As I wrote last week, Deloitte’s 2026 Technology, Media & Telecommunications (TMT) Predictions report emphasizes how industries are narrowing the gap between the promise of AI and its real-world implementation.
Deloitte predicts movement in 2026 towards getting AI to scale, aided by the symbiosis AI shares with the technology and telecom sectors:
TMT [Tech, Media & Telecom] is poised to not merely become larger than any other industry, but larger than all other industries combined — both in terms of value and contribution to economic growth. One reason for that is that other industries use TMT — tech and telecom specifically — to power their own AI innovations, and TMT happens to be the hardware, software, and services provider in the AI gold rush.
The 13 topics discussed in Deloitte’s 2026 TMT Predictions report collectively highlight AI’s infrastructure demands, sovereignty concerns, media innovation, and consumer shifts.
- AI Disrupts Search
- Deloitte predicts daily AI usage within search will be three times greater than standalone AI tools.
- Embedding generative AI into search engines will reshape how consumers access information, making AI invisible yet omnipresent.
- Implication: Control of search platforms becomes a critical gateway for AI adoption.
- More Compute for AI, Not Less
- Running AI models (inference) will account for two-thirds of AI compute by 2026.
- Most inference will remain in data centers, not on consumer devices.
- Agents Assemble: Agentic AI
- The agentic AI market could reach $45 billion by 2030.
- Enterprises must orchestrate autonomous agents effectively to unlock productivity gains.
- Challenge: Governance, trust, and interoperability remain barriers.
- Hardware Heats Up
- AI’s compute demands are driving semiconductor innovation.
- Specialized chips, chiplets, and cooling technologies are critical to sustaining growth.
- Implication: Hardware bottlenecks could slow AI adoption if supply chains falter.
- Tech Sovereignty
- Countries and blocs are racing to build sovereign AI and tech infrastructures.
- Motivations include geopolitical tensions, supply chain resilience, and data privacy.
- Implication: Businesses must adapt to fragmented global compliance landscapes.
- Mythbusting Robots
- Deloitte challenges assumptions about robotics adoption.
- While robots are advancing, human labour remains central in many industries.
- Implication: Automation will augment rather than replace most workforces.
- Satellites and Connectivity
- Satellite technology continues to expand global connectivity.
- Deloitte highlights new business models and partnerships driving growth.
- Implication: Telecoms and governments must integrate satellite networks into broader infrastructure.
- Podcasting Update
- Podcasts remain resilient, but growth is shifting toward shorter, more interactive formats.
- Monetization strategies are diversifying beyond advertising.
- Implication: Creators must adapt to evolving listener behaviours.
- Microseries (Microdramas)
- Short-form serials designed for smartphones are booming.
- In-app revenue is projected to double from $3.8B in 2025 to $7.8B in 2026.
- Implication: Media companies must embrace mobile-first storytelling.
- Creative Offerings for Mobile
- Some consumers value rewards and perks more than network upgrades.
- Telecoms must rethink their value proposition, focusing on bundled experiences and loyalty programs.
- Implication: Differentiation shifts from speed to creativity.
- Software Evolution with AI
- Generative AI is increasingly embedded into productivity suites, messaging apps, and enterprise software.
- Standalone AI apps may fade as integration dominates.
- Implication: Software vendors gain leverage as AI gatekeepers.
- Semiconductors and Chiplets
- Modular chiplet architectures are reshaping semiconductor design.
- Benefits include improved yields, efficiency, and scalability.
- Implication: Chiplets become foundational for AI workloads.
- Media Boundaries Blur
- The lines between TV, streaming, and user-generated content are dissolving.
- Generative AI accelerates content creation, but authenticity and ethics remain pressing concerns.
- Implication: Media companies must balance innovation with credibility.
Strategic Implications
- For Businesses
- Embed AI in platforms rather than standalone tools.
- Invest in sustainable compute infrastructure to meet AI demands.
- Orchestrate agentic AI with governance frameworks.
- Adapt to sovereignty pressures by aligning with local regulations.
- Reinvent media models for mobile-first, short-form formats.
- For Consumers
- AI Everywhere: Expect AI to be woven into daily apps.
- Content Explosion: Microseries and podcasts evolve toward shorter, interactive formats.
- Trust Matters: Authenticity and transparency in AI-generated content are critical.
Deloitte’s TMT Predictions 2026 highlight a maturing AI ecosystem where integration, infrastructure, and sovereignty dominate. The 13 topics collectively show that the hype around AI is giving way to practical realities — compute bottlenecks, governance challenges, and consumer shifts. Media and telecom industries are adapting to short-form, mobile-first, and reward-driven experiences, while semiconductors and sovereignty strategies underpin the next wave of innovation.
In yesterday’s Financial Post, Daniel Schwanen of the CD Howe Institute warned about excessive precaution in the development of Canada’s AI strategy. “Governments can open doors, foster strategic initiatives and partnerships, and even in some cases directly support initiatives that can build capacity and unlock their countries’ comparative advantages. But in all cases, this is also accompanied by removal of unnecessarily burdensome regulations to allow the private sector to thrive.” He warns Canadian regulators to avoid being bound by “the ‘dead weight of dogma’ — prioritizing the prevention of everything that could go wrong rather than facilitating what might be successful.”
Earlier this week, an article in the Globe and Mail discussed complaints that the glacial pace of government action is “woefully behind the speed of AI, where new developments happen weekly.”
What is the best way for the government to stimulate AI development, and adoption, by Canadians? Will Canada’s AI strategy focus on incentives to innovate, and resist the urge for overly prescriptive regulations?