Venture capitalists anticipate that enterprises will increase their spending on artificial intelligence in 2026, but will concentrate those investments with fewer vendors. A recent TechCrunch survey of 24 enterprise-focused VCs revealed that a majority predict increased AI budgets in 2026, though not across the board. The anticipated budget increase will be focused, with many enterprises allocating more funds to a smaller number of contracts.
According to Andrew Ferguson, a vice president at Databricks Ventures, 2026 is expected to be the year when enterprises begin consolidating their AI investments and selecting preferred platforms. Ferguson noted that currently, enterprises are testing multiple AI tools for single-use cases, leading to a proliferation of startups targeting specific business functions. He added that it is often difficult to differentiate between these tools, even during proof-of-concept trials.
The shift towards consolidation is expected as enterprises gain tangible results from AI deployments. Rob Biederman, a managing partner at Asymmetric Capital Partners, believes that companies will reduce their experimentation budgets, streamline overlapping tools, and reinvest the savings into AI technologies that have proven effective.
For the past few years, enterprises have been actively piloting and testing various AI tools to determine their optimal adoption strategies. Investors believe that this experimental phase is nearing its end. As enterprises identify AI solutions that deliver concrete value, they are expected to prioritize these technologies and reduce investment in less successful or redundant tools. This consolidation trend could significantly impact the AI vendor landscape, potentially favoring established players and those offering demonstrably superior performance.
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