Finding the sweet spot between risk and reward in TMT

The race to implement AI is reshaping TMT companies both top-down and bottom-up. According to the 2026 Forvis Mazars C-suite barometer, 52% of TMT executives name AI as their top technology transformation investment priority. At the same time, 70% of TMT executives report that AI is having a major impact on their company, up 13 points from 2025. As a result, 90% have already restructured their teams to implement AI, which is driving significant workforce changes, and 20% now invest more than one-fifth of their budget in implementing AI.

With technology transformation and AI a strategic priority, how TMT companies approach the need to innovate, adapt to structural change, capture value and adopt responsible AI will be key to mitigating risk and gaining a competitive edge.

Growth through M&A and international expansion

Equally, being prepared for evaluation and due diligence can strengthen a company’s appeal as an acquisition target. Based on recent Forvis Mazars discussions at DealMax 2026, indications point to an improved appetite for diversification among US companies, not only through principal initial investments but also through bolt-on investments for overseas portfolio companies.

In a highly competitive, fast-paced AI transformation market, being equipped to support a broad expansion strategy can help quickly lock in emerging growth opportunities. In particular, mergers and acquisitions (M&A) are a route to rapid growth. Integrating off-the-shelf, bolt-on companies enables swift closure of strategic AI gaps in human capital, technology and regional presence. Conducting predictive gap analysis gives the agility needed to gain a crucial first-mover advantage in sourcing assets for acquisition.

Gaining critical scale in overseas markets also remains a top priority for TMT companies. While geopolitical and economic instability is a cause for careful selection, top target countries include the US, Europe and China, according to barometer findings.

However, as the world becomes more connected, the search for the right technology products and skill sets is increasingly geographically agnostic. AI-led and related emerging technology products that can be rolled out across multiple parts of a company globally is now highly coveted by TMT companies, clients and investors alike.

Manage the visibles and don’t overlook hidden risks

Managing local regulatory compliance, trade adjustment costs and upscaling digital infrastructure are the main international expansion challenges for the TMT C-suite, according to the barometer's findings.

Other, more visible risks in acquisition strategies include how international acquisitions are impacted by local legal and data compliance laws, as well as tax regulations. In addition, ensuring data access is diversified across different data centres can help address rising cybersecurity risks.

However, there are some hidden risks that need careful assessment, particularly when buying in AI solutions to gain a competitive advantage. Risks related to copyright, licensing or regulatory sovereignty can slow technology transformation progress and potentially damage trust. A full assessment of the risks and gaining assurance on the use of third-party AI solutions prior to locking into a contract is vital.

PE and VC opportunities in TMT

While TMT companies are not finding much difficulty in raising funds, it’s increasingly not just about having an AI-driven solution. Private equity (PE) and Venture Capital (VC) investors now focus on companies that offer a differentiator: solutions that can be scaled up across a range of services and sectors, as well as those that disrupt. Equally, investors want some assurance that solutions have long-term potential.

As both PE and VC investors are driven by metrics such as growth rates, return on investment (ROI) and expansion plans, the ability for TMT companies to showcase due diligence readiness is vital for being ahead of the game when looking to raising funds.

In addition, careful consideration of AI investment programmes can help hold or improve valuations. By demonstrating measurable ROI, scale-up potential, streamlined software development and monetisation of data analytics, TMT companies can enhance their investment appeal.

Address data and regulatory issues early, not as an expensive afterthought

Data sovereignty is increasingly vital to managing risk in implementing AI-driven solutions. While 70% of TMT executives say their company’s data is “completely” protected, it is 5 points lower than the 2025 C-suite barometer. Questions such as who owns the data? Are third-party cloud services in play? Have the cybersecurity risks been evaluated? How do geopolitical changes impact data access, and is there a clear understanding of evolving regulatory requirements on data and AI? Such questions need to be addressed and assessed within AI strategies at the earliest opportunity.

Regulation is a further concern for TMT executives, according to the 2026 Forvis Mazars C-suite barometer. While there’s a range of international treaties and global standards covering AI, there remains a lack of standardisation across different regional frameworks. A clear understanding of regulatory impacts and the right infrastructure in place early on can help avoid data and regulatory issues becoming expensive afterthoughts.

AI-powered, driven by humans

As AI evolves rapidly, organisations face an expanding array of workplace implementation choices. It demands full engagement by executive committees to understand the strategic and operational impacts of choices made. Clear oversight of AI-driven solutions is necessary to avoid needless repetition across the company that impacts costs and efficiency.

Taking a belt-and-braces approach ensures that AI-driven strategies are not only customised to strategic needs but take account of impacts on the workforce. Updating risk management and governance policies and protocols are equally vital, so that human oversight drives AI initiatives and not the other way around.

The right strategic balance

As innovators and disruptors, TMT companies are considered the powerhouses of transformation. However, the urgent pressure to innovate can sometimes compromise the implementation of adequate safeguards at the outset.

Equally, TMT companies that take a governance-first approach risk falling behind in a market we know is fast evolving. The key to finding the sweet spot between risk and reward is to adopt an AI-led strategy that strikes the right balance between the two.