In the ever-evolving world of Diversity, Equity, and Inclusion (DEI), organisations are continually adapting to the shifting needs of society and the workforce. Back in 2024, several key DEI trends were forecasted, but as we progress through 2025, the landscape is revealing a more nuanced picture of how these predictions are playing out.
Let’s take a closer look at how the DEI trends of 2024 have unfolded and what is emerging in 2025.
1. Focus Shifting from Diversity to Inclusion
2024 Forecast: There was a growing recognition that the focus of DEI efforts should shift from diversity (representation) to inclusion (belonging and culture). Organisations began reframing DEI to align with broader business strategies, viewing it as a tool for culture-building rather than simply addressing identity-based representation.
2025 Reality Check: The shift toward inclusion is indeed happening, with many organisations leaning more into inclusion and belonging. However, in some cases, this shift is being used as a way to soften DEI commitments or to avoid more difficult conversations around systemic barriers and representation. Instead of tackling hard-hitting issues like inequality, some companies are opting for safer, less controversial DEI initiatives that focus more on creating a “nice” work environment.
2. Finance & Tech Leading, North America Lagging
2024 Forecast: It was anticipated that industries such as finance and tech would lead the way in DEI efforts, while North America might struggle due to increasing political resistance.
2025 Reality Check: The finance and tech sectors are still moving forward with integrating DEI into their strategies, but recent layoffs in the tech industry have led to deprioritisation of DEI roles and initiatives. These industries are facing a delicate balancing act—continuing their DEI work while dealing with economic pressures. Meanwhile, the political climate in the U.S. has created a backlash against DEI initiatives, with some companies stepping back from public commitments, partly due to legal restrictions on DEI programming in certain states.
3. DEI Budgets Holding Steady
2024 Forecast: It was predicted that only a quarter of DEI budgets would be cut, with the majority remaining stable or even increasing.
2025 Reality Check: DEI budgets have largely held steady in organisations that link DEI efforts to risk management, compliance, and talent retention strategies. However, where DEI is seen as a discretionary cost, it is more vulnerable to cuts, especially in industries facing economic pressure.
4. Political & Legal Headwinds
2024 Forecast: Legal and political challenges, especially in North America, were expected to be significant obstacles in advancing DEI programmes.
2025 Reality Check: The legal and political challenges have played out exactly as expected. Several U.S. states have imposed restrictions on DEI programmes altogether, leading companies to adjust their strategies. Many are now re-framing their DEI efforts and shifting the language towards workplace culture, leadership development, and compliance, as opposed to diversity, to avoid potential legal conflicts. President Trump’s executive orders targeting DEI initiatives have further intensified legal uncertainties for corporations.
5. Inclusion as a Talent Strategy
2024 Forecast: The focus was expected to shift towards inclusion as a talent strategy, with an emphasis on belonging, employee engagement, and retention rather than solely on diversity metrics.
2025 Reality Check: The emphasis on inclusion as a talent strategy has indeed taken hold, with businesses more comfortable investing in psychological safety, mentorship, and leadership behaviours rather than solely focusing on diversity metrics. Retention has become an even more significant concern, making inclusion a more strategic and safer way to approach DEI.
What’s Emerging in 2025?
As we move deeper into 2025, several emerging trends in DEI are beginning to take shape:
- AI Bias & DEI: There’s a growing focus on how AI-driven hiring and performance tools can reinforce bias, leading to calls for more robust regulations and oversight in tech-driven recruitment and talent management.
- DEI & ESG: Some organisations are integrating DEI into their Environmental, Social, and Governance (ESG) frameworks. While this could lead to more accountability, there’s also a risk of diluting DEI as a standalone priority, which may undermine its strategic importance.
- Workplace Wellbeing & Neurodiversity: Mental health inclusion and neurodiversity are becoming larger parts of the DEI conversation. This shift reflects a broader understanding that inclusion is not just about visible diversity, but also about creating supportive environments where all employees, including those with neurodivergent traits, can thrive.
- Economic Pressures & Layoffs: Expect more focus on cost-effective, scalable DEI strategies. Instead of large, standalone initiatives, organisations are embedding DEI principles into leadership training.
As we move through 2025, the landscape of DEI continues to change, with a sharper focus on inclusion, talent retention, and navigating political and economic challenges. While some of the DEI predictions from 2024 have come to fruition, the evolving socio-political and economic landscape continues to influence how organisations approach and prioritise these initiatives in 2025.