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.
Andrew Ferguson, a vice president at Databricks Ventures, believes 2026 will mark a shift as enterprises consolidate investments and select preferred AI solutions. He noted that currently, enterprises often test multiple tools for a single application, leading to a proliferation of startups targeting specific business functions. Ferguson stated that discerning differentiation is difficult, even during proof-of-concept stages.
The shift towards consolidation is expected as enterprises gain tangible results from AI deployments. According to Ferguson, this will lead to a reduction in experimentation budgets, streamlining of overlapping tools, and reallocation of resources toward AI technologies that have demonstrated value.
Rob Biederman, a managing partner at Asymmetric Capital Partners, echoed this sentiment. The current phase of experimentation follows several years of enterprises piloting various AI tools to determine their optimal adoption strategies. Investors now believe this experimental phase is nearing its end.
The move towards fewer vendors reflects a maturing AI market. Enterprises are seeking to move beyond initial trials and implement AI solutions at scale. This requires selecting platforms and vendors that can provide comprehensive capabilities and long-term support. The focus will likely shift towards platforms that offer robust infrastructure, data management, and integration capabilities, rather than point solutions addressing narrow use cases. This consolidation could impact the startup landscape, as companies with niche offerings may face challenges competing with larger, more established players.
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