What's next for impact measurement in 2025?

Trends, challenge and opportunities.

As we step into 2025, the world of impact measurement continues to evolve, being shaped by technological advancements, regulatory changes, and a growing demand for more meaningful accountability.

Yet, as the saying goes, all that glitters isn’t gold. Beneath the buzzwords and shiny new tools lie critical challenges and opportunities for those working to measure and grow their social impact and social value.

Here’s a look at what I think is on the horizon for 2025 in the world of impact measurement:

1. AI as a double-edged sword

AI is set to play an even bigger role in data collection, analysis, and data visualisation. Predictive analytics will help organisations anticipate future trends and potential impacts, while automation will streamline reporting processes. However, the rush to adopt AI raises questions about ethics, data sovereignty, and the ability to capture qualitative, human-centric nuances. Technology will enable, but it won’t replace the need for thoughtful, participatory evaluation approaches.  If you haven’t started looking at the opportunities that AI provides for your impact measurement now’s the time to do it.

2. From gamification to genuine accountability

Despite progress, many organisations still rely on inflated metrics and gamified reporting to showcase their impact. Overstating contributions through excessively large numbers might grab headlines, but it undermines credibility. Stakeholders in 2025 will demand more authentic, transparent reporting that aligns with real-world outcomes. The critique of “impact washing” and “impact inflation” will intensify and there will be a few big names making big mistakes in this area.   The real challenge will be for organisations to shift from wanting a nice story and putting a PR spin on things to measuring and communicating their work with integrity.

Alongside this we’ll see a new generation of impact investors who are willing to forego financial returns in exchange for social returns – showing that impact investment done right is workable, unlike the current model which exploits social sector organisations by expecting market rate financial returns as well as social returns. This desire for both is currently destroying the impact investment market as you can get better terms from traditional investors who will simply accept a market rate financial return with no requirement for social returns.

3. Tailored approaches over standardised frameworks

The one-size-fits-all era of impact frameworks is waning. While standardisation has its place, there will be a push-back on over-regulation and standardisation of approaches.  This will be driven by a growing recognition that organisations need to measure what matters most to them. In 2025, impact measurement will prioritise localised, context-specific approaches that challenge the dominant Global North methodologies. However, the challenge remains: how do we balance tailored metrics with the need for system-level indicators that track progress on shared societal goals like the SDGs?

4. Buzzwords vs. substance

Equitable evaluation, participatory approaches, and system change are the buzzwords of the moment. While these concepts are crucial, they’re not new and they risk becoming empty jargon if not implemented thoughtfully. Organisations that are already measuring what matters and evaluating effectively will find these principles embedded in their processes. The real work lies in ensuring these terms translate into meaningful action, not just glossy reports.

5. The new Procurement Act: saviour or sideshow?

The much-anticipated new Procurement Act is being hailed as a game-changer for social value integration. But will it deliver? In 2025, the focus will shift to implementation. Will the Act drive real change in procurement practices, or will it fall prey to superficial compliance? The jury is still out. If you missed my previous article discussing this you can read it here.

6. Integration of ESG and impact measurement

The convergence of ESG (Environmental, Social, and Governance) and impact measurement will accelerate. Investors and stakeholders will push for clearer alignment between ESG metrics and tangible social outcomes. This shift will challenge organisations to bridge the gap between financial returns and social value creation.  A focus on the much-forgotten S – Social – will make me happy this year.  Alongside, this we’ll be moving away from compliance and tick-boxing exercises, so actively managing and improving ESG and impact credentials.

7. From outputs to outcomes

Funders and stakeholders are increasingly prioritising systemic, long-term outcomes over short-term outputs, and this means organisations will need to get smarter and better at capturing data on these complex and interconnected impacts. For this to happen, collaboration and data sharing will be essential, and investment in longer-term programmes rather than short-term projects.  Change takes time will be one of resounding messages of funders’ shifts in focus in 2025.

8. Data sovereignty and ethics

As data collection becomes more pervasive, questions around ethics and ownership will take centre stage. How do we ensure that impact data - especially from communities - is collected and used responsibly? Transparency and community consent will become non-negotiable in 2025.

9. Radical and future-focused trends

It wasn’t very long ago that that the idea of AI being integrated into so much of our lives was considered impossible, with the ability to train an AI to do every day tasks, speak and act like you a long way off.  So what’s next? Robots conducting surveys?

Decentralised impact measurement

A role for blockchain technology maybe?  It could enable decentralised, tamper-proof data systems, and provide community stakeholders with more direct control over how their data is used and interpreted.

Impact tokens and alternative currencies

Impact-linked tokens or currencies could emerge as innovative ways to reward social contributions. Imagine organisations earning tradable tokens for verified social impact that can be exchanged or reinvested into further projects.  A bit like what the Social Value Act was designed to achieve – except the rewards go to the communities through projects actually delivering impact on the ground rather than a distant corporation.

Biofeedback and real-time data

Advancements in wearable technology could introduce real-time impact measurement tools, such as tracking mental and physical health improvements in individuals participating in social programmes.  There are several tools like this already out there – but they’ll likely go even further this year.

Net-positive impact mandates

The conversation may shift from reducing harm to creating net-positive impact, where organisations are not just minimising their footprint but actively restoring ecosystems, improving health, or reducing inequality on a larger scale. And thankfully, we’ll see the death of carbon offsetting - as it won’t have actually offset anything much as it requires no behavioural change.  We’re a way off yet (as many governments are still spending millions/billions on this), but carbon capture and storage will also be identified as another money-making scam that doesn’t deliver when it comes to reducing carbon in the atmosphere.

10. Buzz or gold? The challenge ahead

As the sector evolves, the line between meaningful innovation and empty hype will remain thin. To cut through the noise, organisations must focus on what truly matters: centring people and planet in their impact work, measuring outcomes with integrity, and fostering systemic change.

After all, true impact is about more than metrics - it’s about making a real difference in the world.

Share your thoughts on what you think will be happening in the impact measurement world in 2025 by commenting below.