Where AI is headed in 2026 (foundationcapital.com)

In a recent analysis, Ashu Garg outlines significant trends and predictions for AI's evolution by 2026, reflecting on how prior forecasts have fared. Key developments include the rise of reasoning models and compound AI systems, exemplified by OpenAI's innovative strategies that allow models to "think longer" and collaborate in orchestrated systems. This shift indicates a move away from isolated models and towards integrated solutions, a trend that's reshaping software economics as services delivered through AI take precedence in B2B investing. Looking ahead, Garg highlights the importance of making AI agents integral to business workflows, capturing decision-making context to create "context graphs" that enhance operational efficiency. However, this evolution comes with heightened security concerns, pushing organizations toward zero-trust principles for AI architectures. As these agents become commonplace, startups poised to excel in capturing and leveraging real-time context will challenge established players, leading to a more competitive landscape. The anticipated challenges for incumbents in maintaining control and access in an increasingly agentic marketplace will also drive tighter regulations and potentially reshape customer engagement strategies, marking a critical juncture in AI's trajectory.