Digital Trust: Security, Data Privacy, and AI Code Reliability Are the Biggest Software Development Challenges for 2025
Tech Companies Grew in 2024, Even Though They Didn't Expect To, and 78% Will Intensify Focus on Business Intelligence
March 20, 2025

Jason Beres
Infragistics

Following last year's technology challenges with AI integration and limited resources, tech leaders have pinpointed digital trust as a crucial challenge in software development for 2025, according to our sixth annual Reveal Top Software Development Challenges survey. Respondents identified security (51%), AI code reliability (45%), and data privacy (41%) among their biggest software development challenges for the coming year. This mirrors findings from PWC's 2025 Global Digital Trust Insights(link is external) report, with 66% of tech industry execs identifying cyberattacks as their top organizational risk. As we approach a future where AI plays an ever-larger role in software development, ensuring that technologies are secure, reliable, and trustworthy is crucial.


User confidence in the security, reliability, and integrity of digital interactions and technologies has become increasingly vital. More than ever, we are facing a complex threat landscape where even advanced software struggles to keep up with modern cyberattacks, sophisticated threats, and privacy and security challenges. The tech sector has a responsibility to address these risks by integrating protections into their solutions.

The Rise of AI Deployment: A Double-Edged Sword

Artificial intelligence continues to be a major focus in the software industry, according to the Reveal survey. AI adoption has expanded dramatically, with 73% of tech leaders stating that increasing the use of AI within their organizations is a top priority for 2025. However, despite this rapid deployment, many leaders are finding that the execution of AI is more challenging than anticipated. More than half (55%) of respondents cite AI deployment as their biggest business challenge for the coming year.

Our survey indicates that many CTOs underestimated the complexity of AI deployment. Adoption alone isn't enough — execution determines success or failure. Early adopters who rushed AI integration without a strategy are facing fragmented systems, inefficiencies, and unpredictable performance. Without a clear AI strategy, companies are at risk — not because they failed to adopt AI, but because they failed to scale and combat the challenges AI presents.

The surge in AI adoption has created a sharp demand for specialized talent. The most in-demand technical role in 2025 is AI engineers, with 28% of tech leaders actively seeking these professionals. This is nearly double the demand for IT security engineers (16%) and cybersecurity engineers (13%). These talent shortages directly correlate with the top software development challenges — security, data privacy, and AI code reliability. Interestingly, positions such as software developers (25.4%), data analysts (14.6%), and web designers (11.7%), which were difficult to fill in 2024, are not even in the top three for 2025. This shift highlights the growing need for professionals with expertise in specialized areas such as AI and security.

Business Intelligence Emerges as a Key Focus for 2025

While AI and security challenges dominate, the survey also reveals a significant shift in priorities within the tech industry. In 2024, many tech companies defied expectations and experienced unexpected growth despite economic uncertainty. The survey showed that 80% of tech leaders increased revenue, 67% expanded their staff, and 82% took on new projects in 2024. This growth occurred amid a backdrop of global challenges, demonstrating the resilience of the tech industry.

Looking ahead, 78% of tech leaders plan to increase their focus on business intelligence (BI) in 2025. As the demand for data-driven decision-making intensifies, BI has become a competitive necessity. Tech leaders cited several key ways they plan to leverage embedded analytics and BI software in 2025, including improving productivity (47%), identifying trends, patterns, and outliers (42%), making better business decisions (39%), and increasing revenue (33%).

Data-driven decision-making is no longer merely a strategic advantage—it's the cornerstone of success. As more tech leaders harness the power of business intelligence and embedded analytics, one thing is certain: those who unlock the full potential of their data will reap the rewards of increased productivity, growth, and innovation.

A Growing Talent Crisis

Despite the robust growth experienced by many tech companies in 2024, talent shortages remain a significant challenge. The lack of qualified professionals in critical areas such as AI, cybersecurity, and IT security has become a major hurdle for organizations looking to meet the rising demands of the digital age. According to the survey, 48% of tech leaders cited recruiting qualified talent as one of their biggest challenges for 2025.

The growing demand for AI and cybersecurity expertise underscores the urgency for educational institutions and businesses to invest in upskilling and reskilling their workforce. With the rise of AI and increasing cyber threats, the need for highly skilled professionals is only expected to grow, and organizations that fail to address this gap may fall behind in an increasingly competitive landscape.

Conclusion: Navigating the Future of Software Development

The findings from the survey underscore the critical importance of digital trust in shaping the future of software development. As businesses continue to navigate the complexities of AI adoption, cybersecurity, and data privacy, tech leaders must focus on building secure, reliable, and transparent systems to maintain user confidence. At the same time, addressing the talent shortages in specialized areas will be essential for meeting the demands of 2025 and beyond. As digital trust becomes more integral to business success, companies must prioritize strategies that ensure their technologies are secure, reliable, and trustworthy. By addressing these challenges, organizations will continue to thrive in an evolving tech landscape.
Methodology: A total of 250 technology leaders participated in Reveal's sixth annual survey from December 2024 to January 2025. Infragistics has been providing a comprehensive analysis of current trends and challenges in software development, business intelligence, and AI adoption since 2019, helping businesses optimize operations and navigate the evolving technological landscape.

Jason Beres is SVP of Developer Tools at Infragistics, and creator of Indigo.Design
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