Three Trends That Will Define AI in 2026
There has been a great deal of discussion surrounding the current artificial intelligence (AI) boom, as well as the potential for a bust reminiscent of the end of the dot com era . AI continues to predominate venture capital (VC) investment, with KMPG recently reporting that “VC investors continued to double down on AI in Q3’25, with companies developing AI models and platforms attracting many of the largest funding rounds of the quarter.” And this is showing no signs of slowing down. While experts can debate whether we are in an AI bubble that could burst, unlike the boom cycles we have experienced in the past, this time, investors are becoming more selective. AI startup formation will no doubt continue its surge as we move into 2026, but funding will become even more concentrated among those companies that can demonstrate a real product-market fit and a credible plan for legal rights and regulatory compliance. Below are three trends that we can expect to define the AI sect...