Nashville, Tenn., March 06, 2025 (GLOBE NEWSWIRE) — Business executives in the technology and healthcare IT industries confront both new potential and problems in the areas of cybersecurity, audit, taxation, and AI-driven business intelligence as 2025 approaches. The top five trends influencing the sector are discussed by national experts from LBMC, giving leaders practical advice on how to handle the changing technology and regulatory environment.
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: The New Normal for IT Compliance
IT leaders must intensify their risk management tactics in light of the growing threat of AI-powered cyberattacks. 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.
“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.
“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 Jon Hilton, LBMC Shareholder and AI Practice Leader.
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.
Preparing for 2025: What IT Leaders Need to Do Now
The convergence of regulatory changes, cybersecurity threats, and AI-driven transformation demands a proactive approach. LBMC offers strategic advisory services to help Healthcare IT and Technology executives mitigate risks, optimize tax strategies, and harness AI for operational excellence.
Learn more about business trends in technology and how your organization can adapt by downloading our 2025 Business Outlook Report today.
For more insights or to connect with LBMC’s healthcare industry experts, visit our website.
About LBMC
LBMC is one of the Southeast’s largest accounting and business consulting firms and an Accounting Today Top 35 Firm in the Nation serving more than 11,000 clients with diverse needs across a spectrum of industries. Primary client groups include privately-owned and private-equity-backed middle market companies in the healthcare, manufacturing/distribution, real estate, and technology spaces. At the forefront of innovation, LBMC leverages advanced business intelligence and AI technologies to drive growth, efficiency, and strategic insights for our clients. Founded in 1984 as a traditional accounting firm, LBMC today is an industry leader in audit, tax, advisory, technology, human resources, and wealth advisory services for businesses and individuals. LBMC has more than 900 team members, with offices in Nashville, Chattanooga, Knoxville, and Memphis, Tennessee; Louisville, Kentucky; and Charlotte, North Carolina and remote offices. For more information on LBMC’s experts and comprehensive services, visit our website or call 615.377.4600. Discover career opportunities or learn more about how LBMC’s services and culture can support your business goals. Connect with us on LinkedIn for the latest insights on talent, client engagement, and business growth.
- 2025: The New Reality for Healthcare IT and Technology