Is the AI Boom at Risk? New Study Points to 2026 as a Defining Year for Business Leaders

New findings released by Tech Show London, the UK’s flagship technology event organised by CloserStill Media, suggest that while investment in artificial intelligence continues to rise sharply, many organisations remain uncertain about how to translate that spending into effective, long-term strategy.

According to the research, nearly three-quarters (73%) of UK companies increased their spending on AI and AI-powered tools in 2025 compared with the previous year. On average, businesses invested £75,000 ($101,078) in AI-related technologies during 2025 alone, underlining the scale of commitment now being made across the market.

There are signs of progress in how some organisations are managing this shift. A growing number have put clearer governance structures in place, with responsibility for AI adoption and oversight increasingly assigned at senior levels. Almost 18% of respondents said a CTO, CIO or specialist technology team is now accountable for ensuring AI is deployed in a responsible and ethical manner.

Despite this, gaps remain between intention and execution. While only 8% of leaders admit to having no AI workforce strategy whatsoever, the study indicates that many existing plans are failing to deliver meaningful results. Building and sustaining employee trust remains a significant challenge, cited by nearly a third (32%) of organisations.

Workforce Change Reflects AI’s Growing Influence
Over the past year, AI adoption has driven notable changes in workforce planning across the UK. Almost two in five businesses (39%) focused on retraining existing employees to work alongside new technologies, while 34% introduced new roles or recruited talent with specialist AI and data capabilities.

At the same time, the efficiency gains promised by automation have led to difficult decisions. Nearly a quarter (24%) of organisations reduced overall headcount to manage costs or improve productivity, and 23% scaled back junior or entry-level recruitment as automated systems began to take over certain tasks. These shifts highlight ongoing efforts to prepare for a future in which human expertise and AI systems are more tightly integrated—though progress has been far from uniform.

From Rapid Spending to Real Impact

As AI investment accelerates, the research raises critical questions about whether funding is being directed effectively, whether a market correction could be on the horizon, and how leaders can ensure their technology decisions deliver measurable value in 2026 and beyond.

Piers Linney MBE, former Dragon’s Den investor and Executive Chairman and Co-Founder of Implement.AI, describes 2026 as a pivotal moment for organisations. He cautions that while enthusiasm for AI is widespread, leaders must avoid rushing implementation at the expense of structure and accountability, striking a careful balance between pace and precision.

Simon Press, Senior Portfolio Director at CloserStill Media, reinforces this message. “AI is no longer just a talking point—it’s a funded business priority,” he said. “But with innovation moving at such speed, decision-makers need reliable insight and clear direction to prevent wasted investment and missed opportunities.

“These results underline the importance of challenging assumptions, recognising blind spots, and understanding the financial risks of failing to address them.”

Why Leadership Will Be Put to the Test in 2026

With investment levels high and expectations mounting, business leaders face increasing pressure to make informed, strategic choices around AI. Access to practical guidance, expert insight and proven approaches will be critical—making Tech Show London’s 2026 edition particularly significant.

The event will take place from 4–5 March 2026 at ExCeL London and will host five major technology showcases: Cloud & AI Infrastructure, DevOps Live, Cloud & Cyber Security Expo, Big Data & AI World, and Data Centre World. The speaker lineup already includes Piers Linney MBE, Professor Hannah Fry and Baroness Martha Lane Fox.