Tariff pressures reshape tech investment: Sector leaders and digital momentum
Tariffs are one of several forces shaping technology and AI investment, with some sectors accelerating digital transformation while others take a more measured approach
Tariffs continue to influence the technology investment landscape for US organizations, but the results of our most recent tariffs survey reveals a complex picture.1 Among respondents, 39 percent noted that investments in new technology, research and development (R&D), or product development were impacted by tariffs, while 28 percent highlighted the effect on investments in artificial intelligence (AI) and machine learning (ML).
These figures suggest that while tariffs are a meaningful catalyst for change, they are not the sole driver of digital transformation. Instead, organizations are responding to a convergence of pressures—including supply chain complexity, regulatory shifts, and the need for greater resilience. For many, digital transformation is becoming a strategic imperative, but the pace and scale of investment vary widely.
Technology investment moved unevenly, but the direction was clear: AI, automation, and better data to de-risk trade.
Timothy Haley
Managing Director, Data Scientist, KPMG US
Sectoral differences are especially pronounced. The technology sector stands out, with 71 percent of executives surveyed reporting that tariffs have most significantly affected investments in new technology, R&D, or product development. In the natural resources sector, 69 percent pointed to investments in AI and ML as the most impacted. These sectors are setting the pace for digital adoption, often establishing benchmarks for others to follow.
To manage the increased workload and complexity caused by new tariff policies, nearly half (48 percent) of respondents said they are investing in new technology and tools. This trend is particularly strong in the natural resources sector, where 87 percent are making such investments. Automation is also a key strategy: 60 percent of organizations are leveraging automation and technology, including robotics and self-service tools, to reduce the burden of labor-intensive service models. The automotive (70 percent), industrial manufacturing (68 percent), and technology (67 percent) sectors are leading these efforts.
AI is playing an increasingly important role in tariff response strategies. Predictive analytics for demand forecasting (53 percent) and generative AI (GenAI) for strategic scenario modeling, trade policy simulation, or trade impact analysis (51 percent) are the top capabilities being implemented in response to tariffs. In the technology sector, 47 percent of respondents are using AI-driven inventory optimization to minimize capital tied up in tariffed components.
However, the survey also shows that transformation is not uniform. While 44 percent of respondents reported that tariffs have significantly or moderately influenced their AI adoption, this means that more than half have not experienced a major shift. Sectoral differences persist: Half of natural resources respondents noted a moderate influence on their AI adoption strategy, while 37 percent of respondents from the retail sector do not foresee GenAI influencing their tariff response.
Challenges remain. Over a third (38 percent) of respondents cited data quality or integration as key obstacles in managing tariff-related issues, particularly in natural resources, oil and gas, and chemicals. Only 15 percent overall—and 27 percent in the technology sector—said inadequate data infrastructure affected their ability to respond effectively.
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In summary, the September survey underscores that digital transformation is gaining momentum as organizations adapt to tariff pressures and other external disruptions. While some sectors are moving quickly, others are taking a more measured approach. Tariffs are one of several factors accelerating change, but the broader trend toward digitalization is clear: organizations that invest in technology, AI, and automation are better positioned to build resilience and drive future growth.
Footnotes
1 In September 2025, KPMG surveyed 300 US senior executives in various functions about their views on the US proposed tariffs and their effect on their company and industry.
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