AI Shifts from Hype to Pragmatism as Tech Giants Face ROI Pressure

After years of breathless predictions, artificial intelligence is entering what experts call its "accountability phase" in 2026. The focus is shifting from building ever-larger language models toward the harder work of making AI practically usable in enterprise settings.

"2026 is the 'show me the money' year for AI. Enterprises will need to see real ROI in their spend." — Venky Ganesan, Menlo Ventures

Massive Infrastructure Spending

Big Tech continues massive spending on AI infrastructure. Amazon has increased its capital expenditure forecast to $125 billion for 2026, while analysts project Meta's spending could reach $110 billion. Microsoft faces particular scrutiny as it builds out data centres to support Azure cloud and its partnership with OpenAI.

EY's James Brundage echoed this sentiment, predicting that "boards will stop counting tokens and pilots and start counting dollars."

AI Coding Tools Lead the Way

AI coding tools have emerged as one of the technology's first genuine use cases for business. AI now writes approximately 30% of Microsoft's code and more than a quarter of Google's, according to company executives. Tools like GitHub Copilot, Cursor, and Replit have democratised software development, enabling non-programmers to build functional applications.

Quantum Computing on the Horizon

Despite the maturation, concerns persist. IBM has declared 2026 will mark the first time a quantum computer outperforms a classical computer, potentially unlocking breakthroughs in drug development and materials science. However, researchers caution that AI agents remain too error-prone for high-stakes business processes.