We’ve all witnessed what can only be described as a juggernaut of innovation over the past three years. First came generative AI with the launch of ChatGPT in late 2022, followed shortly thereafter by Google’s Gemini. Two years after that, the world was introduced to agentic AI, and this was widely adopted by businesses and consumers last year. In fact, research suggests that as many as 58% of employees are now using AI agents.
Fast work, indeed.
So where does AI and the tech industry go from here? Aside from scaling adoption, how will AI evolve in 2026, and more broadly, how can the tech industry prepare for success?
Four AI predictions for the year ahead:
1. Normalising AI as another employee
Most business leaders currently think of agentic AI as a product but over the course of 2026, managers will start to view these agents as additional team members who can perform tasks to the same standard as a human – and in some cases, to a better standard. As a result, we’ll see a shift towards employees assuming the role of ‘AI supervisor’, overseeing prospecting agents who operate as sales reps, and QA agents who lead automated product testing.
2. Deeper AI knowledge
AI is becoming more intelligent all the time, which supports deeper learning and hyper-personalised experiences. Many technology companies are now building their product strategies around this deeper knowledge. AI was still fairly horizontal last year. It knew a little bit about almost everything. But in 2026, the best AI tools will start to provide deeper knowledge – and this vertical depth presents huge opportunities for people and business.
3. Differentiation on distribution
One thing that will remain in 2026 is the value of community and human relationships. In fact, these will become the biggest competitive moat for tech companies over the next few years as the industry reaches parity in product innovation terms. When this happens, tech providers won’t be able to compete on product alone and so distribution will become the main differentiator. In this environment, those with the strongest networks, communities, trust, and human-centric ethos will win – and that makes a strong case for investing in brand and customer experience this year.
4. The end of the LLM-wrapper gold rush
Dozens of point solutions were launched to market last year. Built on the same models, offering the same features and user experience, these LLM-wrapper solutions offer very little depth and zero defensibility. Packaged up with over-inflated features and pretty UIs, the limitations of these surface-level solutions will become more transparent this year, and these companies will experience rapid decline.
So as AI becomes evermore integrated and intelligent, how will this impact the business and product strategies of tech companies in 2026?
Four predictions for the UK tech industry:
1) Building for proof, not hype
Technology vendors will prioritise products that deliver real business impact and which provide a clear line of sight to value. At the same time, they will double down on painkillers and cut anything that’s a vitamin. We’ll also see earlier pressure-testing of renewals and more moat-building around data, workflow and proprietary insights. Ultimately, building for proof, not hype, will be the goal. And besides creating positive differentiation, this approach will also help vendors to prepare for a more cynical buyer.
2) Investor sentiment: optimism and scepticism
Technology investors will be both more optimistic but more sceptical this year. Alongside growth potential, VCs and investors will want to see more evidence of contract renewal rates. They will also expect to see proof that customers are willing to pay for tangible outcomes, especially when it comes to skills, productivity, and workflow automation.
3) Who survives?
Tech vendors that solve an actual business problem will set themselves apart in this saturated and economically tough climate. These companies will create and deliver measurable value in the form of time-savings, risk reduction, and revenue generation. Their technology will help people to do their work, rather than just consume AI for AI’s sake.
4) Who thrives?
To thrive in this environment, though, vendors will need to do all of the above as well as owning proprietary data, integrating workflows, and presenting clear ROI stories. Technology platforms that become an integral part of how teams operate, rather than a separate tool that sits outside their flow of work, will win – and that’s vertical AI SaaS; technology that delivers a deeper level of intelligence and operational support.
The year ahead presents significant opportunities to enhance AI functionality, integration, and intelligence while adapting at speed to support changing market and customer needs. But more than anything, when it comes to product development, there’s one question that every business technology leader must ask themselves on repeat: Will it deliver value by helping people to do their job better? Answer yes to that, and growth will follow.
