Technology and healthcare IT leaders are navigating a rapidly changing environment shaped by AI adoption, cybersecurity threats, tax complexity, regulatory pressure, and evolving investment expectations. These forces are increasingly interconnected, requiring leadership teams to think about risk, technology, finance, and growth as part of one strategy.
Organizations navigating these shifts need more than awareness—they need a structured plan for adoption, governance, and execution. LBMC’s AI and generative AI strategy services help leadership teams identify high-value use cases, evaluate readiness, establish governance, and build implementation roadmaps aligned with business and risk objectives.
Five Technology Trends Shaping Audit, Tax, Cybersecurity, and AI
1. The Expanding Regulatory Landscape: State & Local Tax (SALT) Considerations
The rapid expansion of digital services compiled with expanded tax provisions has triggered heightened scrutiny by state and local taxing authorities. Healthcare IT and technology companies must stay ahead of the following:
- Increased enforcement of economic nexus laws for sales taxes, affecting remote software sales and cloud-based service providers.
- Growing obligations for sales tax collection by SaaS and PaaS providers as states refine taxability rules.
- Potential shifts in federal tax policy under the new administration that could impact R&D credits and digital taxation.
- Changes to the 2017 Tax Cuts and Jobs Act (TCJA) federal tax law that may affect tax depreciation, R&D expense amortization, and interest deductibility rules for technology companies.
Expert Insight: “Companies operating in multiple jurisdictions must proactively assess their exposure and update their compliance strategies to avoid unexpected tax liabilities and penalties,” says Leigh Ann Vernich, LBMC Senior Manager, State and Local Tax.
2. AI Risk and Cybersecurity Are Reshaping IT Compliance
IT leaders must intensify their risk management tactics in light of the growing threat of AI-powered cyberattacks. Security leaders should also account for AI workplace risks, including employees using unapproved tools, entering confidential information into public platforms, and creating new data-loss and governance challenges through everyday AI use.
These tactics include:
- Putting strong Zero Trust security frameworks in place to reduce breaches.
- Making sure publicly traded tech companies abide by the SEC’s new cybersecurity disclosure regulations.
- Regularly testing IT systems through technology audits and penetration testing activities.
- Strengthening adherence to applicable IT Compliance standards like HIPAA, HITRUST, and PCI to avoid expensive data breaches and sanctions.
For organizations already subject to formal assurance requirements, a structured approach to generative AI risk management can help connect AI-related controls to established frameworks such as SOC 2, including security, confidentiality, data protection, monitoring, and third-party risk.
“Cyberattacks leveraging AI are becoming more sophisticated, demanding companies prioritize security-by-design approaches,” states Stewart Fey, LBMC Cybersecurity Shareholder and PCI Practice Leader.
3. Using AI to Drive Competitive Advantage in Business Intelligence
Predictive analytics, financial reporting, and operational efficiency in IT companies are all being revolutionized by the rapid advancement of AI in business intelligence. Key trends include:
- The use of AI-driven automation in audit and tax compliance procedures.
- Real-time risk evaluations in financial forecasting and revenue recognition.
- New IRS rules pertaining to AI-generated tax positions that call for increased openness in automated compliance systems.
- Adherence to upgraded PCAOB audit criteria that emphasize internal controls and AI-driven financial reporting.
The growing use of AI in accounting is also changing how firms approach research, financial analysis, forecasting, audit support, and repetitive accounting tasks. The opportunity is significant, but organizations still need strong data controls, validation, and professional oversight.
“AI is no longer a futuristic concept—it’s a competitive necessity now. We are in the age of AI, and the competitive winners will be those who embrace and integrate it across all areas of their business. A wait-and-see approach will likely leave you further behind, making it much harder to catch up.” says LBMC.
4. Evolving M&A and Investment Trends in Healthcare IT and Technology
Private equity and venture capital investment in IT-driven healthcare and technology companies continue to surge. Key considerations include:
- Heightened regulatory scrutiny on mergers under the FTC’s new competition guidelines.
- Increased due diligence on cybersecurity vulnerabilities and data governance policies pre-transaction.
- Tax implications of international expansion amid shifting U.S. trade and tax policies.
- Potential limitations on Qualified Small Business Stock (QSBS) tax exemptions under new tax proposals, impacting startup valuations and investment structures.
- A changing investor landscape where firms are holding investments longer while expecting profitability sooner, posing challenges for early-stage companies in managing cash flows.
“M&A strategies must now account for regulatory and tax implications from day one to maximize value and mitigate risks,” advises Aaron Hale, LBMC Audit Shareholder and Technology Industry Leader.
5. The Washington Effect: Policy Shifts and Industry Impacts
Business executives in technology and healthcare IT should get ready for any policy changes that may occur under the new administration. These changes might include:
- A renewed drive for federal data privacy restrictions that affect cloud-based software providers.
- A possible increase in the Global Intangible Low Taxed Income (GILTI) tax rate, among other changes to business tax arrangements.
- Increased incentives for grants for AI innovation and cybersecurity initiatives.
- Internal Revenue Code Section 174 changes that currently require businesses to amortize R&D costs and necessitate careful tax planning to maximize deductions.
“Companies must stay engaged in policy discussions to anticipate regulatory shifts that could impact their growth strategies,” states Kyle Baldwin, LBMC Tax Shareholder and Technology Industry Leader.
What Technology Leaders Should Prioritize Next
The convergence of cybersecurity threats, regulatory change, AI adoption, and operational pressure requires a coordinated response. Technology and healthcare IT leaders should evaluate where AI can create measurable value, where new risks are emerging, and whether their current data and governance foundations are ready to support broader adoption.
LBMC’s Data and AI services help organizations improve data readiness, prioritize practical AI opportunities, establish governance, and implement solutions that support stronger decision-making, operational efficiency, and long-term growth.
Learn more about business trends in technology and how your organization can adapt. For more insights or to connect with LBMC’s technology industry experts, contact us.
