1. Agentic AI will hit a home run
“In 2026 we’ll see Agentic AI pilot projects evolve into mainstream adoption across UK enterprises. The psychological shift, driven by increasing levels of trust in the ability of Agentic AI, will see more and more complex processes being handled or supported by them, with speed, accuracy and ever-improving user-experience. For example, we could see digital agents managing complex billing and tariff queries for utilities providers, generating comprehensive knowledge articles and self-help content to deflect future queries and autonomous systems streamlining hospital appointment scheduling. Crucially, this won’t be about replacing humans entirely. Agentic AI will form part of a true hybrid workforce, supporting human agents by taking on repetitive tasks and freeing them to focus on the most complex, empathetic, and human-centred interactions. As consumers experience the pace and ‘always-on’ 24/7, 365 days a year, we’ll witness a cultural normalisation of AI-driven interactions, fundamentally changing how people engage with businesses and public bodies.”
2. Metaverse will fail to make ground as quantum and AGI rewrite the playbook
“The metaverse in 2026 will remain the most overhyped technology across enterprises. Its exciting promise of immersive virtual corporate worlds will continue to outpace practical, scalable business adoption. Most use cases will stay niche, with real value limited to specialist areas like surgical training and field-based maintenance, repair and overhaul tasks. In contrast, the most impactful, yet potentially under-recognised, technological advancement will be the emergence of Artificial General Intelligence (AGI), capable of synthesising insights from finance, operations, and accurately predicting customer behaviour, to deliver holistic strategic recommendations. Neuromorphic computing capabilities will enable real-time AI processing in end-point IoT devices, massively disrupting and accelerating concepts like predictive maintenance in manufacturing and personalisation in retail. Meanwhile, quantum computing poses a seismic challenge, its ability to break traditional encryption will force businesses to adopt quantum-safe cryptography and rethink security strategies from the ground up.”
3. 2026 will be the year governance defines AI success
“The defining cybersecurity challenge in 2026 won’t just be AI-powered attacks, it will be how organisations govern their own adoption of AI. As enterprises embed AI deeper into operations, boards will come under mounting pressure to implement robust governance frameworks that go beyond ethics and compliance. Transparency in how AI systems make decisions, manage data, and respond to threats, will become a regulatory and reputational imperative. Risk management will evolve from reactive controls to proactive oversight, ensuring AI doesn’t introduce hidden vulnerabilities or amplify existing ones. The organisations that lead will be those that treat AI governance as a strategic priority, embedding resilience into every layer of their autonomous digital infrastructure.”
4. Data will be the super unleaded fuel for businesses
“2026 will show that the biggest barrier to effective enterprise AI will be the persistent myth that AI is ‘magic’. The reality is far more grounded because AI’s value remains inseparable from the quality of the data it consumes. Organisations that treat data management as an afterthought will find their AI initiatives falter, while those who invest in high-quality, well-curated and accessible data will unlock superior outcomes and competitive advantage. Think of data as the ‘super unleaded’ fuel for AI, better quality enables more complex, higher-performing solutions, whereas lower quality fuel will only restrict progress. The year ahead will see a growing recognition that successful AI isn’t solely about clever algorithms, but about disciplined data stewardship.”
5. IT leaders will walk the complexity tightrope
“In 2026, the decisions IT leaders make will be shaped by a concoction of economic, regulatory, and geopolitical pressures. Regulations like ISO 42001 and the EU AI Act will raise the bar for governance and transparency, demanding robust frameworks for responsible AI. On top of this, most organisations will favour incremental innovation, automating existing processes over radical transformation and the re-imagination of processes, reflecting a cultural hesitancy to embrace wholesale technology-enabled change. Talent shortages in digital skills, especially in AI and cybersecurity, will intensify, while concerns over technology sovereignty and reliance on US-based providers will push data residency and contractual stability to the top of the agenda.”