Cyber security and data privacy represent the top risk across the technology, media and telecoms sectors, as they become increasingly reliant on novel technologies, including artificial intelligence, to drive growth.

This is amongst the findings of WTW’s 2024 Technology Media and Telecoms Risk report, published today.

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.

Commenting on the findings of the report, Matt Grimwade, client relationship director, direct and facultative, WTW said that, as well as new risks, rapid expansion and growing economic importance is bringing increased scrutiny to the TMT sectors.

“Restrictive policies covering ownership, market dominance, data, AI and 5G, are being enacted across all of the world’s main trading blocks,” he noted. “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."


TMT risks – key takeaways (Source: WTW)

• 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 AI and ML are seen as key opportunities for growth.

• Cyber fears are driving increased perception of the 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%) identifying cyber security as one of their biggest risks. Ransomware attacks were the top cyber risk factor, flagged by 62%.

• 55% said regulation was the greatest barrier to achieving strategic objectives as governments become increasingly assertive with rules around ownership structures and dominant market positions for critical technology and infrastructure.

• 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.

• 50% of respondents ranked climate change amongst their top concerns (54% in media), reflecting the rising concern over the carbon footprint of new technologies. Examples of this include generative AI models, which require more power than traditional computing.

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