The latest State of the Sector report reveals the challenges facing internal communicators in their drive to position themselves as a critical business function.
Rapid change is redefining internal communications, creating opportunities for innovation, AI integration and stronger leadership collaboration. But to thrive, communicators must navigate change fatigue and prove their strategic impact.
Gallagher’s 2025 State of the Sector report, an annual survey of internal communication professionals, highlights both challenges and opportunities within the field. With over 2,000 respondents from around the world, the report provides valuable insight into the view from internal comms of the continued impact of change on the workforce and the ability of the IC function to meet its objectives.
Change fatigue at an all-time high
With organisations undergoing constant transformations, restructuring, technology shifts and cultural overhauls, employees are feeling overwhelmed. In fact, 44 per cent of internal communicators cited change fatigue as one of the biggest barriers to success in 2025, making it the second most significant challenge after limited team capacity.
Rachael Warner, communications consultant at BFG People, suggests: “Organisations that don’t have a northern star narrative that guides employees through the never-ending change are missing a trick. It’s not enough to apply logic and give information. People need to feel emotionally connected to what’s happening – and storytelling is the way to do that.”
Only 56 per cent of respondents had reviewed a change comms plan in the past year, highlighting the lack of strategic preparation for ongoing transformation. Notably, only around one in five respondents (18 per cent) said their organisation didn’t have a change communications strategy, despite 95 per cent communicating about change activity in 2024.
May Flanagan, change communications consultant at Flanagan Communications, advises when it comes to change, the key is listening.
“You can do all the comms you want, but unless you listen and show people that you are taking on board their feedback, then you are just talking to yourself.”
AI remains a grey area
One of the most pressing changes affecting the IC profession is AI. Despite the surge in AI adoption across industries, the report found that only 36 per cent of organisations provide guidance on when, where and how to use AI in their organisation. While this is an increase of seven per cent compared to last year’s report, two in five communicators report having no form of guidance in place for the use of AI tools or systems, nor a dedicated group or individual responsible for AI, nor any training or resources in place related to AI’s risks and limitations.
While 80 per cent of communicators are open to AI assisting with tasks like content creation and copywriting, many remain sceptical about its role in more strategic functions. The lack of governance raises questions about transparency, ethical concerns and AI’s long-term impact on jobs.
Leadership engagement is a challenge
The report underscores the critical role of leadership in effective communication, with two out of five respondents (39 per cent) saying they were highly impacted by a lack of direction from the top.
While 87 per cent of communicators proactively provide advice to leaders, only 70 per cent say that their advice is implemented.
Those who engage with leadership more frequently and maintain a collaborative relationship are significantly more likely to see their recommendations acted upon. The findings suggest a pressing need for stronger leadership buy-in and improved coaching for managers to support internal messaging.
The report collected advice by communicators for people who are now joining the profession. The top three most common tips were: