What's next for AI? Predictions for 2026

2026 Predictions: Artificial intelligence

In 2025, AI agents were a hot topic in the world of data and analytics. But by 2026, the initial euphoria will subside and give way to a more practical focus on AI governance, skills development and the use of agents for routine tasks. The excitement about the possibilities of AI will give way to the reality of its everyday applications. Forrester predicts the following for 2026:

• Companies will postpone 25% of their AI spending until 2027 The value of AI remains elusive: Less than a third of companies can directly link the benefits of AI to profit and loss changes. As a result, CFOs will be increasingly involved in AI investment decisions in 2026. These more finance-oriented processes will slow down the introduction of AI systems and stop many proof-of-concepts, leading to a shift of 25% of planned spending into 2027.
• The fragmentation of the market will force companies to create "agent platforms". Hyperscalers and providers of data platforms and automation solutions cannot yet lay claim to dominance in the field of agent-based AI. In 2026, the large number of providers will lead to most companies building modular AI agent architectures. These so-called agent platforms will control and orchestrate the fragmented AI agents and enable complex multi-agent scenarios.
• 60% of Fortune 100 companies will appoint a head of AI governance. Due to the growing complexity of regulation, somewhat due to US legislation and the EU AI Act, around 60% of the Fortune 100 will introduce their own AI governance management by 2026. Companies such as Sony, Bank of America and UBS have already taken this step.

Sudha Maheshwari, VP Research Director at Forrester, comments: "Every bubble bursts at some point. In 2026, AI will lose its luster and exchange its crown for a hard hat. Companies' concerns about ROI will outweigh vendors' hype. In the face of this market correction, companies will prioritize functionality over brilliance. CFOs will become more involved in AI deals, companies will spread their investments across different agent ecosystems and redeploy staff as AI agents take over routine work. Smart companies will invest in AI governance and AI skills training to minimize risk and steer their AI course step by step."

2026 Predictions: Europe

Geopolitical tensions, ongoing uncertainties and new legislative initiatives - including the European Green Deal and the introduction of the EU AI Act - will deter European companies from experimenting with high-risk use cases. This will lead to further reliance on US hyperscalers such as AWS, Microsoft Azure and Google Cloud.
Further results of the Forrester study:

• Daily use of generative AI by European consumers will double, but companies lag behind the US. As AI becomes ubiquitous, daily use by consumers will double in most European countries by 2026. Due to stricter EU regulations and less mature AI skills, European companies will continue to lag behind the US in the adoption of AI technologies. The UK is an exception here: with looser regulations and fewer language barriers, it will break both trends.
• Defense spending will lead to a 20% increase in technology budgets for critical infrastructure operators in the EU. In June 2025, NATO member states pledged to increase their defense spending to 5% of GDP. Of this, 1.5% is to flow into "enabling" infrastructure. Forrester predicts that public institutions and critical infrastructure operators will see their technology budgets increase by around 20% in the coming year.
• The UK's AI strategy will boost public sector productivity but undermine trust in government. The UK government's enthusiasm for US AI technologies - for example through partnerships with Anthropic and OpenAI - its refusal to sign international agreements on AI governance and its disinterest in binding regulation will weaken the public's trust in government.

Dane Anderson, SVP, International Research & Product at Forrester, comments: "The European Union is working hard to become more competitive and reduce its dependence on global technology infrastructure. In reality, however, ongoing uncertainties and operational constraints will force European companies to adopt more pragmatic strategies in both the short and long term. Forrester's forecasts are designed to help European executives analyze the key dynamics and emerging trends of the coming year. These insights will enable them to prepare for future challenges and seize new opportunities for growth and success in 2026."