Learning investment is under scrutiny

Published in November 2025, Fosway Group’s Digital Learning Realities research analyses all the critical trends and opportunities for learning leaders in the next 12 months. Here, Fosway analysts look at the realities of learning investment.

With little movement over the past three years, a significant number of L&D budgets have experienced sustained belt tightening. And again, this year investment in learning has only grown in less than a third of organisations. Exactly in line with our 2024 results, 61% of L&D teams saw their budget decrease or stay the same. Immediately in the wake of the pandemic, those experiencing a L&D budget squeeze numbered only 8%. But since 2022 we have seen a tripling of L&D teams experiencing a budget decrease. Now, we seem to have entered a new normal. The promise of AI has raised a growing expectation of doing more with less which has led to learning budget stagnation, at best. The pressure on learning budgets is showing little signs of abating. There has never been a more important time for L&D teams to evidence and articulate their value add.

The economic climate is disrupting investment in new digital learning projects

Similar to previous years, this year only 14% have accelerated their investment in digital learning – a distinct change from the e-learning boom that accompanied the pandemic. The backlash against hasty e-learning decisions during COVID further compounded by the current economic climate has negatively impacted the growth of digital learning projects in recent years. As a result, many are experiencing growing inertia in committing new digital learning projects.

This is likely to lead to some stagnation in the e-learning solutions market overall, as well as a reduction in the disruption provided through new and emerging L&D solutions and innovators. Nearly half of buyers are waiting for existing suppliers to deliver innovation – rather than exploring and embracing new supplier options. More so than ever before, corporates wishing to embrace new innovations with new providers will inevitably require a compelling business case if they want to proceed.

The momentum behind AI content authoring reaches new heights

Whilst the big theme for investing in AI-enabled content authoring is repeated this year, there are interesting nuances in the 2025 results that make it different from last year. We have seen an almost 20% increase in those expecting their investment in AI content authoring to grow, and the impact of that investment appears to be coming at a cost. Namely the investment on the internal digital learning team. This year has seen a marginal – but still significant – swing away from investing in internal digital learning resources. Whether this is a momentary glitch or the sign of a shift is difficult to tell, but our suspicion is that AI automation is starting to nibble more aggressively at the core digital learning team than it has done before.

This is an excerpt from Digital Learning Realities 2025. Get the full insight and discover all the latest market and solution trends by downloading all infographics here.

What should you do next?

• Phase Two is now open – alongside Fosway’s publicly available suite of AI research papers come a range of private assets for this AI project’s participants, with a level of detailed analysis and insight you will not find anywhere else. Contact us for more, join Fosway’s strategic AI project for 2025: ‘AI in Learning’.

Other recommended reading

• The full budgeting Realities insight for 2025.
• Build your AI strategy with evidence, not guesswork. Fosway AI Strategic Research Programme
• The 2025 Fosway 9-Grid^TM for Digital Learning – full report. Before the 2026 report is published, get the full analysis of the 2025 market today.

For corporates looking for deeper insight on this and other similar topics, please consider joining our Fosway research network to get access to corporate roundtables, private 1-1 analyst time, benchmark reports and other analyst services or project support. Click here to find out more.

Please also visit the Fosway Knowledge Centre to check out other relevant Fosway research and insights, including filters for segment category, key topics, type of content and vendor-specific information.