Top AI Trends That Will Shape Business, Law, and Work in 2026 and Beyond

Artificial intelligence has officially moved from experimentation to infrastructure. That was one of the clearest messages to emerge from a recent Emerging Tech Law Series conversation with Justine Kasznica and Chris Farmakis of Babst Calland, who spend their days advising companies at the intersection of technology, law, and risk.

What once lived on innovation roadmaps and pilot programs is now embedded in core business operations across nearly every industry. But this acceleration is not without consequences. From regulation and workforce transformation to consolidation and energy constraints, AI’s next chapter will be defined less by novelty and more by execution.

Here are the top AI trends to watch based on their insights.

1. AI Becomes a Core Business Driver, Not a Side Tool

The most important shift underway is structural. Companies are no longer experimenting with AI-enabled features. They are building AI-driven operations. AI is now making decisions, planning workflows, automating complex processes, and influencing revenue generation.

This transition marks a move away from predictive analytics toward systems capable of autonomous action. As these tools become more sophisticated, organizations will increasingly rely on AI for real business outcomes, not just efficiency gains. The implication is clear. AI strategy is now business strategy.

2. Execution Gaps Will Separate Winners From Losers

While AI adoption is widespread, results are not uniform. The biggest divide is not access to technology but the ability to implement it effectively. Companies that struggle tend to suffer from poor data quality, fragmented systems, and lack of internal expertise.

Those seeing strong returns focus narrowly on high-impact use cases, ensure leadership involvement, and invest in clean, well-governed data. The lesson is simple. AI does not fix broken processes. It amplifies them. Organizations that fail to prepare their foundations will continue to see disappointing results, even as spending increases.

3. Privacy, Security, and Data Governance Take Center Stage

As AI becomes embedded in daily operations, the risks associated with improper data use grow significantly. Inputting sensitive or proprietary information into unsecured AI systems can expose companies to confidentiality breaches, regulatory violations, and even criminal liability.

Expect greater emphasis on secure, enterprise-grade AI platforms, comprehensive internal AI policies, and workforce training. Data governance is no longer a back-office concern. It is a frontline business issue that determines how safely and responsibly AI can be deployed.

4. Consolidation Will Accelerate Across the AI Landscape

The AI ecosystem is crowded, with hundreds of tools addressing narrow use cases. However, the advantage increasingly lies with large platforms that control vast datasets and advanced models. Smaller AI providers will face growing pressure to partner, consolidate, or exit as infrastructure requirements rise.

This consolidation mirrors earlier technology cycles and will reshape procurement decisions for businesses. Companies will prioritize fewer, more integrated platforms over a patchwork of specialized tools, both to control costs and manage risk.

5. The Workforce Will Be Reshaped, Not Replaced

AI’s impact on jobs is real, but it is more nuanced than simple displacement. While certain tasks will be automated, demand for skilled professionals continues to rise. The real challenge lies in reskilling and redefining roles so humans and AI work together effectively.

Organizations that fail to invest in training and change management risk losing talent and competitiveness. Leaders must actively design how AI integrates into workflows, rather than allowing adoption to happen haphazardly from the bottom up.

6. Regulation Finally Catches Up

Global momentum around AI regulation is building. International frameworks, national strategies, and sector-specific rules are emerging to address safety, accountability, privacy, and misuse. In the U.S., the absence of comprehensive federal standards is increasingly seen as a competitive disadvantage.

Clear, consistent regulation will be critical to enabling innovation at scale. Businesses are watching closely as policymakers work to balance flexibility with guardrails in areas such as intellectual property, disinformation, and AI-powered decision-making.

AI’s next phase will not be defined by surprise breakthroughs, but by disciplined execution. Companies that focus on governance, workforce readiness, and strategic alignment will be best positioned to thrive. Those who chase every new tool without a plan may find themselves overwhelmed in a landscape moving faster than ever.

Listen to Justine and Chris talk in more depth about AI trends on the Emerging Tech Law Series.