EY draws pivotal opportunities for tech companies in 2025, highlighting the impact of AI on business models, workforce dynamics and regulations.
As the year begins, the tech industry reflects on the impact of AI across the world and looks ahead to what is to come.
Analysing the future opportunities of AI for the global tech sector, Ernst & Young (EY) has released a report of how AI is likely to transform even further, on top of the opportunities awaiting technology companies in 2025.
This research aims as a guide for companies looking to utilise AI and keep up with its development, particularly facing challenges in Gen AI and autonomous systems.
The challenges as a result of AI development are sweeping across the world, including shifting investor expectations and increasing scrutiny of AI deployment, which is causing most companies to feel the pressure to redefine their strategic positioning and demonstrate returns on their AI investments.
Therefore, EY spoke to its own leaders amongst its research to gain personal insight from the people navigating the complex intersection of innovation, market demands and regulation, particularly in key markets including the EU, US and Asia-Pacific region.
The identified opportunities from speaking to these leaders span areas from AI implementation and workforce transformation to regulatory engagement and capital allocation, capturing the multifaceted challenges at hand.
Delivering on the promise of AI
EY addresses the pressure the technology industry is under pressure to demonstrate the return on investment (ROI) of AI implementations.
According to James W. Brundage, EY Global and Americas Technology Sector Leader: “2025 will be a pivotal year for the tech industry to demonstrate AI ROI to both customers and shareholders, requiring effective communication of value drivers and demonstrating the operational efficiencies achieved.”
This sheds light on how companies are now tasked with creating frameworks to measure the financial and operational impact of their AI solutions, bridging the gap between deployment and ROI realisation.
Driving growth through agentic AI
The emergence of agentic AI presents a significant opportunity for tech companies.
Geoff Vickrey, EY Americas Consulting Technology Sector Leader, notes: “Agentic AI will rapidly become commonplace as customers across industries race to deploy preconfigured process solutions.”
Agentic AI has uplifted and transformed many business operations, like Google’s implementation of PaLM 2 in its customer service operations: an AI system that autonomously handles customer queries, analyses interaction data and provides personalised solutions.
This technology is also improving marketing and pricing strategies by analysing vast amounts of data and making decisions without human intervention.
Adopting outcome-based pricing models
As customer expectations evolve, tech companies are being pushed to move beyond traditional subscription and consumption-based pricing models, EY notes.
Barak Ravid, EY Americas Strategy and Transactions Technology Sector Leader, warns that “companies that stick with traditional subscription models risk losing to competitors that better align price to value received by consumers.”
This shift towards outcome-based pricing aligns well with the transition to agentic AI but requires careful planning and stakeholder communication.
Demonstrating AI-first operating models
With the boom of AI, tech companies are being challenged to rethink their entire business models and processes to compete with AI-born startups.
Traci Gusher, EY Americas AI and Data Leader, emphasises: “Leaders must resist the impulse to fit Gen AI into today’s processes and business models instead of reimagining them entirely.”
This transformation extends beyond individual use cases to foster cross-departmental collaboration and enhance decision-making across the enterprise.
Unlocking the value of data
EY also highlights the importance of a comprehensive data strategy and that it has never been greater.
It emphasises that tech companies need to establish robust data architectures and governance frameworks to support AI initiatives and more importantly, that this shift is prompting a re-evaluation of cloud investment strategies and the potential for on-premises or edge solutions to support real-time analytics.
“This is an opportunity for tech companies, especially IT services firms, to re-position themselves to capitalise on the demand for robust, scalable data platforms and services”, EY says.
Enhancing cybersecurity with AI
AI-driven security solutions offer significant potential for improving threat detection and response.
EY’s 2024 Global Cybersecurity Leadership Insights Study reports substantial efficiency gains in cybersecurity teams due to AI implementation.
However, tech companies must also be aware that these same tools can be used by cyber adversaries, necessitating a proactive and adaptive approach to security.
“Going forward, the quest for ever more effective ways to use AI in cybersecurity will remain a central focus for the industry – and a major opportunity for those that do this well”, EY notes.
Freeing up capital for emerging technologies
To invest in high-growth opportunities, tech companies are advised to consider divesting non-core businesses and products.
This strategic reallocation of resources can help fund investments in AI and other emerging technologies that are changing the future of the industry.
“2025 may be a moment for tech companies to free up capital for high-growth opportunities like AI through optimisation of their portfolio via targeted strategic divestitures”, EY highlights.
Shaping the agenda with incoming regulators
EY points out that as governments worldwide develop policies on AI, data privacy and cybersecurity, tech companies are encouraged to engage proactively with policymakers
Crucially, this collaboration can help shape regulatory frameworks that foster innovation while addressing societal concerns.
Bridget Neill, EY Americas Vice Chair – Public Policy, states: “Regulating AI innovation is being contemplated at all levels of government today, and the Washington debate is getting louder.
Tech leaders who want to shape the future of this sector are already engaging with Washington policymakers on this important and dynamic issue.”
By advocating for harmonised global standards and responsible AI guidelines, tech companies can position themselves as thought leaders in public-private initiatives.
