Tech Sector 2025: AI, Data, and Compliance Drive Operational Shifts

PwC reports that the tech sector in 2025 faces both disruption and opportunity, with companies expected to navigate operational reinvention driven by advancements in generative AI, IoT, and semiconductors. Key trends include business model reinvention, data optimization, operational efficiency, and responding to regulatory and geopolitical shifts. While 85% of TMT executives believe they can scale new business models and 76% plan to leverage GenAI, challenges remain in areas like data monetization and AI governance. With ecosystem-driven companies seeing significantly higher margins, M&A activity and strategic partnerships are poised to support growth. Operational focus includes increasing adoption of GenAI, cloud investment, which is identified as a top budget priority by 84% of TMT companies, and managed services to enhance efficiency and resilience. Regulatory concerns span cybersecurity, trade policy, and climate-related rules, with heightened scrutiny from U.S. agencies and global tensions, especially involving China. Agility in adapting to changing compliance demands and political developments is emphasized as essential for ongoing innovation and competitiveness.