AI is still one of the biggest buzzwords in enterprise technology, and for good reason. It’s evolving fast, it’s changing how work gets done, and it’s creating just as much confusion as excitement. Some organizations are already experimenting heavily. Others are still trying to figure out what AI actually means for their business beyond a few “cool demos” and pilot projects.
But one thing is clear: AI in 2026 is going to look very different than AI today.
Below are five predictions that will shape how AI is adopted, governed, and embedded into enterprise operations over the next year, and what leaders should do now to stay ahead of it.
(If you’re looking for broader trends beyond AI, cloud, ERP modernization, operating model changes, and digital strategy, you can also explore our 2026 Digital Transformation Report.)
Table of Contents
Toggle1) AI use cases will finally move from pilots to scale
For the last couple of years, most organizations have “dipped their toe in the water.” They’ve tried Copilots. They’ve tested one-off use cases in a department. Maybe a few power users are building better workflows for themselves. Many organizations are waiting until an ERP rollout is complete before they take AI seriously.
2026 is likely when that changes.
Not because the technology suddenly becomes perfect, but because organizations will start to feel confident enough to standardize what’s working and expand it across the business. We’re already seeing early examples of meaningful use cases: automation around purchase order approvals, three-way match processes, demand forecasting, and even shop floor labor scheduling. The difference is that most of these efforts are still isolated.
In 2026, the winners will be the organizations that stop thinking of AI as an “innovation lab experiment” and start treating it as an operational capability. That means selecting use cases that tie directly to business outcomes and then deliberately scaling them across functions, not just testing them in one corner of the organization.
Another reason this acceleration is coming: employees themselves are getting more comfortable. Many people have already used tools like ChatGPT, Gemini, or Perplexity at home, even casually. That consumer familiarity lowers the adoption barrier inside the enterprise, because AI no longer feels like science fiction. It feels like a tool.
2) The AI vendor bubble will start to burst (and consolidation will follow)
Right now, there is an enormous amount of money chasing AI. The market is flooded with AI startups, platforms, and “AI-driven” solutions, plus every major enterprise software vendor is investing heavily in their own AI capabilities.
This is what hype cycles look like: too much capital, too many vendors, and inflated expectations.
In 2026, we’re likely to see more AI software providers fail or get acquired. When valuations rise faster than adoption and real customer value, markets correct. Some tools will disappear. Others will be absorbed into larger platforms that want to build AI capabilities quickly.
For enterprise buyers, this matters because “cool AI” doesn’t automatically mean “safe investment.” Vendor viability, roadmap clarity, and integration capability will become even more important evaluation criteria. The organizations that chase shiny tools without thinking about long-term support and scale will be the ones stuck with orphaned platforms.
3) AI and ERP will keep converging until they’re no longer separate categories
ERP vendors are investing heavily in AI, and most of them are also loudly marketing that fact. But the bigger trend isn’t simply “ERP is adding AI.” It’s that the lines between “AI tools” and “ERP systems” will continue to blur.
Over time, we’re not going to think of AI as a standalone category the way we do now. We’re talking about it separately today because it’s new and still feels distinct. In the long run, AI becomes baked into everything: workflows, reporting, automation, forecasting, planning, customer experiences, and decision support.
At the same time, organizations are starting to realize they don’t need a brand-new ERP implementation to benefit from AI. There are plenty of third-party tools that can integrate with existing systems and create real value without a rip-and-replace approach.
In 2026, expect more organizations to take a practical approach: “How do we integrate AI into our current landscape?” rather than “We need an entirely new ERP to unlock AI.”
4) Shadow AI will become the next “spreadsheet problem”
One of the most important trends coming is something many organizations aren’t ready for: shadow AI.
Shadow AI is what happens when employees and departments adopt AI tools independently, buying subscriptions, building their own use cases, and creating workflows outside of IT governance. On the surface, it looks like innovation. And in many cases, it is.
But it also creates fragmentation.
If spreadsheets taught us anything, it’s that decentralized tools can quickly lead to inconsistent processes, conflicting versions of the truth, and hidden operational risk. Shadow AI has the same potential, only with much higher stakes, because AI can influence decisions, generate outputs that appear “confident,” and pull from data sources that may not be governed properly.
In 2026, organizations will feel the pressure to standardize AI usage, not to kill innovation, but to prevent a chaotic patchwork of tools and practices that make the business harder to run cohesively.
5) AI governance will shift from “nice to have” to “non-negotiable”
AI governance is going to be one of the biggest enterprise conversations in 2026, and it probably won’t be driven by theory. It will be driven by mistakes.
All it takes is one or two high-profile failures, bad decisions made from flawed AI output, inaccurate reporting, compliance issues, or reputational damage, and organizations will swing hard toward oversight, controls, and accountability. In consulting alone, we’re already seeing backlash where firms have been accused of using AI to generate reports with questionable or false data while charging clients large fees.
That’s a warning sign for every industry.
But AI governance isn’t possible without another prerequisite: data governance. If your data isn’t clean, consistent, and well-managed, AI will amplify the problem. You can’t govern AI if you don’t trust the data that feeds it.
In 2026, expect more organizations to add a formal layer of AI governance on top of existing data governance, requiring human validation, clear accountability, and guardrails around what AI can (and can’t) do. The goal isn’t to slow everything down. The goal is to ensure AI adds value without running unchecked.
What this means for executives going into 2026
The biggest shift is this: AI is moving from novelty to infrastructure.
If your organization wants to win in 2026, focus less on “AI excitement” and more on:
- scaling a few high-impact use cases (instead of running endless pilots)
- choosing vendors that will still exist in 24–36 months
- integrating AI into your current enterprise landscape pragmatically
- proactively managing shadow AI before it becomes chaos
- building governance that starts with clean data and ends with human accountability
AI will keep changing. The organizations that thrive won’t be the ones chasing every trend; they’ll be the ones building the discipline to adopt AI in a way that’s scalable, secure, and actually useful.

Eric is recognized globally as a leading voice in digital transformation and ERP strategy. Over the past two decades, he has helped hundreds of organizations – including Nucor Steel, Fisher & Paykel Healthcare, Kodak, Coors, Boeing, and Duke Energy – define their technology roadmaps, modernize complex operations, and deliver real business value from large-scale transformation initiatives.
As Founder and CEO of Third Stage Consulting, Eric leads an independent, technology-agnostic advisory firm focused on helping clients navigate the shift from traditional ERP to more flexible, AI-enabled Digital Enterprise Operations (DEO) models. His work spans ERP selection, implementation quality assurance, organizational change, and operating model design across a wide range of industries and geographies.
Eric is also a prolific thought leader, known for his pragmatic takes on AI, cloud, and enterprise software trends, as well as his firm’s benchmark research and frameworks for de-risking transformation. He is dedicated to helping executive teams cut through vendor hype, make confident investment decisions, and successfully reach the “third stage” of their digital evolution.