Venture Capitalists foresee a surge in enterprise AI spending in 2026, but this investment will be concentrated among fewer vendors. Companies are expected to move away from experimenting with multiple AI tools and instead focus on expanding relationships with a smaller number of proven providers. This shift could create a challenging environment for AI start-ups, with success favouring those demonstrating strong differentiation and proprietary data.
Industry experts predict boards will demand tangible returns on AI investments, leading to a reassessment of AI strategies. Companies will likely prioritise practical deployments and scale back experimental spending without clear links to revenue or efficiency gains. This pragmatic focus will drive investment towards AI products that deliver demonstrable results, while those that don't may see budgets decline sharply.
CEOs are also prioritising AI augmentation and upskilling talent, which indicates a dual focus on automation and human capabilities. The majority of CEOs anticipate AI will drive hiring, particularly for entry-level and senior leadership positions. This reflects a reshaping of the workforce to accelerate AI return on investment and achieve business priorities.
