Cyber and data privacy is the number one risk across the technology, media and telecoms (TMT) sectors, as they become increasingly reliant on innovations such as artificial intelligence (AI) to drive growth, according to the Technology Media and Telecoms risk report 2024 published today by WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company.
The report, based on a survey of the global TMT industry, also reveals growing concerns about the impact of regulation and trade tensions on future prospects. Some key takeaways include:
• Innovation pressure: A majority (67%) of respondents identified innovation as a strategic priority for the next two years, driven by fears of being left behind by competitors or agile start-ups, while artificial intelligence and machine learning are seen as key opportunities for growth.
• Cyber fears: These trends are driving increased perception of cyber threats. It topped the list of risks to business success in all three sectors, with 51% of media and telecoms businesses (51%) and nearly half of technology firms (46%) identified cybersecurity as one of their biggest risks. Ransomware attacks were the top cyber risk factor, named by 62%.
• Regulation worries: 55% said regulation was the biggest barrier to achieving strategic objectives as governments become increasingly assertive with rules around ownership structures and dominant market positions for critical technology and infrastructure.
• Trade tensions: 74% of respondents said trade disputes were among their greatest geopolitical concerns as firms face increasing restrictions and tariffs related to the disengagement between China and the West.
• Climate and ESG risks: 50% of respondents ranked climate change among their top concerns (54% in media), reflecting the rising concern over new technologies’ carbon footprint. Examples of this include generative AI models such as ChatGPT, which require more power than traditional computing.
Matt Grimwade, Client Relationship Director, Direct & Facultative, WTW said “Technology businesses are clearly riding a wave of unprecedented opportunity and demand, harnessing the vast potential that technologies can bring. As well as new risks, this rapid expansion and growing economic importance is bringing increased scrutiny. Restrictive policies covering ownership, market dominance, data, AI and 5G, are being enacted across all of the world’s main trading blocks. TMT businesses need to navigate this changing landscape carefully and reassess their risks and risk management strategies to meet future challenges.”
George Haitsch, TMT Industry Leader, North America added “Technological advancements in TMT have a two-sided nature. As new opportunities arise, they inevitably bring new risks. As a sector, it is imperative that we evolve in alignment with these developments. Adopting new technologies requires a vigilant approach to potential threats, ensuring that we can adapt safely to the shifting technological landscape.”
The complete report can be downloaded here.