May 13, 2025 - Are we at an inflection point? Revenue and profit growth have slowed across many industries, not because of macroeconomic forces alone — the acceleration of the digital and AI age have created a profound cultural shift. While tariffs, inflation, and interest rates have created significant headwinds, future-focused CEOs look beyond to two deeper, longer-term challenges.

1. A Talent Gap

   There is a growing dissonance between the skills employees currently have and the capabilities needed to leverage new technologies effectively.

2. The Technology Debt

   Many organizations are still operating with outdated systems that limit innovation, working in silos and hindering the customer experience. We are in the midst of a significant transitional phase, where revenue and profit growth may plateau or even worsen. Those who prioritize investing in people and platforms now will be positioned to lead in efficiency, innovation, and customer value in the future.

Investing in Human Talent and Technology

Investments in human talent and technology have never been as important for organizations as they are today. In his recent book, “Source Code: My Beginnings,” Bill Gates compares the current era of cloud computing and AI to the PC revolution. In the latter, Gates describes the move from expensive mainframes to PC’s equated to computing becoming “free.” In our current state, Gates notes, “intelligence” is becoming free.

The ability to harness this “free” intelligence requires organizations to upgrade legacy systems with modern, integrated platforms which leverage advanced analytics and AI to extract actionable insights from customer and operational data. Unfortunately, many of the skills required to utilize these tools are new to the workforce and upskilling has been difficult. Combine this with today’s volatile market (which has become even more disruptive than last year), it’s no wonder companies continue to innovate in order to adapt and succeed.

Citrin Cooperman’s Private Company Performance Report

Citrin Cooperman has been serving and advising middle-market, private companies and high net worth individuals for over 40 years and created an annual Private Company Performance Report to discuss what is top of mind for business leaders across the country. Access our report to discover valuable insights into the trends, opportunities, and challenges facing businesses today.

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