficiency.

As businesses increasingly adopt agentic AI – systems that autonomously manage workflows – they will focus on enhancing customer success and refining processes.

“As Generative AI evolves, its most powerful use cases will shift toward everyday life – reshaping how we communicate, learn, and create,” Voytek said. “Look at the progress of social media, how we communicated in the past 10 years, and how we engage today.”

Funding is expected to favor B2B AI initiatives, though the consumer AI market may eventually outpace enterprise AI due to personalized applications.

Predictions Mixed for Outsourcing

Experts project a nuanced outlook for outsourcing in 2025, characterized by an increasing emphasis on strategic partnerships and the integration of advanced technologies.

Martin Woodrow, Colliers President, Enterprise Clients, Occupier Services, Americas, points out that there will be heightened demand for non-core outsourced services as businesses aim to reduce fixed costs and remain agile. However, alongside this trend, there’s a shift toward moving certain services back in-house, such as IT support and customer service, as companies leverage AI and technology to enhance control and efficiency.

Voytek notes that while outsourcing may still play a role, organizations will likely establish Global Capability Centers (GCCs) to centralize operations and consolidate functions, allowing for greater scalability and process improvement. While outsourcing remains relevant, the focus will increasingly be on a hybrid model that balances external support with internal capabilities, driven by technology and changing business needs.

Read on for more details on these predictions:

IAOP Strategic Advisory Board Chairman Maura Hudson, Colliers’ Senior Vice President, Head of Brand, Insights & Innovation Group, shared that Colliers’ experts see a shift towards a more flexible workplace model grounded in cost-effective strategies, robust technology utilization and a pronounced focus on sustainability and responsible manufacturing practices.

Martin Woodrow, Colliers President, Enterprise Clients, Occupier Services, Americas

• Increased demand for occupancy planning – Businesses are looking to determine what types of spaces are being occupied by what types of workers and how often.  Mandates for return to office are still meeting resistance, so understanding what type of space workers are returning to the office to utilize is gaining importance. Once companies understand the types of space that are in demand and used by employees at which locations, they will want to optimize their portfolios accordingly.
• Increased demand for Project Management – This trend will mainly be seen in value engineering the cost of fit-outs. These costs have increased dramatically over the last several years, and occupiers are looking for ways to build new spaces cost-effectively, underscoring the growing need for cost-effective solutions.
• Higher demand for non-core (outsourced) services – Many businesses are shedding fixed costs by reducing non-core staff, leveraging the variable cost of outsourced services.

Chris Zlocki, Colliers Head of Client Experience, Executive Vice President, Occupier Services, Global

• AI becomes mainstream – AI technologies will increasingly find their way into the hands of many employees to enable more efficient processes and reduce redundancy, use of predictive analytics to anticipate potential issues faster, help with decision-making, and enhance service quality to customers. It will make work easier and simplify processes. Applications will become increasingly available to help employees improve their daily productivity.  According to the Norman Nielsen Group, AI is predicted to improve daily work activity by up to 66 percent.
• AI talent gap solutions emerge - According to McKinsey & Co. and ADP, 57 percent of employers are seeking to close their generative artificial intelligence skills gaps through targeted upskilling. Companies will develop diverse solutions to help employees transition into more mainstream AI solutions. Technology advancement is widening the gap between what companies need and what skills employees have. Ways to overcome the skills gap are to upskill your employees, increase your focus on analytics in your recruiting, leverage outsourcing providers, and target newly emerging labor pools from universities or the open market.
• Sustainability becomes core to driving business value strategies – Harvard Business Review recently published that for most companies, a key factor in focusing their sustainability strategy is answering the question, “What issues relating to sustainability impact our bottom line?” This approach identifies win-wins that justify investment by improving the P&L. Companies realizing that sustainable initiatives go beyond social benefits that can improve their bottom lines will emerge as a significant topic for advancing sustainable strategies. With more catastrophic impacts due to climate change becoming a reality, corporate site selection and location strategy will become increasingly focused on more environmentally sensitive footprint solutions.
• Return to Office (RTO) discussion is over – The hybrid work model has emerged as the clear winner, with 72 percent of companies considered hybrid and 60 percent averaging three days per week in the office.
• U.S. Onshore Manufacturing growth but at what cost – The newly elected Trump administration has widely publicized a focus on increased tariffs with countries like Canada, Mexico, and China. As a result, this will drive increased emphasis on developing more manufacturing footprint and jobs in the U.S. While this is perceived as a U.S. economic boost, the cost of shifting inventories, manufacturing, and supply chains will most likely be passed on to consumers and will stimulate another wave of inflation.  As companies hedge for what the next global economic future portends, they may choose to stockpile inventory and wait and see how new economic policies play out.

Mark Voytek, Chief Advisor Thought Leader, IAOP, and Founding Partner at Next Stage Trajectory:

• Increased Use of AI Agents – Companies will adopt AI agents to handle more complex tasks, making processes faster and improving decision-making in healthcare, finance, and retail industries, although AI impacts all industries. In 2025, this shift will focus on enhancing customer success (service and experience) and operational efficiency.
• Workforce Changes Due to AI – As AI tools become more advanced, jobs will evolve to focus on managing and governing AI systems. At the same time, other roles will be eliminated due to the expansion and use of automation. In 2025, businesses will prioritize training and hiring for roles that oversee AI performance, drive insights and actions, and move to more complex problem-solving.
• Shift from Outsourcing to In-House Operations – Companies will move outsourced services, like IT support and customer service, in-house using AI and internal company leverage and technology deployment to drive value and significantly gain and maintain more control. Global Capability Centers (GCCs) will help companies centralize these AI-driven operations, making scaling and improving processes globally easier.
• Increased Role of Agentic AI – Agentic AI represents the next frontier in automation – AI systems that don’t just assist but autonomously manage complex workflows, driving more intelligent decisions and freeing human teams to focus on innovation rather than routine tasks. Fortune 1000 enterprises are getting more comfortable with how to deploy and find value in Agentic AI.
• Potential of Consumer AI – Based on Next Stage Trajectory’s research and in conversations with its portfolio companies, the consumer AI market has the potential to outpace enterprise AI by 2032, driven by personalized experiences that scale globally. The challenge for investments and VCs is identifying early-stage companies that can break through in a competitive, hype-driven market. Investing in user trust, data transparency, risk-mitigated offerings, and practical use cases will define the winners in this space.