Deloitte’s Technology, Media & Telecommunications (TMT) 2025 Predictions: Generative AI paves the way for a transformative future in the industry

VIENTIANE, 28 November 2024 - Deloitte Global has released its “Technology, Media & Telecommunications (TMT) 2025 Predictions” report, forecasting a pivotal gap year for generative artificial intelligence (GenAI) and the TMT sector—spanning from technical challenges for the industry to societal imperatives. By addressing challenges in infrastructure, gender equity, energy consumption, trust, and capabilities, the industry could be poised for a significant leap forward and is well positioned to determine the future of Al’s legacy.

Here are some key takeaways from the report:

• GenAI driving data centre energy consumption surge: Electricity consumption by global data centres is forecasted to double to 4% by 2030 as power-intensive GenAI consumption grows faster than other uses and applications.
• Women’s adoption gap in GenAI usage closing quickly: By 2025, women’s experimentation and usage of GenAI is projected to meet or exceed that of men, but technology companies still should improve trust, representation in training models, and diversity in the AI workforce.
• Enterprise use of AI agents on the rise: 25% of enterprises using GenAI are forecast to deploy AI agents in 2025, growing to 50% by 2027.
• GenAI set to make devices smarter: In 2025, the share of shipped GenAI enabled smartphones could exceed 30%, in addition to about 50% of laptops with local GenAI processing capabilities.
• Telecom consolidation expected to reshape global markets: Wireless telecom mergers and acquisitions are likely to rise, especially in Europe, enhancing network resilience and efficiency.
• Streaming fatigue fuels shift to aggregated platforms: The number of streaming video-on-demand subscriptions (SVOD) per household is forecast to peak in 2025 at four services in the US and a little over two in Europe, then decline going forward.

"We are standing on the brink of a new era in human invention and the choices we make today around the development and use of artificial intelligence will shape the future,” says Deloitte Global TMT Industry Leader Ariane BUCAILLE. “As we define the roadmap for Generative AI, we must navigate many challenges. By embracing trust, inclusivity, and sustainability, we can ensure that technological advancements positively impact not only the current generation but also businesses, consumers, and broader communities for generations to come.”

“GenAI has democratised advanced AI by putting it in the hands of every employee. Based on Deloitte’s analysis, 43% of employees in Asia Pacific are already leveraging GenAI, and Southeast Asia ranks second out of nine locations for GenAI use. Despite the rapid growth of GenAI, many organisations are still exploring how to fully leverage its benefits. As GenAI reshapes the technological landscape, success hinges not on technology alone, but on our ability to leverage these tools to augment human capabilities. We see a critical opportunity for telecommunications and technology companies in Southeast Asia to transform workforce capabilities through strategic and targeted capability building to harness AI. The future belongs to organisations that not only introduce AI into existing processes, but also empower their people to innovate and adapt in AI-led transformation,” says YANG Chi Chih, Deloitte Southeast Asia TMT Industry Leader.

GenAI expected to double data centre energy usage with advanced technologies helping in clean energy transition

Deloitte predicts that global data centre electricity consumption could roughly double to 1,065 terawatt-hour (TWh) by 2030—or 4% of total global energy consumption, as power-intensive GenAI training and inference continue to grow faster than other uses and applications.

Technology companies—including cloud providers, semiconductor companies, and data centre operators—can help drive the clean energy transition and mitigate the growth in electricity usage. They may leverage substantial financial resources that their partners—innovators, renewable energy producers, and utilities—may lack. Major technology companies are actively investing in more efficient chips, innovative cooling solutions, energy-efficient designs, and carbon-free energy sources and are committed to achieving net-zero targets. While Deloitte predicts that these collaborations have the potential to mitigate the energy impact of GenAI, many associated research and development initiatives and pilot programmes are expected to take years to yield tangible results and return on investment.

Women’s use of GenAI projected to match that of men in 2025 in US but global gaps remain

Deloitte predicts that experimentation and usage of GenAI by women will equal or exceed that of men in the US by the end of 2025. In 2023, women’s use of GenAI was just half that of men. However, over the past year, the proportion of women in the US adopting GenAI has tripled, significantly outpacing the 2.2x growth rate seen among men. Around the world, countries and regions are expected to close the adoption gap at varying rates with some achieving equal usage by men and women in 2025 and others in 2026.

“While the rapid increase in women’s adoption of GenAI is promising, eliminating gender disparities in GenAI will require focused efforts. Women in tech – who are using GenAI more than their male counterparts for everyday tasks – can be an important cohort to help drive change. Tech companies must enhance trust, reduce bias, and strive for more diverse GenAI workforces – including at the leadership level – to ensure that everyone can fully engage with and benefit from GenAI technologies. By doing so, companies can unlock greater innovation and broaden their consumer base ensuring products and services are equitable and effective globally,” says Gillian CROSSAN, Deloitte Global Technology Sector Leader.

AI agents are on the rise with 25% enterprise adoption expected by 2025

Deloitte predicts that 25% of enterprises using GenAI are expected to deploy AI agents in 2025, growing to 50% by 2027. The growth of AI agents – software solutions designed to complete tasks with minimal human intervention – will be fuelled by innovation from both start-ups and established industry leaders identifying new revenue opportunities.

Built on large language models, these AI agents will offer greater flexibility and a wider array of use cases compared to traditional machine learning or deep learning methods. While the ultimate aim is to achieve autonomous and dependable agents, Deloitte expects significant improvements in their capabilities in 2025 as these technologies rapidly advance, with agentic AI moving past pilots and proofs of concepts in some markets and for some applications in 2025. While early adopters will grapple with complexities and challenges, the vision is compelling enough for organisations to take proactive steps to prepare themselves now for adoption. This evolution will enable AI agents to tackle a broader range of applications, providing businesses with valuable tools to drive productivity of knowledge workers and efficiency gains in workflows of all kinds.

Smartphone and PCs put the power of GenAI to test

As smartphone and PC manufacturers aim to reignite consumer excitement, Deloitte forecasts that in 2025 GenAI-enabled smartphones will exceed 30% of total shipments. PCs with local GenAI processing capabilities will be around 50% of total shipments, rising from 30% in 2024.

2025 is a pivotal year to evaluate the value and comprehensiveness of early GenAI functionalities. Although Deloitte predicts a 7% increase in global smartphone shipments (up from 5% in 2024) in 2025, the revenue impact is higher than the volume impact as consumers buy higher-priced premium smartphones equipped with advanced GenAI features. But time will tell how quickly users adopt the innovative features that providers are hoping to drive sales.

Telecom consolidation reshapes global markets

Deloitte predicts that there will be an increased pace of wireless telecom consolidation, especially in Europe, beginning in 2025 and continuing on, creating a more viable and sustainable wireless ecosystem, especially in smaller markets.

While Deloitte forecasts that the overall number of M&A deals will remain steady at about 400, the focus will shift towards market-level consolidation, with smaller telecom companies targeted by larger players. Since 2020, 13 telecom mergers have been approved or are under consideration, including six in the Americas, five in Asia-Pacific, and two in Europe.

“As companies look to acquisitions to drive value, they need to bear in mind the key fundamentals before potentially investing trillions of dollars in deals. In Southeast Asia, there have been recent success stories where M&As have led to sustained revenue growth, improved shareholder value, as well as synergies in network capital expenditure and operations. The common thread behind these successes is clear: alignment on key non-negotiables—values, purpose, and culture—across all levels, building a seamless ecosystem involving internal stakeholders, external partners, and employees, and executing the deal strategy with speed and precision,” says Piyush JAIN, Deloitte Southeast Asia TMT Industry Strategy, Risk and & Transactions Leader.

Fatigue and cost fuel rise of aggregated streaming platforms

After peaking at around four subscriptions per consumer in the US and over two in most European markets in 2024, Deloitte predicts that SVOD stacking—the trend of subscribing to multiple standalone video-on-demand services—has reached its limit and will start declining in 2025. While standalone subscriptions are expected to decline, SVOD revenues may still rise as providers implement price hikes, tighten password-sharing policies, and enhance bundling options.

Deloitte forecasts that the market will stabilise with just two or three standalone direct to consumer SVOD players per market, complemented by aggregators. Echoing the traditional model of pay TV providers, Deloitte forecasts a resurgence of aggregation, where intermediaries—like telcos, pay TV platforms, and technology platforms—will consolidate multiple content sources into single offerings. This shift may reduce costs and create a more sustainable streaming ecosystem.

"This shift from a promising, user-centric model to a complex, fragmented experience has created a call for a return to aggregation, echoing the simplicity and accessibility that initially drove the streaming revolution,” says Kevin WESTCOTT, Deloitte Global Telecommunications, Media & Entertainment (TM&E) Sector Leader. “We now expect to see a new era of streaming, one that prioritizes user experience and innovation. The future of AI-powered streaming lies in platforms that can anticipate individual preferences, deliver tailored content, and blur the lines between traditional viewing and interactive experiences."

About this report

Deloitte Global’s annual TMT 2025 Predictions report provides an outlook on technology, media and telecommunications trends that may disrupt and transform the business and consumer ecosystems worldwide. Visit www.Deloitte.com/predictions.

Additional predictions found in the Deloitte Global 2025 TMT Predictions report: silicon chips revolutionize AI efficiency, deep fakes present growing legal and ethical challenges, GenAI adoption in media and gaming faces caution, edge computing accelerates enterprise AI, and stadium infrastructure reshapes urban development.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organisation”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities, each of which are separate and independent legal entities, provide services from more than 100 cities across the region, including Auckland, Bangkok, Beijing, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organisation”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser.

No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.

© 2024 Deloitte Southeast Asia Ltd.