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Foreword
A number of forces are shaping the technology and telecommunications sector. Investment in Artificial intelligence (AI) is massive and the pace of change intense. AI is enabling companies to automate processes, improve efficiencies, and with Agentic AI, assist in decision making. Businesses are also coming under pressure to use AI to secure growth and questions are beginning to being asked about whether investments in AI will pay off. In addition, those operating in the sector, and their customers, are also concerned about trust. Specifically, there is a focus on integrity and confidence in products and outputs in a world where increasingly more outcomes are determined by AI.
Companies are concerned about the shape and make-up of their current and future workforces. Determining which functions and activities can be undertaken by AI may be straightforward in certain settings but determining the right balance between human intelligence (HI) and AI, is an evolving challenge. Decisions around hiring, retiring, skilling and upskilling must all be revisited.
Regulatory compliance concerns also loom high on leaders' priorities and is affecting the way in which they invest in and role out AI. In addition to differences across the globe regarding data privacy, tariffs, and antitrust restrictions, complications related to cyber security and matters of national security interests can restrict where companies invest, and where they source and sell products and services.
Meanwhile, as the sectors thirst for energy continues to rise, companies across the sector must consider how they can source reliable, affordable resources. While attitudes differ across the globe, many companies are leading the way in investing in and procuring energy from sustainable sources, while reducing emissions across their operations and supply chains.
Against this backdrop, the 2025 CEO Outlook survey reveals how technology and telecommunications CEOs are addressing these major economic, technological, geopolitical, regulatory, and talent challenges. The responses indicate that the sector is approaching the future with confidence, keen to embrace AI and innovate.
Technology and telecommunications companies may be spearheading the AI revolution, but it's equally important that they use this exciting technology effectively within their own businesses, while continuing to exert the entrepreneurial qualities so characteristic of the sector.
The responses indicate that the sector is approaching the future with confidence, keen to embrace AI and innovate."
Anna Scally
Global Head of Technology, Media & Telecommunications, KPMG
International
Executive summary
Faced with rapid and unpredictable geopolitical, economic and technological change, today's technology and telecommunications leaders retain a firm yet measured confidence in the prospects of both the sector as a whole and their companies in particular. Expectations of growth are high, while M&A remains firmly on the table — not just to acquire customers, but, increasingly, to access AI talent and infrastructure.
AI is considered a major vehicle for transforming efficiency and driving new revenue streams from innovative new products and fresh routes to market. According to the CEOs surveyed, technology and telecommunications companies are putting their money where their mouths are and investing heavily in AI. However, there is concern over the ethical challenges of AI adoption, and a recognition that strong governance is necessary to maintain stakeholder trust.
Given the transformational impact of AI, these leaders feel they have some work to do to bring their workforces up to speed — including winning hearts and minds. Companies are investing substantially in upskilling, with a willingness to seek external support to integrate AI and access valuable expertise. Another challenge to overcome is the intergenerational shift, with a need to satisfy employees of different ages and experience with compelling career opportunities.
Sustainability may have taken a back seat in certain geographies, but wider environmental, social and governance (ESG) issues remain an imperative for many in the sector. CEOs point to a pressing need to meet compliance and reporting requirements. The sector is yet to fully embrace the potential of ESG to deliver value, by reducing dependency on unreliable energy sources, reducing costs and creating more reliable supply chains. And, while CEOs are largely optimistic about their ability to hit net zero targets, they admit that they need more technical skills in this discipline.
In a sector that literally drives the world, its leaders are surging ahead with confidence, but also with a degree of caution, in order to both deliver and harness the huge potential of technology in a safe and sustainable manner.
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