Happy New Year! Congratulations you made it to 2026!

I’ve had a look into my crystal ball to make a few predictions for the year ahead.

Prediction #1: The AI industry will consulate

In 2025 we countless AI based startups appeared. While a few have successfully found a place in the market, many others have struggled. In 2026, I think we will see many of these startups fail, while a small number will be acquired by larger players in the market. At the same time, the big players will simply build functionality into their AI platforms that replace the need for point solutions. Today is a bit like the gold rush, where some people are trying to find one nugget, but the big players are scaling to collect all of the gold dusty!

Prediction #2: AI will continue to embed in our work

Organisations will continue to invest in AI tools for their teams, with increasing focus on unlocking knowledge within their vast quantities of content and data. While 2025 was the year many got started, 2026 is when they will want to see a return on the investment they are making. Agents will help drive the efficiency gains they are looking for. This also creates risks that mean you should have good governance and policies in place for AI use. Tools like Copilot can access anything you have permission to. That includes items shared with you (or everyone), old out of data content you have forgotten about and things you never knew you had access to in the first place.

Prediction #3: Data privacy breaches will increase

While organisations will continue to invest in cybersecurity, they will also face pressure to make AI tools and self-service access to content and data a priority. Vibe coding will start to become more mainstream, but often in environments where mature testing and quality processes don’t exist. This will inevitably lead to some organisations making decisions and building solutions that expose our data. Focus on protecting your data sources, so that poorly behaved applications don’t have open access to everything. Implement Data Loss Prevention (DLP) and Sensitivity Labels and monitor your environment.

Prediction #4: Data sovereignty concerns will increase

There is growing concern in Europe and other regions that US based cloud providers have the ability to provide the US government access to information in their data centres. While this hasn’t happened, there is considerable concern, especially for information requiring high levels of security such as aerospace, defence and government services. Microsoft and other cloud providers are offering sovereign cloud services but there is also a strong drive, especially in Europe to build alternative infrastructure.

Prediction #5: Someone will ask if SharePoint is still relevant

I couldn’t leave my prediction list without mention SharePoint. A question I was asked many times in 2025 was “Is SharePoint still relevant?”. In my opinion, the answer is a big YES. SharePoint will hold more content for AI than any other service or platform. The role of the SharePoint Administrator will expand into areas related to AI, such as creating and managing Agents. They will also be responsible for security and privacy. Governance of Microsoft 365 will become even more important this year. I hope their bosses give them the licensing and tools to do this job well.

Develop your skills and knowledge

There is one thing that will be true for 2026 and that is the need to develop your AI skills, regardless your role. Senior leaders must develop their understanding of AI and the strategic implications for the industries they work in. Technologies must understand how to governance AI tools, data sources and content. Everyone should develop their AI skills from simple productivity, working with Agents and understanding the good, bad and ugly that comes with AI in their lives (work and personal).

If you don’t know where to start with your learning, visit the Microsoft AI Learning Hub and visit the Global AI Community to find local events.

I hope 2026 is a great year for you. May it be filled with success and growth!