AI monetization, persistent supply chain disruption, digital sovereignty and physical AI emerge as four forces shaping the next phase of technology competition

In 2027, the technology industry will face a new test: turning years of rapid investment and innovation into sustainable value. According to Omdia, the focus is shifting from what technology can do to what it can deliver – economically, operationally and competitively.

Drawing on research and expertise from across the organization, Omdia has identified four forces shaping 2027: AI: Rebalancing from Investment to Monetization; Supply Chain: Crisis is the "New Normal"; Digital Sovereignty: Independence Comes at a Cost; and Physical AI: Intelligence Escapes the Screen.

Together, these forces point to a shift in which AI must increasingly demonstrate real returns, businesses must compete through persistent supply disruption, organizations must weigh greater technological control against its costs, and intelligence moves beyond software and screens into the physical world.

AI: Rebalancing from Investment to Monetization

The AI technology arms race will continue, but the measure of success is changing. With 59% of organizations expecting their AI budgets to increase by 10% or more in 2027, pressure to demonstrate tangible returns will intensify. Enterprises will increasingly judge AI investments by ROI and productivity gains rather than technical superiority alone. Across infrastructure, software, services and devices, attention will shift to where AI creates value, how that value is captured and which business models can turn adoption into sustainable returns.

Supply Chain: Crisis is the "New Normal"

Technology companies can no longer assume disruption will end and supply chains will return to normal. AI infrastructure demand, component constraints, geopolitical pressures, energy requirements and macroeconomic uncertainty are combining to create persistent volatility. Already hardware delays are impacting 60% of PC channel partners, highlighting the operational pressures businesses continue to face.

Navigating these pressures will increasingly become a measure of competitive strength. Companies that build resilience into their operations will be better placed to turn disruption into advantage, while less agile competitors risk losing ground.

Digital Sovereignty: Independence Comes at a Cost

The question is increasingly shifting from whether organizations need greater digital sovereignty to how much control they actually need – and what they are prepared to pay for. More than 100 countries are now pursuing digital sovereignty initiatives, reflecting the growing importance of control over data, infrastructure, AI and digital supply chains.

But complete technological independence will rarely be practical or necessary. Organizations will instead need to determine what they must control, where partnerships remain essential and where greater sovereignty creates enough business value to justify the additional cost and complexity.

Physical AI: Intelligence Escapes the Screen

AI’s move beyond software and screens and into the physical world is accelerating. Advances in AI, edge computing, sensors and connected hardware are creating intelligent systems capable of perceiving, learning and responding to their surroundings. Global humanoid robot shipments alone are expected to exceed 700,000 units by 2030, reflecting the growing investment and momentum behind physical AI.

The opportunity extends far beyond humanoid robots, spanning vehicles, buildings, energy infrastructure, workplaces and connected consumer environments. As intelligence becomes embedded in the physical world, organizations will also face new questions around governance, safety, liability, integration and trust.

Commenting on the launch of Omdia’s Forces Shaping 2027, Omdia Chief Research Officer Evan Kirchheimer said: "The defining technology story of 2027 will not simply be what comes next, but what happens as the investment and innovation of recent years meets economic and operational reality.

"AI needs to demonstrate returns. Supply chain disruption needs to be planned for rather than waited out. The perceived imperative of digital sovereignty brings difficult choices around cost and access. And as AI moves into the physical world, businesses face an entirely new set of opportunities and responsibilities.

"What makes these forces particularly significant is how closely they are becoming connected. Decisions made in one area increasingly have consequences elsewhere, making it more important than ever for businesses to understand the wider technology landscape when deciding where to invest and compete."

The Forces Shaping 2027 program brings together Omdia research from across the technology ecosystem to identify and track the four forces expected to shape the year ahead. Launching with an e-book exploring each force and the research underpinning it, Omdia will continue to track how these forces evolve through its research and analysis throughout 2027, with AI-enabled access making it easier for clients to explore and navigate Omdia’s research.

ABOUT OMDIA

Omdia, part of TechTarget, Inc. d/b/a Informa TechTarget (NASDAQ:TTGT), is a technology research and advisory group. Our deep knowledge of tech markets grounded in real conversations with industry leaders and hundreds of thousands of data points, make our market intelligence our clients’ strategic advantage. From R&D to ROI, we identify the greatest opportunities and move the industry forward.

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Fasiha Khan: fasiha.khan@omdia.com