Technology sector leads the way in AI, but time for deeper adoption

At the same time, CEOs in the technology sector feel increasing pressure to fundamentally transform their organisations. Geopolitical tensions, rapid technological developments and growing uncertainty around productivity, growth, scale and working capital financing are putting current business models under pressure.

Our survey was completed by 4,454 CEOs from 95 countries, including more than 250 from the technology sector. Technology CEOs distinguish themselves from their peers in other sectors through their strong focus on technological developments and digital resilience.

Concerns about cyber risks and further technological disruption

Globally, the technology sector is the most concerned about cybercrime and further technological disruption. Notably, geopolitical risks rank relatively lower on the list of concerns in this sector than in many others, despite the visible impact of international tensions and espionage incidents involving technology companies.

The ‘low-hanging AI fruit’ has been picked

At the same time, the technology sector is clearly a frontrunner in AI. AI applications in products, services and customer experience are already well advanced. This suggests that much of the low-hanging fruit has been picked. The next phase requires further deployment and deeper integration in other areas.  

Strengthening the foundations for further AI adoption is needed

The results of our survey show that tech companies generally have a stronger foundation for AI adoption than companies in other sectors. This foundation relates to aspects such as organisational culture, a clear strategy, investment levels and data infrastructure. Even so, there is still room for improvement in several areas.  

Message to CEOs: focus on domains where Europe is strong

The message to CEOs in the technology sector is therefore twofold. On the one hand, our survey confirms that the sector is well positioned: AI maturity is high and growth expectations for the next twelve months are above the global average. On the other hand, future-proof growth requires new choices.

Jeroen van Kessel is a partner at PwC and works extensively with high-tech companies in the Brainport region. He sees ample opportunities for tech CEOs who are truly willing to take the step towards transformation. ‘In the field of AI, Europe is lagging behind China and the US. This is because markets here are fragmented and companies are socially and culturally less willing to take risks to avoid violating EU regulations.’

‘Investing in cyber resilience, responsible AI use and robust data foundations is crucial for European companies to regain competitive advantage over countries such as China and the US – and not just undergo further technological disruption, but actively lead it. Access to growth capital and sufficient talent are also important conditions. They should not try to compete generically with Big Tech companies, but instead focus on domains and contexts where Europe is strong. Our survey, for example, shows that companies that can combine trust with targeted AI applications have a significant competitive edge. This is how the Netherlands and the rest of Europe can differentiate themselves.’

Geopolitical landscape creates dilemmas

Van Kessel: ‘We are currently operating in a geopolitical landscape in which large American and Chinese companies are pursuing aggressive industrial policies. As a company, you therefore need to be very aware of your playing field – understand what is happening in the value chain, where geopolitical sensitivities lie, and which partners you need to form alliances with. Because you cannot do it alone. I do see that awareness growing within the sector.’

‘There is also a growing realisation that for our key technologies – the crucial technologies for the economy, society and security – we are often dependent on companies that are now in foreign hands. Take Nexperia, for example. Where this was not really an issue in the past, it now creates dilemmas. And due to geopolitical developments, we risk seeing capital and innovation increasingly disappear from the Netherlands.’

Industrial policy offers opportunities for tech companies

At the same time, geopolitical developments are creating enormous opportunities, – for example when it comes to obtaining government support, Van Kessel notes. ‘In Europe, we are going to see more and more industrial policy. There is momentum to make use of financial support, even though it is complex to obtain. Companies need to be aware of this. Subsidy applications have truly become a boardroom topic.’

‘For CEOs, it is essential to anticipate the next wave, but also to understand that every technology choice has geopolitical implications and affects social acceptance. Geopolitics and technology are becoming increasingly intertwined.’

Offering solutions

‘As a CEO of a technology company, it is also important to remain flexible in execution,’ Van Kessel continues. ‘In the Netherlands, we are well known for good at inventing new things with “deep tech”. But that does not mean you always have to produce them in the Netherlands. I believe the licensing model can be a solution, since we still live in a high-wage country.’

Opportunities in key technologies

Van Kessel: ‘When I look at opportunities, I mainly see them for the Netherlands in so-called key technologies such as medtech, the energy transition and agrifood. Traditionally, we are strong in these areas. In addition, the semiconductor market is picking up and photonics is an important strategic focus. Many tech companies will benefit from this. Photonics, for example, can play a role in sustainability and in defence.

The key to success in these key technologies is not merely offering hardware, but providing a solution. You do this by combining hardware, software and data. This allows you to take a clear position and makes you less vulnerable.’

Van Kessel: ‘Looking ahead to 2026, this must become a year of acceleration for AI adoption. This urgency is also reflected in the recently published Wennink report. Waiting is no longer an option. It is time for concrete action, with universities, government and businesses joining forces.’