Across the entire business landscape Walmart, Boeing, Ford And Lowe’s are among the industry titans who have eliminated or scaled back their diversity, equity and inclusion initiatives despite pressure from anti-DEI activists, fueled by recent lawsuits and court decisions.


With President-elect Trump soon returning to the White House – and naming anti-DEI activists like Stephen Miller to his policy team – challenges ahead corporate DEI efforts are expected to continue rising through 2025, according to trend-watching experts from research firm i4cp and the Texas Diversity Council.


Chief Diversity Officers in particular expect greater pressure on their organizations’ DEI plans and strategies from external anti-DEI activists in the new year, according to an i4cp. report released last week.


However, research shows that even as some companies scale back or eliminate DEI programs, other companies are increasing or not changing their commitment to their efforts, leading to a polarized business community in the United States. For example, 57% of Chief Diversity Officers report that their DEI budgets will not change by 2025, and 29% expect their DEI budgets to increase, according to i4cp’s survey of the Chief Diversity Officer Board, which consists of approximately 50 diversity leaders at Fortune . 500 companies.


Experts also predict that the roles and communication efforts for DEI professionals will shift in the coming year. The communications work will probably be a increased attention to how an organization shares its DEI message, says Lorrie Lykins, vice president of research for i4cp.


Lorrie Lykins, i4cp, DEI
Lorrie Lykins, i4cp


Some employees’ understanding of diversity is quite limited, perhaps related only to race or only race and gender, Lykins says. DEI and HR leaders are responding with efforts to share and better communicate expanded definitions of diversity and inclusion, she says. For example, these efforts can help colleagues embrace a similarly broad understanding of DEI.


According to Angeles Martinez Valenciano, CEO of the Texas Diversity Council, DEI leaders will also shift from diversity advocates to DEI business strategists. Such shifts require leaders to be able to connect diversity, inclusion and equity efforts to data that impacts the business, she says. (Valenciano recently spoke with HR executive to discuss DEI in the coming year. Watch the video here.)


Angeles Martinez Valenciano, DEI
Angeles Martinez Valenciano, Diversity Council of Texas


“Understanding what a business metric is will be a complete skill set to survive and thrive in this new economy,” Valenciano says.


Moreover, AI will play an increasingly important and crucial role in DEI by 2025, both experts say. Valenciano expects more HR leaders to rely on AI-enabled tools to collect data that will illuminate the impact of their DEI initiatives. For example, AI tools or agents can look at employee exit interview data to help discover whether a lack of DEI efforts is contributing to high turnover among diverse employees.


“I think organizations that have mature DEI strategies and programming are the ones that see the results” in retaining diverse employees, Lykins says. “They’re the ones who have the data on the benefits of this, and they’re the ones who say unwaveringly, ‘We’re moving forward and the work continues, and we’re not going to be swayed.’ ”


2025 Predictions for HR LeadersEmployers can examine data from many additional sources, including Glassdoor reviews and candidate surveys, to understand the impact of their DEI initiatives, which can then help protect those initiatives, she says. “I like to talk about data in the sense that it is your sword and shield,” says Lykins.


Finally, as more organizations dismantle DEI initiatives and eliminate DEI teams and the role of Chief Diversity Officer, some HR leaders will likely see remaining diversity programs shift to their departments, experts predict.


In this case, Valenciano suggests that HR leaders should have an honest conversation with their CEO and leadership team to understand whether DEI will remain a business necessity or is likely to be further reduced or eliminated. Valenciano notes that this information is crucial for HR planning and to minimize the potential impact on the organization of moving away from DEI work.


The future of corporate DEI


More than four years ago, the killing of George Floyd, an unarmed Black man, by a white Minneapolis police officer sparked a wave of corporate DEI initiatives, investments, policies and hiring. For example, in 2021, the hiring rate for Chief Diversity Officers is close to increasing tripled compared to the previous 16 months.


While many DEI experts worry that these numbers will drop again and other programs will be cut, Lykins remains hopeful that technology and other factors will limit the impact and perhaps even turn the tide in the other direction. For example, companies’ lack of DEI teams and efforts could create such a rapid backlash within some organizations—toxic cultures and tarnished brands, perhaps—that leaders would have to respond if it hurts employee recruitment and retention.


“I think the pendulum will swing back, and very hard,” Lykins says. “It will be a combination of things to do that, including the influence of AI.”


At the same time, despite the challenges in the U.S., Valenciano says a growing number of organizations in other countries are launching DEI initiatives for the first time, including in her home country of Mexico.


“We in the US are taking a step back,” she says. “But what we know is that the globalization of DEI will be the continuation of diversity.”


Related: Read more 2025 predictions for HR leaders.




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