HowNow bets on vertical AI agents reshaping UK work

UK learning technology company HowNow expects artificial intelligence to become embedded in day-to-day operations in 2026, as businesses shift from experimental tools towards deeper, vertical AI systems and scrutinise return on investment more closely.

Nelson Sivalingam, Co-founder and Chief Executive of HowNow, said AI agents will increasingly sit alongside human staff in core workflows rather than operate as standalone software products.

"Right now we look at agentic AI as a product but over the course of 2026 and beyond, managers will start to look at these agents as team members who can perform different tasks. Humans will supervise prospecting AI agents who operate like an SDR and QA agents who take automated product testing to a whole new level - both job roles that only a human could have done in the past," said Sivalingam, Co-founder and CEO, HowNow.

HowNow develops workplace learning and knowledge tools that use AI to personalise content for employees. The company works with corporate customers that are adopting generative models inside training and workflow systems.

Sivalingam said he expects AI systems with domain-specific expertise to gain ground over generic tools.

"AI is becoming more intelligent all the time, which supports deeper learning and hyper-personalised experiences. At HowNow, we're building our product strategy around this deeper knowledge. Right now AI is still fairly horizontal. It knows a little bit about almost everything...next year, the best AI tools will start to provide deeper knowledge - and this vertical AI piece presents huge opportunities for people and businesses alike," said Sivalingam.

Shift in competition

The HowNow chief executive said product design alone will not sustain an edge in the next phase of the AI and software market. He expects distribution, brand and user trust to separate winners from the rest as underlying technologies converge.

"One thing that will remain next year is the value of community and human relationships. In fact, these will become the biggest competitive moat for tech companies over the next few years as the tech industry begins to reach parity in product innovation terms. When this happens, tech companies won't be able to compete on product alone and so distribution will become the main differentiator. In this landscape, those with the strongest networks, communities, trust, and human-centric ethos will win - and that makes a strong case for investing in brand and customer experience next year," said Sivalingam.

He also predicted a consolidation in the crowded market for lightweight generative AI tools built on large language models. Many of these products repackage similar underlying systems with minor variations in interface and workflow.

"We've seen dozens of point solutions come to market this year. Built on the same models, offering the same features and UX, these LLM-wrapper solutions offer very little depth and zero defensibility. Packaged up with over-inflated features and pretty UIs, the limitations of these surface-level solutions will become more transparent next year - and these companies will experience rapid decline as a result," said Sivalingam.

Boardroom priorities

Sivalingam said he expects boards, finance leaders and founders in the UK and beyond to continue tightening scrutiny on software budgets in 2026.

"Prioritise products that deliver real business impact and which provide a clear line of sight to value. At the same time, cut anything that's a vitamin and double down on painkillers. Pressure-test renewals early and build a moat around data, workflow and proprietary insights. Tech companies should also prepare for a more cynical buyer, which means building for proof, not hype, will be a key differentiator," said Sivalingam.

He expects this stance from buyers to shape investor behaviour in the sector.

"Tech investors will be more optimistic but also much more sceptical next year. Alongside growth potential, investors will want to see more evidence of contract renewal rates. They will expect to see proof that customers are willing to pay for tangible outcomes, especially around skills, productivity, or workflow automation," said Sivalingam.

Survival and growth

Sivalingam said vendors that address clear operational problems and provide measurable gains will be best placed in a challenging UK tech and macroeconomic environment.

"Technology providers that solve an actual business problem will survive the tough economic climate and saturated market. These companies will create and deliver measurable value such as time-savings, risk reduction, and revenue generation. These platforms are those that help people to do their work, not just consume AI for AI's sake," said Sivalingam.

The HowNow chief executive said the strongest performers will combine that focus on concrete outcomes with a data and workflow advantage inside customer organisations.

"To thrive in this environment, tech companies will need to do all of the above whilst owning proprietary data, integrating workflows, and presenting clear ROI stories. Tech platforms that become an integral part of how teams operate, rather than a separate tool that sits outside their flow of work, will win - and that's vertical AI SaaS; technology that delivers a deeper level of intelligence and operational support," said Sivalingam.