The artificial intelligence boom, which has dominated business conversations and technological advancements in recent years, faces a critical juncture in 2026 as experts predict a potential shift from hype to practical application. According to Fortune's "Term Sheet Crystal Ball," the coming year could mark the end of "AI novelty purchasing," with companies demanding measurable return on investment (ROI) rather than being swayed by impressive demonstrations.

The shift indicates a maturing market where the focus is increasingly on tangible benefits such as increased revenue, reduced customer churn, and automation of routine tasks. Stevie Case, chief revenue officer at Vanta, suggests that the bar for AI acceptance is rising, requiring demonstrable value rather than just technological novelty. This perspective aligns with the broader understanding that the AI discourse has moved beyond boardrooms and into mainstream consciousness, necessitating a more pragmatic approach to its implementation.

The concept of an "AI bubble" has been circulating, raising questions about its size and the long-term viability of AI companies. The bubble refers to the inflated valuations and expectations surrounding AI technologies, which some analysts believe are unsustainable. The concern is that many AI companies are overvalued based on potential rather than actual performance, leading to a market correction if they fail to deliver on their promises.

The implications of a potential AI bubble burst extend beyond the tech industry, impacting society as a whole. AI technologies are increasingly integrated into various sectors, including healthcare, finance, and transportation. A significant downturn in the AI market could slow down innovation and adoption, affecting the development of new products and services.

However, not all areas of AI are considered equally vulnerable. Experts believe that AI applications with clear and measurable benefits, such as those that automate complex processes or provide data-driven insights, are more likely to withstand market fluctuations. Companies that can demonstrate the practical value of their AI solutions are better positioned for long-term success.

As 2026 approaches, the AI industry is under pressure to deliver on its promises. The focus is shifting from hype to substance, with companies needing to prove the ROI of their AI investments. The coming year will be a critical test for the AI market, determining whether it can sustain its growth or whether the bubble will indeed burst.