See the big picture
Despite the economic and political environment remaining a little uncertain, I expect to see Technology, Media and Telecoms (TMT) businesses continuing to benefit from the acceleration in digitalisation and tech led innovation. Companies remain focused on growth opportunities, with 2025 showing a positive start for mergers and acquisitions across the sector.
Head of Technology, Media and Telecoms, Barclays Corporate Banking
Harnessing advances in technology
The use of artificial intelligence (AI), automation and machine learning (ML) continued to pick up pace in 2024 – with Generative AI (GenAI) in particular stealing the limelight – and there’s nothing to suggest the momentum is going to slow any time soon.
I’ve heard many clients voice their concerns regarding the reliability and ethical use of AI, and the uncertainties associated with an evolving regulatory landscape. However, given the vast potential to develop and commercialise it, TMT businesses are likely to continue focusing on balancing the risks with the opportunities to explore how AI can provide value for them and their clients. Those that have already begun to test and adopt these technologies are likely to start integrating them within their systems and processes over the coming year as confidence develops, which could fuel growth and add a competitive edge. Whilst more detail is yet to be understood, the Government’s recently announced “AI Opportunities Action Plan” should add further confidence to the growth ambitions and opportunities of using and developing AI capabilities in the UK economy.
From recent conversations with our clients I expect more businesses will start to shift from simply learning about and trialling AI to fully adopting it to support innovation, drive efficiencies, and provide value.
Head of Technology, Media and Telecoms, Barclays Corporate Banking
Building business resilience
As technology continues to advance, so too does the sophistication and impact of cybercrime. Given the increase in cyberattacks on organisations of all sizes, businesses can’t afford to ignore this risk. Remaining ever-vigilant, and continually looking for ways to prevent and manage cyberattacks, will be essential to every company’s ability to build resilience over the longer term.
Given the advancement of technological solutions, it’s important for the industry to remain abreast of not just innovation now but new advances. Take quantum computing for example, which has the potential to revolutionise so much, from increasing the capabilities of AI and ML, through to developing products and solutions in much faster time frames. Although the practical application of quantum computing – and the associated opportunities – may be some way off, we all need to be aware of the associated risks, such as being able to render current encryption methods useless.
Through conversations with clients, it’s evident that the need to transition to net zero will continue to be front of mind for many in 2025. Various new government initiatives, such as the launch of Great British Energy1 and the National Wealth Fund2, along with the government’s commitment to Industrial strategy specifically supporting climate technologies and green energy, are some of the factors likely to drive opportunities in the sector.
The industry, of course, has a central role to play in developing the technologies to help deliver a more sustainable economy, and over the past couple of years we’ve seen various examples of these technologies quickly advance from proof of concept through to technical readiness. Whilst access to capital to help these businesses scale is well debated, it’s been positive to see some recent capital raisings and I expect to see more activity in the coming year as business plans develop and access to finance increases.
As businesses begin to move forward from the recent factors that created a more volatile market environment like Covid businesses may want to ensure they’ve got the necessary agility and flexibility to make the most of potential mergers & acquisitions and investment opportunities as they present themselves.
From climate technology through to GenAI and beyond, new technologies continue to be developed at breakneck pace. Businesses that adapt a curious mindset, stay abreast of new innovations, and explore how emerging technologies could add value to their organisation (while understanding the risks) are more likely to gain an advantage in a competitive landscape.
Although it’s important to remain aware of the risks and to use AI responsibly, businesses shouldn’t be afraid of it. By following a well-planned strategic approach, equipping your teams with the right skills, and staying true to your vision, your business should be well-equipped to explore new opportunities with confidence.
If you’re looking to unlock growth opportunities to move your business forward, our £22bn Business Prosperity Fund is available through some of our borrowing and refinancing options. See how we could work together to achieve your ambitions and strengthen the UK economy. Subject to normal lending assessment, status and application. Terms and conditions apply.
Keeping fraud front of mind
Fraudsters are as active as ever across the technology, media and telecoms sector, impersonating our colleagues and attempting to defraud our clients. To help protect you and your business we have a wealth of resources available. You can view our quarterly fraud webinars and take a look at our other educational resources on our Fraud Protection Hub.
To discuss your business requirements and how Barclays can support you, contact us today.
