Finding the sweet spot between risk and reward in TMT

The race to implement AI is reshaping TMT companies both strategically and operationally. 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 significant impact on their company, up 13 points from 2025. As a result, 90% have restructured their teams to support AI adoption, 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 innovate, adapt to structural change, capture value and adopt responsible AI will be key to mitigating risk and securing a competitive differentiation.

Growth through M&A and international expansion

Equally, being prepared for evaluation and due diligence can strengthen a company’s attractiveness as an acquisition target. A recent Forvis Mazars discussions at DealMax 2026, suggested growing 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 and rapidly evolving AI transformation market, being equipped to support a broad expansion strategy can help capture emerging growth opportunities quickly. Mergers and acquisitions (M&A) remain a key pathway to accelerated 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.

Scaling internationally continues to be a priority for many TMT companies. While geopolitical and economic instability is a cause for careful market 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 solutions 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 visible risks and don’t overlook hidden ones

Managing local regulatory compliance, trade adjustment costs and upscaling digital infrastructure are the primary challenges associated with international expansion for TMT leadership teams, according to the barometer findings.

Other, more visible risks linked to acquisition strategies include how international acquisitions are impacted by local legal and data compliance laws, as well as tax regulations. In addition, diversifying data access across multiple data centres can help mitigate increasing cybersecurity threats. However, there are some hidden risks that need careful assessment, particularly when acquiring 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 increasingly focused on businesses that offer a differentiator: solutions that can be scalable 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 key to staying competitive when raising capital.

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 strengthen their investment proposition.

Address data and regulatory issues early, not as a costly 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 leaders, 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 costly afterthoughts.

AI-powered, driven by humans

As AI continues to evolve rapidly, organisations face an expanding array of workplace implementation choices. It requires active engagement by executive leadership to fully understand both the strategic and operational implications of these decisions. Clear oversight of AI-driven solutions is necessary to avoid duplication, inefficiencies and unnecessary costs.

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 frameworks and governance policies is equally important to ensure 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 drivers 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 an increasingly fast-moving market. 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.