2026 tipped as make-or-break year for business AI adoption

Technology leaders expect 2026 to be a decisive year for artificial intelligence in business, as organisations shift from experimentation to scrutiny of concrete outcomes, process change and security exposure.

Senior executives from Avanade, Tech Mahindra and F5 said AI adoption will increasingly hinge on how well companies understand and redesign their workflows, manage data, and secure the interfaces that connect systems.

Mid-market strain

Mid-sized organisations spent much of 2025 grappling with the gap between AI ambition and operational reality, according to Avanade Chief Technology Officer Aaron Reich.

"2025 has shown many mid-market organisations that adopting AI is tougher than expected. AI did not stall because the technology was lacking. It stalled because most organisations did not have a clear enough picture of which business processes they should prioritise to work on and apply AI. Data was scattered, systems did not line up and teams struggled to explain their processes in a way that AI could actually use. Without that level of clarity, even good ideas struggled to land," said Reich.

"This becomes even more important in 2026 as AI agents Start to proliferate. More agents is not the answer but they will start to take on more digital labor. These tools rely on a detailed picture of how the organisation actually runs. They need to understand the steps people take, the judgement calls involved and the exceptions that shape real processes. The organisations that can uncover that reality and are prepared to reshape it will move forward. Those that can't, will struggle to scale AI no matter how advanced the model."

"Expectations from customers and partners will shift as well. They will want to understand how an AI reached a decision and where the data came from. Traceability will start to play a real part in who they choose to work with and who they feel they can trust."

"Workflows will evolve too. Business teams will start creating more of the tools and processes they rely on, while platform teams keep the standards steady. To make this work, organisations will need people in each function who understand the work well enough to guide adoption and teams who feel confident using AI in their day-to-day tasks."

"The priority now is to focus on the essentials that make AI work. Organisations need a clear view of their processes, teams that know how to apply AI in real workflows and confidence in the data that drives it, while allowing people to move away from repetitive work. Organisations that take these steps now will enter 2026 with confidence and a much stronger foundation for meaningful AI adoption," said Reich.

Redesigning work

Tech Mahindra Chief Technology Officer Sham Arora said boardrooms are starting to treat AI less as a cost-cutting tool and more as an instrument of organisational awareness and reinvention.

"The real value of AI isn't replacing people-it's giving teams better tools to do their jobs, solve problems, and make smarter choices. Because of this, as companies move into 2026, the ones that succeed will be those that use AI to become more aware and proactive, not just more efficient," said Arora.

"Automation has helped companies run faster and leaner, but AI is helping them think differently and be more inventive. Instead of just improving existing processes, AI is now being used to redesign how work gets done, by optimising existing processes and reimagining business models. This in turn will unlock new value streams and support better decisions across the business."

"Across industries like manufacturing, retail, financial services, and logistics, a common theme is emerging - growth won't come from cost-cutting. Companies will increasingly use AI as an early warning system, highlighting shifts in customer behaviour, predicting supply issues, and flagging operational problems before they escalate. When organisations can see what's coming and respond quickly, faster execution follows naturally. Companies will also use hybrid work-force - Humans and Agents working together, bringing new products, services and transformed experience that will give them distinct advantage over the ones that continue to think of traditional workforce and older ways of solving problems."

"The future will demand leaders who are comfortable making decisions in partnership with intelligent systems, employees who are equipped to work in AI-enabled environments and organisations that foster a culture of curiosity rather than fear," said Arora.

Security pressure

While organisations seek value from AI, they also face greater scrutiny of costs, risks and security, said Josh Goldfarb, Field Chief Information Security Officer at F5.

"Business leaders are growing tired of so-called 'AI hype'. The initial buzz which comes with any new, groundbreaking technology is quickly waning. 2026 will be a make-or-break year for AI. The C-suite expects to visibly see the business value for the amount of money being invested; if AI fails to deliver these tangible results, enthusiasm surrounding the tech will quickly diminish."

"For security professionals, APIs and API discovery are where AI becomes real. APIs enable different software components to communicate and transfer data. As a result, they are the key to turning theoretical AI into practical, usable applications and automating tasks across networks. In a security context, it is the API layer that is the connective tissue and thus requires protection, detection, response and remediation."

"Assigning more budget to API security and API discovery will be crucial to achieving better AI security in 2026. Otherwise, it won't be the year AI delivers value, it'll be the year cracks start to show," said Goldfarb.