In the ever-evolving telecommunications, media, and technology (TMT) landscape, standing still has never been an option. Over the last decade, population shifts, streaming domination, and new devices have redefined the industry—and what customers expect from it. How will 2025 continue to reshape the TMT landscape?
Over the next year, the continued rise of artificial intelligence (AI) and emerging challenges will push TMT to keep transforming to stay ahead. Businesses will need to harness the potential of AI to help them navigate the uncertainty ahead.
Drawing from marketing research and industry expertise, Publicis Sapient breaks down the top five trends that will shape the industry in 2025 and offers ways that TMT organizations can stay ahead of the curve.
The rapid advancement of AI in recent years has touched every industry, and TMT is no exception. According to a report by tech giant Nvidia, 66 percent of surveyed telco professionals indicated that their organizations would invest more in AI in 2024. This explosion in investment sets the stage for 2025 to be another crucial year for AI transformation.
Telcos aren’t alone in this move toward AI. Every sector in the industry will continue to explore AI and its impact on business. “2025 is the AI playground year,” says Raj Shah, Publicis Sapient’s industry lead for TMT in North America. “Companies need to experiment with AI use cases to identify long-term benefits, even if immediate returns are not evident.”
Whatever shape AI ultimately takes, one thing is certain: It offers opportunities for companies in every sector to modernize legacy systems, optimize operations, and enhance customer experiences.
For media and entertainment, questions over the ethical use of AI intensified during the 2023 industry strikes, and they have yet to be resolved. But the use of generative AI on scripts or in the production process represents only a portion of what AI can do for the sector. Streaming services will find new ways to help customers discover and connect with content with the help of AI, and new AI-optimized devices will only make that process easier.
The telecommunications sector faces its own challenges in ensuring network strength and speed while keeping spend to a minimum. Shah emphasizes, “AI can help telcos modernize their code and reduce operational costs, freeing up capital for innovation. Another big question is how AI will be leveraged to create new revenue streams and enhance customer experiences.”
Indeed, the practical applications of AI are still being explored. The rapid rise and fall of technologies like blockchain and the metaverse illustrate the importance of developing strong use cases for emerging technology before committing big budgets. These use cases will define the AI landscape in 2025.
How important will AI be for the TMT industry over the next year? Survey results show:
“2025 IS THE AI PLAYGROUND YEAR. COMPANIES NEED TO EXPERIMENT WITH AI USE CASES TO IDENTIFY LONG-TERM BENEFITS, EVEN IF IMMEDIATE RETURNS ARE NOT EVIDENT.”
— Raj Shah, Industry Lead for TMT in North America, Publicis Sapient
System modernization is really about data—having the right infrastructure to uncover data, make the most of it, and ensure that it is managed efficiently. As AI adoption accelerates, data has never been more important, and TMT companies have never had a better opportunity to use it to fundamentally transform their businesses.
Even as these projects remain critical, organizations often struggle to enact them due to internal barriers. In the TMT industry, Publicis Sapient research revealed that 35 percent of survey respondents rated a lack of technological skills at a board level as a significant barrier to system modernization efforts.
These barriers play out at the sector level as well. Telcos are often burdened by outdated billing systems and cumbersome code. The industry relies heavily on two major systems—BSS (billing support systems) and OSS (operational support systems)—and these are typically built on legacy code that needs modernization.
AI offers a potential solution to this challenge. “AI certainly plays a role in helping CIOs and telcos modernize their legacy code. You can reduce your operational cost of running the network and billing systems, modernize your code, and take that freed-up capital and reinvest it into innovation,” Shah says.
From tablets to televisions, consumers have a number of devices at their fingertips to help them connect with content and one another. That number has only grown from one year to the next. In 2023, the number of mobile phones exceeded the world’s population for the first time.
The multitude of devices will likely contribute to an escalating waste crisis as consumers swap out older devices for newer ones. The United Nations Institute for Training and Research predicts that the world will generate 82 million tons of e-waste by 2030, 33 percent more than 2022 levels.
At the same time, consumers are becoming more environmentally conscious, leading to extended lifecycles for electronic products and services that enhance them.
“The average upgrade cycle for a TV has stretched from three years to about seven years,” notes Shah. “Companies need to find ways to engage customers throughout this extended lifecycle.”
For example, companies can provide software updates, accessories, and recycling programs to keep customers engaged and promote brand loyalty. Companies can transition from providing commodity hard goods to services, even to the point of providing devices as services.
The streaming wars have reached a turning point. For the first time in a decade, the total number of streaming subscribers dipped. In North America, the battle for market share is intense, with established players vying for dominance. In Europe, the market is more fluid.
Each sector in TMT faces unique challenges and opportunities. But by focusing on innovation, sustainability, and emerging technologies, industry leaders can navigate this evolving landscape to drive long-term success. The challenges and opportunities they face in 2025 will include finding the right ways to leverage AI for personalization, upgrading systems to get the most out of their data, exploring sustainability programs, expanding beyond a focus on subscribers, and providing added value for customers through the right services.
In telecommunications, the race toward profitability through enhanced services and the potential disruptive entry of tech giants will shape the future. In media and entertainment, the move toward an advertising-plus-subscription model and the likely consolidation of streaming services will redefine the industry. The technology sector will continue to emphasize sustainability and explore practical AI applications to enhance customers’ experiences.
Ultimately, the key to thriving in this dynamic environment is to stay agile, innovative, and customer focused. By embracing these principles, the TMT industry can unlock new opportunities and continue to drive growth in the years to come.
RAJ SHAH
Industry Lead for TMT, North America
raj.shah@publicissapient.com
Publicis Sapient is a digital transformation partner helping established organizations get to their future, digitally enabled state, both in the way they work and the way they serve their customers. We help unlock value through a startup mindset and modern methods, fusing strategy, consulting, and customer experience with agile engineering and problem-solving creativity. As digital pioneers with 20,000 people and 53 offices around the globe, our experience spanning technology, data sciences, consulting, and customer obsession—combined with our culture of curiosity and relentlessness—enables us to accelerate our clients’ businesses through designing the products and services their customers truly value. Publicis Sapient is the digital business transformation hub of Publicis Groupe. For more information, visit publicissapient.com.