Claude Mythos
This article sets out what independent evaluators found, where the genuine risks lie, and what this means for our clients and how it impacts the services we offer.
SXSW proved once again it is a leading forum for understanding how technology, media and telecommunications are converging. Its London edition brought together global leaders, policymakers, creators, and investors to explore the forces shaping the next phase of growth.
Forvis Mazars TMT joined industry leaders at this global gathering with the breadth of the programme offering a wide range of perspectives. The 2026 theme, “Shape the Future”, marked a clear shift from exploring trends to focusing on how organisations translate innovation into competitive advantage.
For leaders across the TMT sector, SXSW provided more than inspiration. It surfaced practical insights into how AI, the creator economy, and international expansion are redefining competitive advantage.
One of the key messages from SXSW was that AI has moved beyond the realm of innovation into the core of business strategy.
The conversation is no longer centred on capability or potential. Instead, the focus has shifted to how organisations govern, operationalise and scale AI effectively. As discussions highlighted, AI is increasingly acting as a power structure, influencing not just productivity, but decision-making, value creation and competitive positioning.
However, despite the scale of opportunity, adoption remains in its early stages. As one speaker noted, using AI today is often “like having a smartphone and only using it to make calls”.
There was a strong consensus that:
This is especially relevant as TMT businesses begin to move beyond large language models (LLMs) towards more integrated, domain-specific AI solutions, such as autonomous networks, AI-driven content pipelines, and intelligent customer platforms.
For TMT leaders, AI is a critical part of a broader strategic transformation. Competitive advantage will come from how effectively AI is embedded into products, services, and operating models.
SXSW reinforced the extent to which content has evolved into a core driver of value creation, particularly within media, entertainment, and platform-led businesses.
The rise of the creator economy is fundamentally reshaping how audiences engage and how revenue is generated. For TMT organisations, this translates directly into changing business models, where:
Sessions featuring entrepreneurs such as Jamie Laing as well as “Ant & Dec,” highlighted how businesses can now be built as content-first platforms, often starting with audience engagement before scaling into broader ecosystems. At the same time, the structure of creative industries is shifting. Media organisations, agencies, and content platforms will increasingly need technologists at their core, as AI, data and production converge.
For TMT leaders, this creates several strategic priorities:
"As Nick Clegg mentioned during his session ‘Can Europe Compete?’, reflecting on his time at Meta, social media platforms have moved away from peer-to-peer engagement and are now ‘pipes’ for broadcasting entertainment content. Companies that can engage audiences across multiple platforms and different content types are experiencing rapid growth in this global content market." Nathan Reay, Head of Technology, Media & Telecommunications |
In this context, the boundary between technology and media companies continues to blur, requiring TMT organisations to operate across both disciplines simultaneously.
SXSW highlighted a more nuanced view of globalisation, with increasing opportunity driven by geopolitics, regulation, and regional approaches.
For TMT businesses, many of which operate across borders, this complexity is particularly pronounced. Issues such as data sovereignty, regulatory divergence and infrastructure control are reshaping how businesses scale internationally.
We are entering what many described as a fifth era of technology, in which the UK and Europe have the potential to play a more prominent role, particularly in areas where computing intersects with the physical world. There is also a growing sense that the UK and Europe are becoming more confident and scalable, with increased collaboration across markets.
“The US and China continue to lead the way in large language model development, but for the UK & Europe it will be important to be at the forefront and anticipate the next wave beyond LLMs.” Dani Patel, TMT Corporate Finance Director: Mergers & Acquisitions |
For TMT, this creates a specific opportunity to:
However, realising this potential will require deliberate strategy, particularly in navigating regulatory complexity and accessing growth capital at scale.
While much of SXSW focused on TMT, some of the most impactful insights centred on leadership. High-profile sessions, including those featuring Michelle Obama and Queen Rania Al Abdullah of the Hashemite Kingdom of Jordan, emphasised the importance of resilience, discipline, and trust in navigating an increasingly complex and uncertain environment.
For TMT leaders, this is especially critical. The sector plays a central role in shaping how information is created, distributed, and consumed, placing it at the heart of broader societal and regulatory debates.
Two shifts were particularly relevant:
There was also a strong message that the most successful organisations will be frontier-breakers. Those willing to challenge existing models, whether through new platforms, new monetisation approaches, or new applications of AI.
For organisations in the sector, this requires balancing innovation with responsibility, and ensuring that growth is supported by strong governance, ethical decision-making, and stakeholder trust.
SXSW London 2026 made one point clear: the opportunity is no longer in recognising change, but in acting on it. AI, content-led business models, and the global landscape are already reshaping how value is created. Organisations that move fastest, from experimentation to execution, from adoption to optimisation, will define the next phase of growth. Those that hesitate risk falling behind. The priority for TMT leaders should be to embed AI at scale, rethink business models around platforms and content, and position strategically within an increasingly fragmented global market.
The future of TMT will not be shaped by those who wait - it will be defined by those who act.
Get in touch with our technology, media and telecommunication experts. |
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