Steve Young, UK SVP and MD at Dell Technologies, predicts that businesses which embed AI into the fabric of their operations will outpace those still treating it as a standalone tool.

In 2026, AI use will start to be a defining factor that separates good companies from great ones. Those who embed AI into the fabric of their operations will drive innovation, efficiency and resilience at an unprecedented scale. 

Intelligent agents will start to change industries by coordinating complex workflows and optimising processes in real time. These agents will elevate operational excellence, empowering businesses to achieve higher levels of performance and agility. 

Imagine intelligent agents orchestrating end-to-end customer journeys, proactively resolving issues, or even managing talent allocation across different projects.

Data quality is at the core of this transformation because data is fuel that powers AI’s ability to redefine excellence. As AI systems become more sophisticated, the quality and management of data will determine their success. Purpose-built AI data platforms that are optimised for the unique demands of AI training and inference will become essential.

What it means: The imperative for 2026 is to move AI from a standalone tool to the central nervous system of the enterprise. Without a purpose-built data platform, even the most advanced AI models will fail. By mastering your data, you will achieve a new level of operational excellence and agility.

Hybrid infrastructure will be non-negotiable

Most UK enterprises built their core infrastructure long before GenAI existed. With 80% of new data globally being unstructured and growing 55% annually, hybrid strategies are now essential. Critical data and AI agents trained on proprietary knowledge must remain on-premises for uncompromised security, stringent compliance and cost control. AI PCs will be vital for inferencing and decision-making at the edge to reduce latency.

What it means: Leaders should update legacy infrastructure to balance security, speed and cost in a hybrid infrastructure. They should prioritise security and compliance by keeping critical data and proprietary knowledge on-premises, while using the cloud for scalability and less sensitive workloads. Adding AI-enabled edge devices will also power real-time decision-making and reduce latency, helping to drive operational efficiency.

Micro LLMs will drive efficiency at the edge

Centralised AI is evolving into a broader ecosystem where large foundation models and micro LLMs work in tandem to enable intelligence everywhere. Micro LLMs – compact, task-specific models running at the edge – fit naturally into this shift, driving real-time decision-making wherever data is created.

When embedded locally in devices like AI PCs or edge systems, they reduce latency, help keep sensitive data on the device to enhance privacy and security and ensure operations continue smoothly even when connectivity drops. For industries like manufacturing, logistics or energy, micro LLMs open the door to real-time quality control, autonomous rerouting and resilient performance.

What it means: Look for ways to integrate micro LLMs into your edge strategy, focusing on real-time decision-making and data privacy. Investing in these capabilities today sets the groundwork for greater adaptability and long-term advantage as the AI ecosystem continues to evolve.

Sovereign AI will help accelerate the UK’s digital autonomy

The UK is advancing its sovereign AI infrastructure with initiatives like AI Growth Zones, the Compute Roadmap to drive local innovation and maintain digital sovereignty. 2025 also saw important infrastructure investment announcements, showing the growing alignment between technology providers and the UK’s vision for secure, localised AI capabilities.

This shift will change how enterprises operate, encouraging them to scale within regional boundaries and use local infrastructure. By keeping data within national borders, the UK is fostering a new wave of innovation that directly impacts citizens and helps strengthen competitiveness. 

What it means: For UK businesses, this is a foundational shift that moves AI from a global concept to a powerful local reality. Aligning with the UK’s sovereign infrastructure will serve as a competitive accelerant, future-proofing your business by building on a secure, domestic foundation.

A checklist for UK leaders in 2026

AI innovation is set to unlock great potential, when adopted and leveraged in the right way. For those unclear on where to start, Steve Young advises UK business leaders to focus on three priorities:

• Embed AI deeply – Move beyond standalone tools; integrate intelligent agents into your core operations to transform workflows and elevate your decision making.
• Adopt a hybrid strategy – Balance your workloads across on-prem, cloud, and edge to enhance security, control costs, and accelerate innovation.
• Align with sovereign infrastructure – Engage with sovereign AI principles that can improve security, ensure compliance and boost competitiveness.

This article is part of our DCR Predicts 2026 series. Come back every week in January for more.