VCs predict enterprises will spend more on AI in 2026 — through fewer vendors (techcrunch.com)

Venture capitalists predict a significant shift in enterprise spending on AI by 2026, moving from a phase of experimentation to concentrated investments. A recent survey of 24 enterprise-focused VCs indicates that companies will increase their AI budgets, but primarily for a select few vendors whose products demonstrate clear value. Andrew Ferguson from Databricks Ventures emphasizes that enterprises currently trial multiple tools for similar applications, but as they identify effective solutions, they will rationalize overlapping platforms, thus redirecting funds toward fewer, proven technologies. Additionally, experts highlight the growing importance of safety and oversight in enterprise AI usage. Scott Beechuk from Norwest Venture Partners notes that organizations will prioritize investment in foundational technologies that ensure the dependability of AI systems. Harsha Kapre of Snowflake Ventures predicts that spending will focus on strengthening data foundations and optimizing models post-training. However, this evolving landscape poses challenges for startups, particularly those offering services similar to major players like AWS or Salesforce, who may face funding constraints as competition intensifies and enterprise preferences narrow. If these trends hold true, 2026 could witness increased budgets for a limited number of AI solutions while sidelining many startups.