What happened
Venture Capitalists predict enterprise AI spending will surge in 2026, yet concentrate among fewer vendors. Companies are shifting from experimenting with multiple AI tools to expanding relationships with a smaller number of proven providers. This prioritises practical deployments and demonstrable results, scaling back experimental spending lacking clear revenue or efficiency links. CEOs also prioritise AI augmentation and talent upskilling, anticipating AI will drive hiring for entry-level and senior leadership positions.
Why it matters
The predicted concentration of enterprise AI spending among fewer vendors introduces a significant constraint on procurement and IT strategy. This raises due diligence requirements for vendor selection, long-term commitment, and integration, reducing flexibility in exploring diverse AI solutions. The burden falls on procurement, IT architecture, and security teams to validate vendor stability, security, and interoperability. HR and training departments face increased demands to align workforce upskilling with specific AI augmentation strategies.
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