Are You Ready For 2026?

A sneak peek into the coming year’s tech trends can help you spot the opportunities and threats, and plan for success…

The forecasts are rolling out, and 2026 looks set to be another year headlined by AI. However, it is also clear that AI cannot continue its run without more processing power, reliable telecommunication, sustainability initiatives, renewable energy, and other supporting enablers. As a result, we are also going to see every tech sector upping its game in the coming year. Here is our take on the likely technology trends of 2026, based on research reports from trusted sources like Gartner, McKinsey, and Deloitte, alongside expert opinions shared through EFY magazine and industry conferences.

Artificial intelligence – more real than it sounds

• The focus is shifting from text-based large language models (LLMs), which function like conversational search engines, to AI agents that can understand, plan, decide, collaborate, and execute tasks autonomously! Deloitte predicts that the autonomous AI agent market could reach $8.5 billion by 2026 and $35 billion by 2030.
• Using disparate AI models for varied functions often increases complexity, botches up customer experience, and slows AI adoption among mid-sized organisations. With the emergence of data platforms (data productisation) and open frameworks like the model concept protocol, models and agents are now able to safely and seamlessly access shared context and metadata across APIs, products, and applications. This trend will continue into 2026.
• We see many open-weight AI models emerging – there will be more in the coming year. Organisations will lean towards open, composable AI frameworks, to prevent vendor lock-in, and improve fit, flexibility, and scalability.
• Domain-specific language models, which are trained for a particular industry or function, are likely to be a major trend in 2026. These models are small and economical, yet more accurate and effective, because they are an expert in one, rather than a jack of all trades.
• Model engineers will attempt to bring down latency and cost of inference.
• We are likely to see more compact AI models that can run on regular central processing units (CPUs) or affordable application-specific integrated circuits (ASICs) instead of relying on expensive graphics processing units (GPUs).
• There will be a growth in AI-native development platforms, which will enable small- and medium-sized businesses to quickly and economically build software systems using generative AI (gen AI).
• The use of gen AI in entertainment and gaming is expected to grow in 2026. Apart from being used in the backend, for visual effects and such, AI is also being used by creators, especially in China and India, to create engaging micro-dramas.
• Likewise, AI will continue to be used extensively to fabricate ‘real-time’ data to test systems. Together with virtual reality (VR) and augmented reality (AR), it will be used for training and experimentation, as it will provide immersive, real world scenarios without physical risks. In healthcare, these technologies will be used for training as well as treatments.
• The use of AI in advanced research projects, such as study of protein structures, climate change, energy management, and drug discovery, is also expected to go up.
• That said, Deloitte predicts that by 2026, the use of AI within search will be three times greater than any standalone AI tool.
• CXOs will have to focus on building stronger governance frameworks.
• Organisations will shift manpower around and invest in AI fluency training, as AI takes up more of the grunt work. Engineers and developers need to skill up on prompt engineering, orchestration layers, and model fine-tuning to fit into new roles like prompt engineers, model trainers, and output editors.
• Mathematicians will be in demand – as a lot of research is happening to improve AI models.

Processors – AI chips, quantum chips, and more!

• AI chips are coming out in all shapes and sizes, literally speaking, from AI personal computers to AI supercomputers. There will be an increased focus on developing highly-customised chips for AI training and inference at scale.
• On one hand, we will see an increasing demand for more powerful GPUs (especially Nvidia’s). On the other hand, we will see a growth in ASICs optimised for inference only, as they will be more accessible. Deloitte predicts that while the market for inference-optimised chips will grow to over $50 billion in 2026, combined training/inference AI chips in data centres will continue to dominate the $200 billion AI chip market.
• Big tech companies will continue to work on their in-house chips to reduce dependency on Nvidia.
• We will also see better quantum computing chips this year, with improved error correction and scalability.
• There is also buzz about industry-specific quantum computers on the anvil.

Cloud computing – AI’s best friend

• The cloud will continue to be the wind beneath the wings of AI, and so there will be an increased focus on fortifying and expanding cloud computing infrastructure and services.
• McKinsey estimates global demand for data centre capacity to increase at an annual rate of 19 to 22% from 2023 to 2030. This also means a humongous amount of energy to run, and water to cool the data centres! Companies must figure out how to tackle these problems to meet their sustainability goals.
• Cloud service providers have also started using quantum processors as part of their infrastructure.
• Quantum-as-a-service initiatives are expected to grow to serve more research communities across the world in fields like drug discovery and weather modelling.
• Custom AI chips and improved AI models (with lower inference latency and costs) have made it possible to run AI on edge devices. But, Deloitte forecasts that in 2026, most inference is still likely to take place in data centres using costly, power-intensive AI chips rather than on inexpensive chips at the edge.
• There is a growing tendency for cloud repatriation. That is, companies are trying to shift their operations to private, on-premise data centres, or cloud providers with data centres within their national jurisdiction, for improved privacy and security, and to prevent potential disruptions due to changes in the geopolitical landscape.

Smart entities in the real world – robots, drones, and more

• From drones and defence equipment to checkout kiosks at supermarkets, a lot of things around us are going to glitter with smartness in the coming year, thanks to advancements in AI, computing, and telecommunications.
• Edge AI and advanced sensors will give the Internet of Things (IoT) a boost. We are likely to see progress in several ‘smart’ projects, including smart cities, water management, and more!
• Advanced sensor technology and edge AI will help improve robotic capabilities. AI will also be used extensively to train robots.
• According to a Deloitte 2026 trends report, the cumulative installed base of global industrial robots is estimated to surpass 5.5 million by 2026.
• Drones are expected to get smarter too. With AI features, it is expected that drones will be able to perceive potential risks or red flags in real time and alert the relevant stakeholders.
• Drones-as-a-service market is also expected to increase this year.
• The beyond visual line of sight capabilities of drones have vastly improved, and are set to be put to good use in 2026, for last-mile deliveries, defence operations, security, surveillance, and so on.
• Morgan Stanley sees 2026 as a good year for the commercialisation of autonomous vehicles (AVs), with 33 cities in the US expected to launch services this year. On-road trials of AVs in Europe are expected to begin this year.

Telecommunications – the master weaver

• Commercial space connectivity using low-earth orbits (LEO) is expected to become mainstream in 2026. Deloitte predicts that the number of LEO satellites will touch between 15,000 and 18,000 this year, connecting over 15 million global subscribers. 
• The integration of satellite connectivity with terrestrial telecom networks will provide seamless connectivity to users across the globe, especially covering underserved remote areas.
• While 5G will continue its run, we are likely to see the foundations of 6G shaping up with technical specifications and roadmaps.
• Increased interest in IoT will boost demand for low-power wide area networks, which will be crucial for smart city and Industry 4.0 projects.

Beyond the earthly realm – satellites and rockets galore

• Every country is wooing outer space now – and will continue to invest in space missions.
• There will be more focus on developing manufacturing and launch facilities.
• We are likely to see improvements and innovations related to in-space manoeuvrability and on-orbit fuelling.
• The industry is seeing value in non-earth imaging – that is, gathering images of other satellites in space – to help plan satellite distribution across different orbits
• Countries will start establishing governance structures for safe operations, and debris and traffic management in outer space.
• Governments and industry must jointly figure out how to handle cyber risks and national security concerns related to misuse of satellite communication, imagery, and space occupation over a country’s territory.
• AI will be increasingly used to help process the data from satellites and spacecrafts more effectively. It will also help astronauts with tasks related to monitoring, predictive maintenance, and troubleshooting.

Trust, privacy, and security – key business imperatives

• Deep fakes, misinformation, biases, frauds… all the trust, privacy, safety, and security issues related to AI will continue to rise, and governments will slowly keep introducing guardrails to safeguard their people. So, compliance officers must be on their toes to catch and implement any policy changes quickly.
• Enterprises will adopt AI security platforms, which provide seamless visibility and control across AI applications, including key features for AI accountability, transparency, tech resilience, ethical alignment, regulatory compliance, and privacy engineering.
• As customers become more aware of the privacy and security risks in AI systems, they are likely to seek privacy-centric AI models, where processing happens on-device or on-premise.
• Data provenance will soon become a key aspect of trust. It requires policies and systems to track the origin and movement of data, including the ‘who, where, when, why, what, and how’ of changes.
• We will see a rise in ethical questions and legal scuffles regarding the unauthorised use of copyrighted content to train AI systems.
• As the amount of AI-generated slop increases, the value of authentic human-generated content will rise, especially in creative spheres. Publishers are likely to include seals of authenticity to certify honest, human-generated content.
• Manpower skilled in cybersecurity, especially quantum-safe systems and cross-platform vulnerability management, will be greatly in demand.

Sustainability and circularity – must-do, not can-do!

• The Paris Agreement mandates all entities to achieve net-zero emissions by 2050. Tech majors are well on track, and the others will have to catch up too this year because governments are under pressure to implement necessary regulations on an urgent basis.
• There will be a drive to build sustainability and circularity into business strategies, as customers start looking for these. Already tech majors have started favouring vendors who are committed to sustainability.
• Companies will start encouraging a repair, reuse, and recycle culture.
• They will have to plan for waste, water, and carbon management. It will become imperative to reduce carbon emissions at all levels, while also offsetting emitted carbon by purchasing carbon credits.
• It is expected that organisations will increasingly use AI in the coming year to optimise their energy usage and plan their net-zero roadmaps.

In 2026 and coming years, we shall see not just trade but also technology emerging as a clear sign of power. In the changing face of geopolitics, nations across the world are striving for digital sovereignty. They are aiming to create and own their talent, research, and technology, right from hardware, AI models, apps, and data centres, to telecom networks and even space above their territory. Clearly, this is a great opportunity for regional players to step up their game.

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This is going to be an interesting year for the tech industry – not just globally but in India too! We will keep you updated of developments and disruptions along the way.

Janani G. Vikram is a freelance writer based in Chennai, who loves to write on emerging technologies and Indian culture.